to whoever posted this I thank you so much. It is so hard to go through everyday feeling ignorant of the why. I can wrap my brain around it now that you explained that way and I feel some better for knowing the reasons for the stupidity at store level everyday. I still have a problem with knowing that my efforts are futile. I knew it already. perhaps I should not feel so bad about things I can not change. Thanks for making it easy to understand. Goodnight and God bless! (Red Skelton)
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Lampert didn't get involved initially in Kmart by buying the stock. He bought their debt (bonds) as they were struggling and then as they went into bankruptcy, he forced them to cancel the old Kmart stock and give a large share of the company to him as payment for the debt. Later on, he talked Alan Lacy and the other heads of Sears into merging with him as they were also struggling.
Since Eddie made his fortune entirely as a trader (I hate to even consider this guy an investor) he really has no concept of operating a real world business. To him it's all a matter of financial games and manipulation, designed to give him a return on his money. Over and over he's objected to reinvestment in the retail stores, since his return would be uncertain. When it comes to retail strategy, he knows nothing but cutting costs and dabbling in a few goofy programs, such as SYWR. He likes SYWR not because it's something the customers really want, but it fits his vision (actually delusion) of a high tech, high profit, low cost operation. The stores are in such dismally bad shape because these idiots keep cutting costs, even as sales and profits fall through the floor.
This process actually started at Sears long before Eddie Lampert got involved. But he has definitely taken it to extremes. He is putting the last nails in the coffin.