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Sears Plans Reorganization to Revitalize Biz
Sagging fortunes since 2005 merger with Kmart prompts a shakeup
By Jim O'Neill
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Posted Jan 19, 08 6:26 AM CST
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(Newser)
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Foundering retailer Sears is hoping yet another change of course can help it sail out of its financial doldrums after watching its stock value drop in half this year and warning investors fourth-quarter earnings would plummet 57% from a year ago, reports the Wall Street Journal. Chairman Edward Lampert plans a reorganization creating as many as three dozen separate operating units.
Sears merged with Kmart in 2005, and has lost share to Walmart and big-box specialty retailers offering larger variety at competitive prices. The reorganization would allow Sears to spin-off or sell struggling units while growing its portfolio of recognized brands and its valuable real estate holdings. Critics warn the plan doesn’t create a cohesive image for the business.