Sears Holdings has named a new chief financial officer as officials with the retailer provided an update on its plan to turn around the company’s ailing fiscal health.
Rob Riecker takes the CFO spot effective immediately, replacing Jason Hollar, who resigned to pursue another opportunity. He has been with the company since 2005 and has held various senior positions within the company’s financial team.
Regarding the company’s efforts to improve its operating performance and financial flexibility, Edward Lampert, the company’s chairman and CEO, noted that progress has been made but that further action is needed.
“We will increase our structural cost savings target by $250 million on an annualized basis and accelerate our efforts to maximize value from our real estate portfolio, which we believe will improve our financial flexibility as we pursue our strategic transformation,” he said.
To achieve its updated cost savings target of $1.25 billion, the company is closing 92 underperforming pharmacy operations in certain Kmart stores and 50 Sears Auto Center locations, streamlining retail leadership operations for Sears and Kmart and a comprehensive review of its value chain to identify broader opportunities to drive operational efficiencies.
Previously, the company announced the closing of 150 stores, comprised of 108 Kmart and 42 Sears locations, which has been completed.
“Consistent with our ongoing strategy of focusing on our best stores, best categories and best members, we will continue to take difficult yet necessary actions,” Lampert said. “As we sharpen our focus on profitable areas of our business, we will also continue to closely evaluate the longer-term viability of stores where a clear path to return to profitability is not in sight.”
