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data on African American consumers
Black Buying Power:
$656 Billion (2003)
Black U.S. Population:
Top Five Black Cities
- New York
Top Five Black Metros:
- New York-New Jersey
- Los Angeles
Top Five Expenditures:
- Housing 145.2 bil.
- Food 56.5 bil.
- Cars/Trucks 32.6 bil.
- Clothing 23.0 bil.
- Health Care 18.0 bil.
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Shakeup at Sears Holdings
elevates Aylwin Lewis to CEO
8, 2005 - AP) Sears Holdings Corp., the No. 3 U.S. retailer, named Aylwin
Lewis to replace Alan Lacy as chief executive on Thursday and reported a
$161 million profit from its first full quarter following Kmart Holding
Corp.'s acquisition of Sears, Roebuck & Co.
The second-quarter results reflected continuing
sales declines at both chains and fell well short of Wall Street's
expectations. The company's stock dropped after the news.
Chairman Edward Lampert named Lewis, the former
head of Kmart and of Sears' retail business, to take over as CEO and
president of the Hoffman Estates, Ill.-based company effective Sept. 30.
He will have responsibility for the company's 3,900 stores as well as home
services, finance, legal, supply chain, information technology and human
Lacy headed Sears, Roebuck & Co. from 2000 until
its March acquisition by Kmart and was CEO under Lampert for the past six
months. He will continue to serve as vice chairman and a director, and as
a member of the office of the chairman.
"Alan, Aylwin and I believe these changes will
achieve greater clarity in our operating management and align this
corporate structure with our vision of Sears Holdings," Lampert said in a
statement. "Our goal is to build one company with multiple ways of
connecting with our customers, including our various store formats, online
offerings, service relationships, and credit products."
During his tenure, Lacy overhauled the layout and
inventory of Sears' full-line stores, bought the Lands' End specialty
catalog and sold the credit division to Citigroup. But he was unable to
stem Sears' long-term sales slump.
Sears' second-quarter net income grew to $161
million, or 98 cents per share, from $154 million, or $1.54 per share, a
year ago. The latest period includes $42 million of restructuring costs
related to the merger.
Analysts polled by Thomson Financial were
expecting earnings of $1.36 per share.
Total revenue rose to $13.19 billion from $4.8
billion last year, due primarily to the addition of Sears Roebuck revenue
of $8.6 billion. Kmart revenue decreased due to a reduction in the number
of stores and a decline of 0.3 percent at stores open at least a year,
also known as same-store sales.
Sears Roebuck domestic sales declined 3 percent
for the quarter, with same-store sales down 7.4 percent despite strong
home appliance sales. The company attributed the drop to efforts to
improve gross margin by reducing reliance on promotional events and
reducing inventory levels to lower costs.
Despite the drop in Kmart's same-store sales, the
company said the decline has lessened and several businesses, including
apparel, had positive same-store sales during the quarter.
Sears Holdings said about 20 Sears and Kmart
stores and facilities located in Louisiana and Mississippi were damaged by
Hurricane Katrina. The company expects the majority of any losses to be
covered by insurance.
Sears shares fell $6.42, or 4.8 percent, to
$128.43 in early trading on the Nasdaq Stock Market. The shares began
trading March 28 at $131.05 and peaked at $163.50 in July.
Click here for Retailing
Annual Edition Available
'Buying Power' report reveals surge by black households for consumer
tighter economic times, African-American households are significantly
increasing their expenditures on consumer electronics for the home,
according to the newest edition of The Buying Power of Black America
report. In many categories such as video games, televisions, CD players,
cable TV service and sound equipment, black households are spending more
on average than their white counterparts.
According to the 103-page report, black households had $656 billion in
earned income in 2003, an increase of 3.9% over the $631 earned in 2002.
Read more and
see the latest expenditure figures for black consumers
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