The best thing about Sears’ loyalty card and Internet business: It makes it easier to get rid of stores.
Hedge-fund billionaire Eddie Lampert, who took over Sears as CEO in February, hinted that he’s not finished unloading Sears and Kmart stores, even as he touted the success of the retailer’s “Shop Your Way” loyalty program and its growing sales online.
“We are becoming a company focused less on products and less on stores and much more on members,” Lampert told shareholders at the company’s annual meeting yesterday.
“We know that the level of profitability is still well below what it needs to be to justify the assets we’ve dedicated to the business,” Lampert added.
Members of Sears’ “Shop Your Way” loyalty program accounted for more than half its sales last year, rising 8 percent. The company’s Web site grew sales by 17 percent.
Overall revenue dropped 4 percent, spurring a $930 million loss. That’s despite last year’s spin-off of Sears’ home-store unit, which raised more than $500 million.