Although Proffitt’s Inc. chief executive R. Brad Martin has been highly successful at building a retail empire, his first love is politics.
Two days after he turned 21, Martin was elected to the Tennessee legislature, its youngest member ever. Years later, he was a big backer of George Bush’s presidential campaigns. More recently Martin was the money man behind former Tennessee governor Lamar Alexander during his ill-fated run for the Republican presidential nomination.
Alan Millstein, a New York retail consultant who has worked with Martin, predicts that Proffitt’s proposed acquisition of Carson, Pirie Scott & Co. puts Martin another step closer to getting back into politics himself–this time at the national level.
Once Martin has polished his regional retailing powerhouse, it’s likely he’ll sell out to either Federated Department Stores or May Department Stores, the two biggest national players, Millstein believes. As Proffitt’s second-biggest shareholder with almost 5 percent of its stock, Martin would have a big campaign war chest to work with.
Despite his ambitious nature, Martin is a truly considerate human being, Millstein says. A year ago, Millstein traveled from New York to Memphis via Chicago to have lunch with him.
When the meal was over, Martin excused himself, saying he had to cut the meeting short because his father had died that morning. But he hadn’t canceled the meeting because he knew Millstein already was en route. “I couldn’t speak,” recalls Millstein. “Then he left to arrange his own father’s funeral.”
Betting on Santa: Michael J. Smith, the chief executive of catalog giant Lands’ End, is ready for Christmas. The bins at the company’s Dodgeville, Wis., headquarters are bursting with inventory, and 2,600 seasonal employees have been hired. “Now we’re waiting for the phone to ring,” he admits.
Last year, a big surge in third-quarter sales meant the cataloger was out of stock on more items than Smith was comfortable with. Lands’ End aims to be able to fill 90 to 92 percent of incoming orders right away, perhaps the most ambitious target in the industry.
In 1995, the company did well, hitting 90 percent. But last year Lands’ End fell short, filling only between 86 and 88 percent of new orders during the critical fourth quarter.
“We felt we couldn’t afford to disappoint people again,” said Smith, 37, whose choice as CEO two years ago was a surprise because of his age and lack of experience outside the company.
Of course, being inventory-heavy heading into the holiday selling season is a risk. Last year, Christmas was a disaster for most retailers, and lots of goods had to be marked down in January. But not Lands’ End. “We had a very good Christmas last year, and it wouldn’t be bad just to repeat that,” said Smith.
But instead of agonizing over Christmas, Smith and other Lands’ End execs spend a lot of time devising fun holiday activities for customers that aren’t intended to make any money.
Like the toll-free telephone number that kids can dial to get updates on the battle between Santa Claus and Jack Frost. Or the Lands’ End Web site where customers can track the travels of peripatetic founder and Chairman Gary Comer.
When his finance people ask Smith how much it costs to put a jingle bell in each gift-wrapped holiday package, he tells them he doesn’t know–or care. “It’s the right thing to do,” he said.
Smith can afford to be nonchalant. Since he took the helm two years ago, Lands’ End’s stock price has doubled from the mid-teens to more than $30 a share.
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