Here Comes Chicken Man, to Head Sears Stores

Sears, Roebuck and Co. (Hoffman Estates, Ill.) has named former KFC executive Mark Cosby as president of full-line stores. He will lead all aspects of the full-line store organization, including merchandise, operations and supply chain, effective Dec. 1, 2002, reporting to Sears chairman and ceo Alan Lacy.

Cosby had been cfo of KFC, U.S.A. (Louisville, Ky.) since 2000, leading company and franchise operations for the fast-food and restaurant organization's 5300-unit chain. Prior to that, he was chief development officer for Tricon Global Restaurants Inc. (now Yum! Brands, Louisville), heading development and execution of a business strategy for 17,000 KFC, Taco Bell and Pizza Hut restaurants. He had earlier held a series of senior executive positions with KFC/PepsiCo, after joining PepsiCo's Taco Bell division in 1988.

Cosby's position is newly created, marking the first time Sears has put one executive in charge of its entire retail division. According to a report in Crain's Chicago Business, the struggling retailer had been looking for a top merchant to oversee company stores so that Lacy would have more time to spend on the fragile credit card operation, which accounts for more than two-thirds of Sears'profit

“Mark's appointment fulfills my objective to bring all aspects of the full-line stores under the leadership of a dynamic and experienced executive with proven successes in strategy and operations at leading national, consumer-driven companies,” Lacy said.

But Crain's noted that some analysts aren't impressed with Sears'choice of an executive with no retail experience. “There are obvious differences between KFC and Sears,” said one. “There are many more moving parts when you're dealing with a department store. The operation is much larger, and there are so many more brands to manage.”

The analyst also noted a recent trend in executive turnover in critical departments at the nation's fourth-largest retailer. In October, Sears tapped former cfo Paul Liska to take over the department store's troubled credit card and financial products business, following Lacy's dismissal of Kevin Keleghan. “The bottom line is that this brings more uncertainty,” the analyst told Crain's. “Now there are new people on the credit and retail sides.”

A Sears spokesperson acknowledged that Cosby's background lies exclusively in the restaurant business, but she told Crain's that Sears thinks he will bring a fresh perspective on retailing and will help develop strong brand identity. “Alan (Lacy) has been looking for someone with broad experience in leading a national consumer-driven company,” she said.