Sears Canada said Thursday current chief Doug Campbell has handed in his resignation, one year after Campbell took over at the embattled retailer.
Campbell “informed the company that he intends to resign … to tend to personal family issues,” a statement from Sears Canada said.
Campbell was appointed to the helm of Sears in September of last year, after former head Calvin McDonald quit.
Similar to his predecessor, Campbell was charged with turning around a Sears Canada franchise that has seen sales stumble across its national network of department stores in recent years.
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The once iconic department store has vacated several high-profile “anchor” locations, such as Toronto’s Eaton Centre.
Other marquee locations in Toronto, Vancouver, Calgary and Ottawa have been exited since last year as Sears has refocused turnaround efforts in areas of the country where it remains relevant to customers, skewing its presence toward smaller centres in Western Canada.
rural, suburban focus
Sears said Thursday it is commencing an immediate search for a new CEO. Campbell will stay on during the transition but will no longer than Jan. 1, the company said.
“Sears Canada remains committed to continue the strategy of optimizing productivity, realizing value from desirable assets, and creating a highly relevant retailer in Canada,” the department store chain said.
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It added its focus will continue to be trained on “rural and suburban locations.”
Sears Canada is majority owned by its U.S. parent, Sears Holdings Corp., which said earlier this year it is seeking a sale of its Canadian stake.
Sears, which first opened department stores in Canada in the 1950s, operates about 175 corporate stores across the country, as 222 Hometown stores.
This month, a group of current and former Hometown store operators filed a class action lawsuit against Sears Canada claiming the company made it “virtually impossible” for them to operate profitably.
Opening for Target?
Experts likened Sears Canada’s challenges to Target on Thursday.
“Both Sears Canada and Target Canada are posting substantial operating losses,” Desjardins Securities analysts said in a note to clients. The long-term prospects for each are “challenging,” they said.
“The longevity of one may potentially be prolonged by the demise of the other,” the retail stock experts said.
“Target Canada, however, has a modern store network and is growing total sales, albeit from a low base. Sears Canada, on the other hand, has a shrinking store network which is in need of reinvestment, in our view, and is experiencing declining total sales.”
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