THE VIRGINIAN-PILOT
Copyright (c) 1997, Landmark Communications, Inc.
DATE: Thursday, January 23, 1997 TAG: 9701230366
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY STEPHANIE STOUGHTON, STAFF WRITER
DATELINE: WILLIAMSBURG LENGTH: 63 lines
The suits at Sears, Roebuck and Co. thought they were in the ``dirty fingernail'' business, catering to the middle-age man who spent Saturdays puttering through the store hardware and auto sections.
But when Arthur C. Martinez took over Sears in 1992, he quickly corrected course. It was she who was making most of the shopping decisions at Sears. And it was she who had grown increasingly annoyed with the company's neglected stores and unstylish apparel.
``They would talk about being frustrated in their experiences,'' Martinez, chairman and chief executive officer, said after a speech Wednesday at the College of William and Mary in Williamsburg. ``They were willing to give Sears a second chance, but they were continually frustrated.''
Today, women are no longer shunning Sears.
The Hoffman Estates, Ill.-based company, which had a $3.9 billion loss in 1992, earned $1.8 billion in 1995. And last year's results, which are scheduled to be released today, will not disappoint Wall Street, Martinez promised.
On Wednesday, the college's business school recognized Martinez for his efforts. Martinez received the School of Business Administration Medallion. Other recipients have included Sam Walton, founder of Wal-Mart Stores Inc., and Richard L. Sharp, chief executive officer of Circuit City Stores Inc.
``When Arthur came to Sears in 1992, by any measure, the company was floundering,'' said Larry Ring, a business professor at William and Mary who has known Martinez for about 10 years. ``Today, Sears is back.''
Ring and others credit Martinez for making one of the biggest turnarounds in U.S. corporate history. Under Martinez, Sears repositioned its merchandise, renovated stores and changed its image. Customers also have been invited back into the stores with the ``the softer side of Sears'' ad campaign.
Sears has about 800 department stores, including three in South Hampton Roads. The stores in Chesapeake Square Mall, Chesapeake's Greenbrier Mall and Virginia Beach's Pembroke Mall were revamped in 1995.
But Martinez says he's not finished. He wants to keep Sears on its toes - and away from the arrogance that contributed to the company's decline in the '80s and early '90s.
``Our next chapter is to turn ourselves into a growth retailer,'' he said. ``We're pushing for more than the traditional department store in a regional shopping center.''
Already, the company operates about 100 neighborhood hardware stores and 100 HomeLife furniture stores.
It's unlikely, however, that the HomeLife division will be expanded in the near future. Martinez says he's displeased with the furniture stores' performance and has put growth plans for the division on hold until he sees improvement.
Martinez alluded to two new kinds of stores that Sears will debut this year or next. He provided few details, except to say that they wouldn't resemble Sears' traditional department stores.
``It will be a different proposition,'' he said, smiling. ILLUSTRATION: Color photo
IAN MARTIN/The Virginian-Pilot
Arthur C. Martinez, chairman and chief executive of Sears, Roebuck
and Co., spoke Wednesday at the College of William and Mary. He also
received an award from the business school.