Ed Brennan is appointed CEO. Ignoring the naysayers, he launches the successful no-fee Discover credit card and shakes up the stodgy credit-card industry.
Pressured by specialty retailers like Circuit City, Sears retools its image again. First stop: Brand Central, a new appliance and electronics department that peddles brands other than Sears’s own Kenmore products. Sears also buys Western Auto Supply, and opens McKids, a chain of children’s stores, with McDonald’s. The company even puts its Chicago skyscraper on the selling block.
To compete with the likes of Kmart and Wal-Mart, Sears adopts a new mantra–“Everyday Low Prices.” It dumps model Cheryl Tiegs as a spokeswoman along with her line of clothes. The tower deal falls through.
After pushing out Michael Bozic (below), Brennan takes command of the merchandise group. Meanwhile, it’s rumored that Sears will merge with Montgomery Ward, a chain run by Brennan’s brother, Bernie.
Everyday low pricing bombs. The problem: the prices were higher than some of the chain’s competitors; like Wal-Mart. Brennan retreats and shifts to a new strategy: “Everyday Competitive Prices.” Never mind.
Sears plans to spin off Dean Witter, which it bought in 1981; auto centers in two states are accused of recommending unnecessary repairs.
After 97 years, the company drops its beloved “Wish Book” catalog. The new merchandising chief, Arthur Martinez, also announces that Sears will close 113 stores and fire 50,000 employees.
Sears sets aside $4 billion to remodel stores, and in an attempt to win over women customers, also launches a flirty ad campaign, featuring snappy puns and even sex appeal. The new slogan: “The Softer Side of Sears.”
