Calvin McDonald leaves as retailer continues to attempt revival.
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| Calvin McDonald |
In a surprising new development, Sears
Canada has announced that its CEO Calvin McDonald is leaving the company.
McDonald, a former executive at Loblaw, spent two years at Sears working to
revive the ailing retailer by focusing on the so-called “hero” categories of
appliances and apparel. Under his watch the retailer sold leases to several
high profile stores (paving the way for Nordstrom’s entry into Canada).
Sears has been struggling as it loses
market shares to a host of rivals and is being squeezed in the middle of the
market. At the lower end it has encountered intense competition from
discounters Walmart and Target (which has been rolling out stores across
Canada), and at the higher end to a newly resurgent Hudson’s Bay.
McDonald is being replaced by former Sears
COO Douglas C. Campbell, who first joined Sears in March 2011. He is a former
principal with Boston Consulting Group and has experience in many sectors including retail, manufacturing, and
pharmaceuticals.
"I am excited about the opportunity to
lead a company with such a great brand and history, and to continue to improve
the performance of Sears," commented Campbell. "I am eager
to move us forward, to work closely with our management team and to continue to
engage our customers and our 25,000 associates to better serve families and
communities across Canada."
The Globe and Mail is reporting that
McDonald’s departure is tied to a disagreement with Edward Lambert, the chief
shareholder of the US parent company Sears Holdings Corp. over the pace of
change. McDonald is leaving for a position with an undisclosed international
company.
