Sears Orders Shake-Up at Ailing Merchandise Unit

Sears, Roebuck & Co., the world’s largest retailer, reshuffled its merchandise group management in an attempt to revive the sluggish retail operations after its “everyday low pricing” strategy met with a poor consumer response.

Sears said Chairman and Chief Executive Edward A. Brennan would take direct control of the merchandise group, the company’s largest division.

Michael Bozic, merchandise group chairman and chief executive since Jan. 1, 1987, will be effectively demoted, serving in the new position of group president and chief operating officer, reporting to Brennan. Bozic will manage the group’s catalogue, credit, product services, logistics, international and staff functions.

Jesup, Josephthal & Co. analyst Janet Mangano said under the restructuring “Bozic will have much more specific marching orders.” But she questioned whether Bozic was given enough time to prove himself. “What it probably comes down to is that the assignment was overwhelming,” Mangano said.

“The realignment is designed to create a highly focused management team whose skills are well matched with the challenges currently facing the retailing industry,” Brennan said.

Sears, in announcing the rearrangement, emphasized the importance of improving merchandise group performance, analysts said.

“There’s an urgency with which this division needs to get its profitability back on track. That’s the message,” said Prudential-Bache securities analyst L. Wayne Hood.

Laurence E. Cudmore, president of Sears merchandise group’s retail segment, and Alfred G. Goldstein, president of the group’s specialty merchandising segment, will also report to Brennan, the company said.