So Alwyn Lewis is out at Sears.  Not really suprising.  About 8 months ago I had dinner with an employee at SHLD who reported directly to Eddie Lampert.  The employee confided to me that while everyone knew what Alwyn was brought in for, the general consensus was that no one knew what he was doing or what his responsibilities were. He seemed to be a guy just “floating” out there with no real focus or impact.  

Was that Alwyn’s fault? Absolutely not.  I believe he was extremely qualified to help turn Sears around.  I also believe that they will not find anyone out there more qualified to replace him.  I also believe that even if they do it won’t matter…. Why? The problem was not Alwyn.  The problem was Eddie Lampert’s total lack of understanding of retail and how to delegate.  He did not have that understanding then and unless he has undergone an epiphany in the last few months, there is no reason to believe anything will change no matter who he sticks in there.  

Eddie is about control.  Eddie is about spreadsheets, data, algorithms, stock buybacks, numbers hocus-pocus, Ivy League MBAs, advance teams before he goes anywhere, posses, and entourages. In other words, he is completely out of touch.  In all fairness to him, he didn’t suddenly one day lose touch.  All those things he is about have made him a huge success in the hedge fund numbers crunching world where you don’t have to leave your office and don’t have to talk to anyone but the crunchers…….

Until Eddie is ready to be a “regular guy” talking to “regular customers” the only big change at SHLD will be when he unloads bits and pieces and finally dumps…..