BizJournals Portfolio

The Great Experiment

Jan 14 2008

Back to: The Marriage From Hell

illustration of Sears and Kmart logos
Hedge fund manager Eddie Lampert at the announcement of the Sears-Kmart merger, in 2004.
empty Kmart shelves
In a New Jersey Sears.
Martha Stewart, an aggrieved supplier.
A sign in the back room of a Chicago Kmart.
1 of 12
The Great Experiment
Illustration by Bryan Christie
This year, the cost cutting and slashing of capital spending caught up with hedge fund manager Eddie Lampert. Net income at Sears Holdings cratered, dropping 99 percent in the third quarter to $2 million. Sales at stores open a year or more, a key measure of retail performance, have continued to drop at both Sears and Kmart.
Big Deal
Hedge fund manager Eddie Lampert at the announcement of the Sears-Kmart merger, in 2004.
Down-Market
Some of Lampert's Kmarts still suffer from empty shelves and a dowdy look.
Test Market
In a New Jersey Sears.
Vexed Vendor
Martha Stewart, an aggrieved supplier.
Wishful Thinking
A sign in the back room of a Chicago Kmart. The chain has been squeezed between Target's higher-end goods and Wal-Mart's low prices.

Related Content

The Marriage From Hell

The Marriage From Hell

Why Eddie Lampert's failing Sears-Kmart experiment could mean trouble for dealmakers everywhere. Read more
From Limelight to Blue Light

From Limelight to Blue Light

Eddie Lampert made his $4.5 billion fortune by investing in companies and turning them around. But the buyout cycle has ended, and the hedge fund manager who has been compared to Warren Buffett is now being forced to change his strategy. Read more