Sears’ chairman: company will be ‘unrecognizable’ in next 5 years as innovation continues

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Lampert: Sears ‘unrecognizable’ in 5 years

HOFFMAN ESTATES, Ill. — The financier who leads Sears Holdings Corp. said Tuesday that the retailer is gearing up to revamp merchandise and services in its stores, while boosting its Internet business.

Sears hopes that two-pronged approach will continue the momentum it gained during the recession as it boosted its profit while cutting expenses.

“Five years from now, I believe this company, to some people, will be unrecognizable comparedto what the company was 20, 30 or 40 years ago,” Chairman Edward Lampert said to a crowded room of investors during an annual shareholder meeting.

Based in suburban Chicago, the retailer owns Sears, Kmart and Lands’ End along with popular brands like Craftsman, Diehard and Kenmore. But it’s increasingly focusing its efforts toward the Web, with its revamped Web site, added emphasis on social media and mobile phone applications that allow customers to grocery shop from their cell phones.

Lampert spent much of the nearly three-hour presentation — typically the only time each year he speaks publicly to shareholders — talking about Sears’ online efforts.

Standing behind his Mac laptop, Lampert clicked through Sears’ Web site to search for sunglasses (his search on Sears.com turned up more than 67,000 items, which he declared “probably more than enough.”) and used an iPhone app to order Cheerios, Kleenex tissues and allergy medicine that could be delivered to his home.

“It’s not just us broadcasting to customers any more, he said. “It has to be interactive, and it has to be relevant.”