Should Eddie Lampert Fire the CEO of Sears?

Many failed to see what the big deal was back in January when it was announced Edward Lampert, chairman of Sears Holdings , was taking over as CEO of the company. After all, through leaders both interim and permanent, it was widely believed Mr. Lampert had been calling the shots since merging Kmart and Sears some eight years back. He has certainly been blamed for failing to invest in the company's stores. He has jumped from one tactic to another, all the while claiming to have a grand strategy to turn the business around — one not readily apparent to retail industry watchers.

As retail industry analyst Ben Ball quipped on RetailWire.com, "Lampert has to be CEO of Sears Holdings because he seems to be the only one who has a clue what he's doing with it."

Joking aside, a fair amount of bitterness was evident in the RetailWire online discussion. Consultant and retail trainer Bob Phibbs pointedly wrote, "Activist investors are killing retail brands."

In an interview by Bloomberg News, Mr. Lampert claimed that his critics just don't get it. Perhaps the misunderstanding between Mr. Lampert and his critics has to do with how each defines success.

Some, like former chairman and CEO of Sears Canada Mark Cohen, do not seem to believe that words like "merchant" or "retailer" should be used in the same sentence as Mr. Lampert's name.

"Sears is slowly and steadily failing at the hands of a ruthless, methodical asset-stripper," Mr. Cohen told Bloomberg. "Lampert will come up with some cash every quarter or two to make sure the balance sheet is still viable. It's a tragedy because Sears is a legacy brand that needed to be and could've been repositioned."

M. Jericho Banks, president, CEO of Forensic Marketing used a common baseball analogy in explaining Mr. Lampert's misjudgments. "No one, not even Edward Lampert, can be team owner, and team manager, and ace pitcher. It's almost too late for Lampert to realize that he must hire competent marketers, merchants, and managers, and then back off and leave them alone," he wrote on RetailWire. "It seems like it's not in his character to do so. It's a shame that a single man's character flaws can negatively affect so many employees and customers."

"Kmart and Sears are dinosaurs now," commented Paula Rosenblum, managing partner, RSR Research. "The department store model is tired and old, especially the 'low priced spreads.' Five years ago I might have said the company could be turned around by shrinking the store format and getting out of the apparel business (for one). But that concept (Sears Grand) was killed by Mr. Lampert, and the brand equity of Kenmore, Craftsman and DieHard has eroded over time."

Even the argument that Mr. Lampert is trading retail profits for real estate profits is failing to hold water at this point. "The problem is, this real estate strategy has also fallen apart," commented retail consultant Frank Dell on RetailWire. "The real estate is not worth anywhere near what Mr. Lampert expected. As online sales increase every year, real estate loses value."

In an interview last month with WWD.com, Mr. Lampert offered this definition: "A great company grows without sacrificing quality."

During his tenure, Mr. Lampert cannot claim to have achieved growth, nor has he avoided sacrificing quality. Perhaps it's time he looks in the mirror and tells the CEO of Sears Holdings that he's fired.