An Indian Girl Scaling a new height in US Corporate World

36 years old Leena Munjal's office on the sixth floor of Sear Holdings Corp's Hoffman Estates headquarters in Chicago is pristine.

Leena Munjal at Sear's Corporate HQ

There's not a single printout by her computer. Instead, there's a white rug, a dark leather sofa and cream throw pillows—all from Sears, of course. The only hint that major work happens here is the whiteboard, with four columns of meticulously organized goals. Ms. Munjal rewrites it every Friday.

That focus, combined with an inviting, down-to-earth demeanor, has propelled the 36-year-old to a top role at Sears—senior vice president of customer experience and integrated retail—and earned her the confidence of CEO Edward Lampert.

There's just one question: Will it work?

As the chief architect of Sears' integrated retail program since September, Ms. Munjal's job is to figure out the secret to “omnichannel” shopping: How can Sears boost sales by letting customers shop whenever, wherever and however they want? That mission has been the company's focus for more than three years—and, according to Mr. Lampert, holds the long-awaited solution to Sears' frustrating decline. 

Even as it culls other holdings, the 127-year-old Sears is pouring time and money into its digital shopping efforts, especially its Shop your way Rewards program. 

The company doesn't have a lot of time to reach an answer. Revenue has declined for six consecutive years. The company lost $930 million in fiscal 2012. Its stock is trading around $46, down from a 2007 high of $200. Last year, Sears shut nearly 100 stores, sold 14 other properties and spun off its Hometown and Outlet businesses.


It connects online, mobile and brick-and-mortar shopping to cater to ever-pickier, more time-starved customers: Buy online, pick up in-store! Buy in-store, have it sent to your house! Or look in-store, but don't buy anything! A Sears associate will email you links to the products you browsed and remind you that he's available to text and track down items while you sit on your couch.

Like other loyalty programs, Shop Your Way lets members earn and spend points for Sears, Kmart and Lands' End merchandise. But it's also a social platform that lets you discuss purchases and matches the Shop Your Way “newsfeed” to your buying habits.

The program, launched in late 2009, is showing signs of traction. Sears' online sales increased by 20 percent in the most recent quarter and 17 percent in fiscal 2012. The company won't provide the base numbers. But Gary Balter, a New York-based analyst at Credit Suisse, estimates that online sales are only 2.5 percent of total sales, or about $1 billion of the $40 billion the 

company pulled in last year.

Leena Munjal with a sales associate at Sears in Hoffman Estates.

 

 The retailer is investing more than $100 million annually into store technology, including equipping sales staff with iPads. Photo: Stephen J. Serio

Today 60 percent of all Sears transactions are completed by members. There are “tens of millions” of them, according to the company, and they're beginning to shop more frequently: Shop Your Way transactions increased 8 percent for the 12 months ended March from a year earlier.

Some experts agree that omnichannel can increase spending by loyal shoppers but say it isn't enough to lure new customers.

“Omnichannel is about making it easier to transact business, but at the end of the day the question remains: Do people want to buy your products or not?” says Jeff Wissink, a management consultant at Navint Partners LLC in Chicago.

Ms. Munjal responds: “Integrated retail not only benefits existing members, but also attracts new customers who value convenience and are looking to shop on their own terms.”

Regardless, the company, oft-criticized for failing to invest in its physical locations, is pouring more than $100 million annually into store technology. Much of that is dedicated to equipping store associates with iPads, which are already in 400 of Sears' 800 stores. More than 1.7 million transactions and $550 million in sales were processed through tablet and mobile apps in 2012.

SHE'S THE ONE

Ms. Munjal's colleagues say she's the right person to drive change. “She's able to lead by influence,” says Bruce Johnson, Sears' interim CEO from 2008 to 2011. “There's a combination of both intellect—she has a mind like a steel trap—and also the ability to work with people in a nonthreatening way and clearly communicate a goal.” 

Taking responsibility for 2,000 Sears and Kmart stores, a 400-person store operations team and 200,000 store associates requires an early start. Ms. Munjal's days begin at 3:45 a.m., when she hops on the treadmill in her northwest suburban Algonquin home. She's at her desk in Hoffman Estates before 7 a.m. for a standing call with Mr. Lampert and other senior management.

It's a far cry from her conservative upbringing in New Delhi. But when her father suffered a serious accident, Ms. Munjal decided to pursue an education. She earned a bachelor's degree in statistics from New Delhi's Hindu College at age 19 and decided to come to the U.S.Rest is the achiever's tale