ontinued to decline, analysts were positive realty sell-off was the only salvation for the company.

Now four-years later the company continues to produce a steady stream of comp-store decreases, although the double-digit drops have calmed to single digits. Although analysts continue to scratch their heads, Lampert’s once again buildin

Every once in awhile someone comes along to rewrites the accepted rules of their business.

Henry Ford rewrote the rules of auto making when he decided to have partially assembled cars move through stationary workers, reversing the accepted way of manufacturing large products.

In 1879, Franklin Woolworth opposed retail rules with his concept of pricing an entire store at a single discounted price – 5 cents. When the store failed to attract customers, closing a few weeks after opening, retail critics said it was proof the concept of a low-priced retail operation would never work. Woolworth would defy their opinions when he opened a second store later that year, adding a second price, 10 cents. The new store was a hit and led to 1,000s of stores under the Woolworth banner and dozens of copycats.

Today, Eddie Lampert is boggling analysts by completely ignoring the leading retail indicator, comp-store sales (a comparison of sales this year to last year in stores open at least a year), and growing his company anyway! Lampert led K-mart Corporation out of bankruptcy, craftily building a cash reserve large enough to purchase rival Sears. Both companies were losing market share at the time of the merger, leading analysts to comment that Lampert would sell the real estate assets of the new company and then liquidate it. As comp-store sales continued to decline, analysts were positive realty sell-off was the only salvation for the company.

Now four-years later the company continues to produce a steady stream of comp-store decreases, although the double-digit drops have calmed to single digits. Although analysts continue to scratch their heads, Lampert’s once again building

his concept of pricing an entire store at a single discounted price – 5 cents. When the store failed to attract customers, closing a few weeks after opening, retail critics said it was proof the concept of a low-priced retail operation would never work. Woolworth would defy their opinions when he opened a second store later that year, adding a second price, 10 cents. The new store was a hit and led to 1,000s of stores under the Woolworth banner and dozens of copycats.

Today, Eddie Lampert is boggling analysts by completely ignoring the leading retail indicator, comp-store sales (a comparison of sales this year to last year in stores open at least a year), and growing his company anyway! Lampert led K-mart Corporation out of bankruptcy, craftily building a cash reserve large enough to purchase rival Sears. Both companies were losing market share at the time of the merger, leading analysts to comment that Lampert would sell the real estate assets of the new company and then liquidate it. As comp-store sales continued to decline, analysts were positive realty sell-off was the only salvation for the company.

Now four-years later the company continues to produce a steady stream of comp-store decreases, although the double-digit drops have calmed to single digits. Although analysts continue to scratch their heads, Lampert’s once again buildin

g a second price, 10 cents. The new store was a hit and led to 1,000s of stores under the Woolworth banner and dozens of copycats.

Today, Eddie Lampert is boggling analysts by completely ignoring the leading retail indicator, comp-store sales (a comparison of sales this year to last year in stores open at least a year), and growing his company anyway! Lampert led K-mart Corporation out of bankruptcy, craftily building a cash reserve large enough to purchase rival Sears. Both companies were losing market share at the time of the merger, leading analysts to comment that Lampert would sell the real estate assets of the new company and then liquidate it. As comp-store sales continued to decline, analysts were positive realty sell-off was the only salvation for the company.

Now four-years later the company continues to produce a steady stream of comp-store decreases, although the double-digit drops have calmed to single digits. Although analysts continue to scratch their heads, Lampert’s once again buildin

company anyway! Lampert led K-mart Corporation out of bankruptcy, craftily building a cash reserve large enough to purchase rival Sears. Both companies were losing market share at the time of the merger, leading analysts to comment that Lampert would sell the real estate assets of the new company and then liquidate it. As comp-store sales continued to decline, analysts were positive realty sell-off was the only salvation for the company.

Now four-years later the company continues to produce a steady stream of comp-store decreases, although the double-digit drops have calmed to single digits. Although analysts continue to scratch their heads, Lampert’s once again buildin

ontinued to decline, analysts were positive realty sell-off was the only salvation for the company.

Now four-years later the company continues to produce a steady stream of comp-store decreases, although the double-digit drops have calmed to single digits. Although analysts continue to scratch their heads, Lampert’s once again building a bankroll as profits are up significantly. Lampert’s position is that producing fewer sales at a higher margin is a recipe for success.

Lampert’s secret to success

Lampert secret to success defies another business belief of traditional management. Lampert is running a discount organization with no discount experience. Traditional logic states plainly that someone is unable to run a company without a working knowledge of that industry.

Malcolm Forbes once said, “Education’s purpose is to replace an empty mind with an open mind.” Lampert knew finances, how to generate profits, and how to produce cash reserves. Yet Lampert’s mind was empty to retailing. As he learned from the best minds at K-mart and Sears, Lampert was able to maintain an open mind as a fertile field for developing a strategy to rejuvenate the company.

His plan, replace low-gross sales with high-gross sales. His formula generates fewer transactions, but still enough transactions to offset expenses. It is almost the exact opposite of the Wal-Mart philosophy. Or is it? Could it be that Lampert is simply refining the Wal-Mart concept?

Consider that Lampert has seriously reduced the number of temporary price reductions, just like Wal-Mart – but with higher entry price points.

Relating Eddie’s success to you

Lampert’s success is only