EVERY LAST PENNY; After attacking costs, Lampert says he wants to grow Sears. Investors are waiting.(Edward S. Lampert)

Crain's Chicago Business, March, 2007 by Fields-White, Monee

Byline: MONEE FIELDS-WHITE Hedge fund manager Edward S. Lampert has proved to investors he can wring profit out of a moribund retailer. Now they want to see how he's going to build Sears Holdings Corp. While store sales have declined, Mr. Lampert, who took over as chairman two years ago when his Kmart Holding Corp.

acquired Sears, Roebuck and Co., has bolstered profit by trimming costs and buying investment securities. That's allowed Mr. Lampert to build a cash hoard of $4 billion, which he has used to repurchase Sears stock and pay down debt, among other things. But the money he reinvests in stores has dwindled: Capital expenditures fell 13% last year to $474 million. The figure is less than half the amount spent by Sears and Kmart before the merger....

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