Sears Canada chief executive officer Calvin McDonald is stepping down from his post.
The company's chief operating officer, Douglas Campbell, has been promoted to take over his role during the company's multi-year transformation The Toronto Star reported. Retail analyst Keith Howlett of Desjardins Securities told investors in a note Tuesday morning he felt McDonald's announcement would hinder the success of Sears Canada The Star reported.
"Our view was that McDonald was a talented, energetic retail executive and might have been able to accomplish a turnaround against what we perceive as long odds," he said.
According to Howlett, the move is a personal one for McDonald.
"The parting appears to be on amicable terms, and the company indicates that it is the result of a personal career decision by McDonald," Howlett said. "Our speculation is that McDonald may have held differing views from those of the controlling shareholder, Sears Holdings, on the appropriate level of capital spending for store renovations, on the sale of under-market leases back to landlords (Yorkdale, Mississauga Square One and others) and with respect to the outsourcing of head office positions to other countries."
McDonald came on board over two years ago after being brought on to help improve Sears Canada's economic state, and is now leaving to work at a firm with a more international presence. The name has not been released.
The former CEO leaves halfway through his three-year transformational plan for the retailer, which has lost relevance with its main customer base when he was hired from Loblaw Companies in June 2011. McDonald's successor, Campbell a former management consultant and United State Marine joined Sears Canada three months before McDonald and was selected as the company's chief operating officer in November.
William Crowley, chairman of Sears Canada's board of directors said Campbell has already been beneficial to the company..
"Doug's disciplined approach has been instrumental in managing costs and driving efficiencies," he said in a statement The Star reported.
