Not Quite Number One

Well, you can’t fault ’em for not trying!

Those glib handicappers over at Motley Fool have posted the winner of their annual “Ten Worst Stocks” predictions for 2009.

Sears Holdings didn’t quite make the top spot – but the Motley Fool crew did post Edward Lampert and his merry merchants as one of the 10 candidate companies.

As its promoter for top – or bottom – billing pointed out, Sears is sustaining a real double whammy, because as a retailer it can’t seem to turn much of a profit – and retail is hurting bad – and as a real estate play, well, it’s not the best of all times to be in commercial real estate, is it?

Well, maybe it’s not such a bad time, according to this New York Times blog, which says in part: “We all know that there is a nationwide surplus of housing. But there is little if any nationwide surplus of non-residential buildings.”

So it’s possible Eddie L. is smarter than the pack. At least on the real estate side of things. But what about the other side – merchandising?

Merchandising?

Here’s the complete roster of the “Senior Management Team” as posted on the corporate website:

W. Bruce Johnson, Interim Chief Executive Officer and President
Michael D. Collins, Senior Vice President and Chief Financial Officer
William C. Crowley, Executive Vice President, Chief Administrative Officer
Scott J. Freidheim, Executive Vice President, Operating and Support Businesses
Richard Gerstein, Senior Vice President, Marketing
William R. Harker, Senior Vice President, Human Resources, General Counsel and Corporate Secretary
Kevin R. Holt, Executive Vice President, Store Operations
James P. Mixon, Senior Vice President, Supply Chain and Operations
William K. Phelan, Senior Vice President, Controller and Chief Accounting Officer
Stuart C. Reed, Senior Vice President and President, Home Services

Question: Where’s the chief merchant? How about a merchant?

Bruce Johnson was named interim ceo and president in February 2008. His background is in supply chain, with Carrefour and Kmart. The other gentlemen are of similar lineage, with experience in finance, operations, planning – and marketing, in Mr. Gerstein’s case – but no merchants.

So – just because a company operates 3,800 retail stores does not necessarily make it primarily a retail company. Just because a company offers brands like Lands’ End, Jaclyn Smith, Joe Boxer, and Cannon does not necessarily make it primarily a merchandising enterprise.

I’m not sure what Sears Holdings primarily is. But maybe its primary business is not merchandising.

The primary business of Sears Holdings could just be “holding.”