Sears Canada CEO resigns as retailer works on turnaround

Tue Sep 24, 2013 1:50pm EDT
 
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(Reuters) - Sears Canada Inc (SCC.TO: Quote) Chief Executive Calvin McDonald has resigned just as the department store chain restructures amid intensifying competition from U.S. retailers such as Target Corp (TGT.N: Quote) and Wal-Mart Stores Inc (WMT.N: Quote).

Chief Operating Officer Douglas Campbell will become CEO with immediate effect, Sears Canada said, adding that McDonald is joining an international company it did not identify.

The Globe and Mail newspaper, citing sources familiar with the situation, said McDonald's departure was sparked by differing views with U.S. parent Sears Holdings, controlled by investor Edward Lampert.

The disagreement was tied to "the pace at which capital was being deployed to keep the momentum of the transformation going," the newspaper quoted the source as saying.

Vincent Power, Sears Canada's director of corporate communications, declined to comment directly on the reports.

"I do not know of those differences...I say it is just speculation, it is nothing I comment on because it's not facts that I am aware of," Power told Reuters.

Sears Canada, 51 percent owned by Sears Holdings Corp (SHLD.O: Quote), announced a three-year plan in 2012 to reclaim lost market share that included making radical changes to its pricing strategies and sprucing up stores.

The company posted its 18th quarterly fall in revenue in the second quarter.

Sears Canada also closed two high-profile stores in the Toronto area and sold back the leases earlier this year.   Continued...

 
People walk past the main Sears store in downtown Vancouver, British Columbia February 23, 2011. Retailer Sears Canada Inc posted a 28 percent drop in its quarterly profit, hurt in part by lower demand for appliances. REUTERS/Andy Clark