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A restaurant veteran assumes one of retail's hottest CEO seats
With the arrival of CEO Aylwin Lewis, the Kmart story just got even more compelling. Lewis, who was appointed CEO of Kmart in mid-October, joins a very small fraternity of retail chief executives with backgrounds in the restaurant business.
In addition to breaking through barriers for restaurant executives, Lewis -a highly respected leader at Yum! Brands-will gain even more attention for breaking down barriers of the racial variety. He's the highest-placed black executive in retailing, and among the highest in the country.
With the late-breaking Sears-Kmart merger (see page 35), Lewis takes the post of president of Sears Holdings and CEO of Kmart and Sears Retail.
Even without the social implications of Lewis' arrival at Kmart, the retailer's story is a drama fit for Hollywood-with powerful foes, hidden treasure and a riches-to-rags-to-riches plot.
After being counted down and out by many in 2003, Kmart has emerged from bankruptcy and recorded three straight profitable quarters. In the meantime, Wall Street and investors have taken a hard look at the chain's real estate holdings (the hidden treasure), and many think its best strategy is to sell its holdings piece by piece. The company's stock has more than quadrupled throughout 2004-breaking the $100 per share barrier recently-as investors warmed to the real estate play.
And of course: The company's comeback trail pits it squarely against WalMart Stores at every turn.
Into this mix comes Lewis, the 50-year-old Texas-born executive who carried the nickname "Coach" at Yum! Brands. He declined to speak with Chain Store Age for this article, but in a statement he spoke of "operational excellence," and gave no impression Kmart should be confused with a real estate company first, retailer second.
He told the Detroit News: "Kmart is a great brand in America. The hallmark again is to make the stores the...