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Sears chief eyes growth
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September 11, 2000: 1:24 p.m. ET
New CEO Lacy wants to boost clothing business, expand Web strategy
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NEW YORK (CNNfn) - The newly anointed CEO of Sears Roebuck & Co. said Monday he plans to make his mark on the No. 2 U.S. retailer quickly, focusing on the struggling clothing business and further developing the company's Internet strategy.
The department store chain Sunday appointed Alan J. Lacy, the company's president of services, to succeed retiring Chairman and CEO Arthur Martinez.
"I firmly believe in continuous improvement, and while we've had a great legacy and some great success, we can do better," Lacy said in a conference call Monday. "By the end of this year, I will have some of my stamp already on the company in terms of new directions and new emphasis."
Lacy, 46, takes over as CEO Oct. 1 and as chairman in December.
Lacy said the company is working to reverse an industry-wide trend of sluggish apparel sales. In August, Sears reported a modest 5.6 percent increase in same-store sales, or sales at stores open at least a year. August is generally considered a crucial month for retailers because of the annual back-to-school rush to buy clothes.
Lacy said he sees major opportunities ahead for the company in home appliance sales, a market that retail rival Circuit City Stores Inc. (CC: Research, Estimates) recently announced it will exit. He also cited high growth potential for the company's specialty store chain, The Great Indoors, and its Sears.com e-commerce service.
Lacy also said he wants the retailer to expand efforts to "bundle" offerings, such as getting customers not just to buy a product but also to sign up for installation services and a service contract, and to pay for the merchandise through a Sears credit offering. The company also is renovating stores in an attempt to make them more appealing to shoppers.
"We have had a tough few years here," he said, "but I think we're well positioned for substantial growth."
Lacy joined the Hoffman Estates, Ill.-based retailer in 1994 as a senior vice president of finance. A year later he was named executive vice president and chief financial officer. He was named president of Sears Credit in 1997, and became president of services a year ago.
Sears, the biggest U.S. retail chain after Wal-Mart (WMT: Research, Estimates), exceeded Wall Street's earnings estimates in the second quarter ended in June, aided by growth in its retail operations and strong performance in the credit division.
Lacy also said the retailer's tire business is performing particularly well, following the Firestone tire recall that has forced many drivers of Ford sport/utility vehicles and light trucks to replace their tires.
"We are seeing a very significant lift in how that business is operating," he said.
In afternoon trading Monday, Sears (S: Research, Estimates) stock rose 63 cents to $35.38. 
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Sears
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