Sears replaces chief as sales dip

Mr Lacy will be staying at the group in a new role as vice-chairman

Sears, the third largest retailer in the US, has announced it is to replace chief executive Alan Lacy.

Alan Lacy will leave his post late this month to be replaced by Aylwin Lewis.

The news came as it unveiled a drop in sales in the three months top 30 July. Sears sales fell 7.4% while sales at newly-acquired Kmart dipped 0.3%.

But, earnings rose to $161m (£87.8m) from $110m at the same time last year - on a basis that assumes the merger of Sears and Kmart was completed in 2004.

Mr Lacy has long faced market criticism from market experts for failing to lift the company's sales despite years of efforts to turnaround the group's fortunes.

However, he will remain at the combined Sears Holdings group as vice chairman and will focus its merger strategy.

All change

Commentators had long expected Mr Lacy to move elsewhere in the business as his forte was more in the finance arena while his replacement has a much stronger retail background.

Sears had tried to entice shoppers into spending more by concentrating on its clothing lines - a move that did result in increasing apparel sales.

However, experts added that the move had come at the expense of its leading and most lucrative appliances business which mean that competitors took the chance to grab a bigger share of the market.

Commentators had long expected Mr Lacy to move elsewhere in the business as his forte was more in the finance arena. His replacement, Mr Lewis, has a much stronger retail background.

In an effort to cut costs the group has been closing underperforming stores and it has also cut back on the number of clearance sales it holds which result in lower profit margins.