Thu
May 20 2010
11:14 am

Nowhere on Tennessee gubernatorial candidate Bill Haslam's campaign website bio or resume is there any mention of his brief stint with Saks Fifth Ave. His 'about' page mentions that he's a "remarkable business leader," but doesn't mention that he was President and CEO of Saks Direct, the company's failed e-commerce venture.

With presumably little or no knowledge or experience in e-commcerce, it's not clear how he landed the job in the first place. One could speculate that he was being "kicked out of the nest," so to speak, to get some non-family related business experience as part of his grooming for a career in politics. One might also speculate that Saks was chosen because of local ties with Proffitts, which had acquired Saks. The chairman and CEO of Saks at the time also served on Pilot's board. [1]

At any rate, the company did not fare well during Haslam's tenure as head of e-commerce. Shares in Saks stock fell from $35 in January of 1999 when he was hired to $11 in June of 2001 when the company announced they were "restructuring" the e-commerce division. Saks shareholders lost 68.5% of their investment during the period. [2]

In their FY 2002 10-K annual report, Saks management says the company took "$35.1 million in charges associated with the reorganization of Saks Direct (SFAE's catalog and e-commerce operations)" associated with "a write-down of goodwill, property and equipment, and inventory, and employee severance costs." [3]

In a press release statement about the restructuring, Saks said "Approximately 50 corporate positions will be eliminated between June 2001 and February 2002 as a result of the Direct restructuring, with additional reductions occurring by the end of the first quarter of 2002 in the fulfillment and call center operations. The Company will take certain charges for severance and the liquidation of catalog and e-commerce specific inventory, as well as certain non-cash charges, beginning in the second quarter of 2001." [4]

Soon thereafter, Haslam returned to Knoxville to run for Mayor.

Wes Hartline's picture

E-Commerce

Do you want to provide some data that shows that e-commerce exploded onto the scene and did remarkably well? You probably couldn't find much if you even bothered to check.

That "Dot-Com" boom and bust everyone read about in the early 2000's wasn't a joke. Saks had a terrible online experience because that wasn't their business model. It had little to do with Mayor Haslam. Without any background information on the industry or the economic challenges during those years, you aim to make Mayor Haslam look like a business failure. Without any baseline to measure against, it's a blanket statement with no proof.

Thanks for a wasted article.

Chuck's picture

I don't see how this is a

I don't see how this is a "wasted" article, instead I see it as a fleshing out of the resume of the person who wants to be our next Governor. Personally, I like Mayor Haslam and think he would do a good job as governor, but it is important to know about the person who is asking for our vote. For example, we had an abject failure as President for 8 years who kept telling us that he was going to be the "CEO President", but who didn't tell us that every business venture he ever touched became an abject failure. We see how well that worked out for us.

I think that this information shows us that Haslam hasn't been bailed out of every situation he's been in, and is not afraid to try things even if it's outside of his comfort zone - that's a good thing. On the other hand, not acknowledging one's failures and what you learn from them - that's a bad thing.

Rachel's picture

What Chuck said.

What Chuck said.

Anonymously Nine's picture

,

"Saks had a terrible online experience because that wasn't their business model. It had little to do with Mayor Haslam."

It had to do with the fact that over an eighteen month period the Saks e-commerce website was a complete failure. Blaming the dot com bust is a convenient simpleton excuse.

Haslam was not the person for the job. He had almost no IT or e-commerce experience. He was in over his head and couldn't manage the tasks before him. Poor hires, poor management, lofty and goofy ideas sucked up the time that should have been devoted to making the site work.

Everyone in e-commerce knows to secure every single name that sounds like the website name. Everyone but Bill Haslam. Consider the case of saksfithavenue.com.

(link...)

How do you lose a case like that? How do you even have that problem? Kids in high school back in 1999 knew to secure every single name that sounded like the website. It was common sense.

Being Governor is a lot like being called on to run Saks online e-commerce. No one person knows everything there is to know about running a state. You hire and manage people who do know. Looking at the Saks debacle and the Ten Year Plan debacle can you really say that Bill Haslam is ready to run this state?

Wes might ask, do you have an example of one of those goofy ideas?

(link...)

360 views while good for cars are pretty dumb for dresses. A front view and a back view are all that is needed. In addition, the 360 view was painfully slow so no one used it.

Bike Bitchell's picture

We prefer Wamp,

don't we, brotha?

R. Neal's picture

@wes hartline: Do you want to

@wes hartline: Do you want to provide some data that shows that e-commerce exploded onto the scene and did remarkably well? You probably couldn't find much if you even bothered to check.

Source

lovable liberal's picture

OK, then.

Somebody had to hit that.

Arnold Goldman 's picture

Haslam is a phony

what rock did you come out from under. On line is NOT their business model? oh yeah right....then why do they post nearly 30% of their revenue as "online". Simple fact ..Haslam is a rich guy who was born with a 24kt gold spoon in his mouth. Left to his own devices he couldnt run a lemonade stand much less a state. His whole candidacy is a joke and he is about to be exposed as a liar and a fraud.

Andy Axel's picture

Left to his own devices he

Left to his own devices he couldnt run a lemonade stand much less a state. His whole candidacy is a joke and he is about to be exposed as a liar and a fraud.

And this from a Wamp troll, no doubt. Priceless.

Independent Tennessean's picture

Lazy Wes

Wow Wes. What's funny is after all that criticism of Neal's article, your counterpoints weren't even researched. So you offered a rebuttal that was incorrect and not based on any facts at all, just stuff you vaguely remembered? Weak.

Hapax's picture

Still an enigma after all these years

I never figured out why Proffitt's bought Saks. While business is business, the high fashion world has a customer base that is very quirky, moves fast, and is complex to deal with. I have always thought that Proffitt's was buying into a large market segment that they did not understand.

R. Neal's picture

I never figured out why

I never figured out why Proffitt's bought Saks.

Sort of off topic, but me either. Good point about the different markets. A NY company selling $500 Italian t-shirts with sparkles being managed by a company that I guess considered themselves an "upscale" department store brand (and I guess it was for Tennessee) doesn't seem like a good match. And the fallout ruined a bunch of good department store names in the process.

I guess maybe there was also a shakeout in the industry during all that time, with price conscious buyers moving to Target, K-Mart, and Walmart.

marytheprez's picture

Haslam's ideas on strengthening public education

is much more troubling than anything in his past business life.

He was quoted recently that his new ideas included promoting charter schools (private schools), vouchers for same, parents' choice (where they would take their kids out of public schools) and/or home schooling (which may work sometimes, but...)this also takes away revenue and parent support for public schools.

The vouchers and charter schools scheme was just another way to say "NO Child Left Behind". But the devil in the details included building these private schools, offering parents of low-income kids a voucher to remove their kids from public school and enroll them in a charter school. HOWEVER, these vouchers were time limited. If the child could not catch up or achieve success after a semester or two, he was 'transferred back to public school for that reason OR because the parents could NOT afford the charter schools' tuition.

I think I read that Haslam and his children attended private schools, like Webb.

This is a real concern since his stand on raising ANY tax to support public education is, and will always be, NO.

I don't care about his lack of direct business experience. I do care about his expertise or lack of, an understanding about how public schools get funding and how he plans to increase that funding!

Allison's picture

There are jobs in my younger

There are jobs in my younger days out of college, that were just not a good fit. I realize that Bill Haslam choose to stay in college, and work, while the other candidate dropped out of college, and has mug shots and lots of drug use. In Chattanooga, while we are still waiting on the Chickamauga Dam lock project, we think Gov. Haslam is a smart choice.

Pam Strickland's picture

Have you. got evidence of

Have you. got evidence of these claims you make about the other candidate?

Bbeanster's picture

Have you. got evidence of

Have you. got evidence of these claims you make about the other candidate?

Zach Wamp's mugshot has been standard political fare in Tennessee since he surfaced in 1994. Google Zach Wamp cokehead or Zach Wamp cocaine or any such combination.

Pam Strickland's picture

Thanks. pgs

Thanks. pgs

Pam Strickland's picture

Thanks. pgs

Thanks. pgs

Alicia's picture

Yes, Bill Haslam is the best

Yes, Bill Haslam is the best choice for governor. Your article failed to mention that this candidate has the only proven track record of municipal budget development. The municipalities are where the rubber meets the road, in Tennessee, and Washington Wamp does not have a clue. Call me old school, but I strongly believe that the leader of the state should atleast have a college degree and no mug shoots. Zach Wamp is simply ridiculus, I cannot ever imagine him running our state.

So, Vote Bill Haslam for Gov.

Ed's picture

Yep, your right! The next

Yep, your right! The next gov of Tennessee should be a college dropout, and a member of C-Street, just google that one, Wamp and C, and YIKES!

Anonymously Nine's picture

.

"Yep, your right! The next gov of Tennessee should be a college dropout, and a member of C-Street, just google that one, Wamp and C, and YIKES!"

What is wrong with Mike McWherter's experience? He is head and shoulders above Bill Haslam.

All the Haslam plants that come here and act like it is either Haslam or Wamp are disingenuous. Mike has a law degree from Vanderbilt University. He has run a business. Has Haslam? After what Big Jim has done for Knoxville I don't want that spread to the state.

Fred's picture

Bill Haslam is the Right Man for the Job!

All,

I have known Bill almost my entire life, and I must say you will not find a better man - in any state. He is a true blue Tennessean and cares so much for all the people in this great State. OK - he is a politician, but he is a Christian, and a good family man FIRST!

So Saks Direct was not a real positive on his resume. But how many people were hurt in the dot.com bubble bursting? I know I was. And Bill left honorably - and his record is all there for anyone to see. Saks Direct was a very short and temporary side bar to what is a great career progression. Bill is a "real" person - and all of us have our ups and downs. That should be appealing about Bill.

How many other candidates have his executive skills running a Multi-billion dollar company with literally thousands of employees and running a town the size of Knoxville? Bill has been hugely successful at both! And we will be extremely fortunate when he becomes our Governor.

I know he is a great man, and he will do remarkable things for our state as Governor.

Fred

Victor Ashhe's picture

Haslam sells cigs, booze and gambling...some Christian

yeah he's a Christian all right. anybody can cal themselves that. But does he live what he preaches...lets eee...he gets 50 million dollars a year from Pilot Oil. What does he sell to get his 50 mil
1. Cigarettes that deliver a long, slow and costly death.
2. Beer....drunk drivers kill thousands of innocent people a year....some of THEM Christians.
3. Lottery tickets...a tax on stupid people.
4. Oil...think Pilot..think Gulf Oil spill..think Pilot think Cigarettes..think Pilot..think drunk drivers....think poluution on a grand scale think Pilot....
It wouldnt surprise me in the least if they werent into other things but lets not go there now. lets just look at the facts.
Haslam worked for Saks 5th ave. A world class brand with stores everywhere. what did he do? built an ecommerce site that was shut down because it was a bad business idea. what does saks and all the other retail stores do now...they use their local presence as an advantage...let you buy online and pickup at the store....pretty simple. whos idea was this? Not Haslams...he spent 35mil on a harebrained internet strategy when he had the real solution in his back pocket. THIS alone is enough to eliminate him from leading ANYTHING bigger than a small town. this is a complete lack of awareness of your surrounding. Yeah he may call himself a Christian but thats what they all do. Look at what he does...I dont know many Christians that make their money on booze, gambling and Cigarettes but Haslam does. No wonder he wont release his taxes....he would be sunk once that hits...he's just another liar as far as Im concerned.

bizgrrl's picture

Where'd all these people from

Where'd all these people from the Haslam campaign come from?

lovable liberal's picture

Campaigns are learning that

Campaigns are learning that they have to do this sort of blog bombing. It's like lawn signs - they don't win many votes, but they help you hold onto votes you might lose if you left the field wide open to critics and opponents.

I think the campaign of Gov. Deval Patrick (D-Mass.) is doing this too, although somewhat more subtly, in the comment threads of the Boston Globe.

whooshe65's picture

I have been a Business

I have been a Business Manager most of my life, and have started and run two Businesses.

If a Job applicant submitted an application for employment with me, and I found out that he had failed to disclose this kind of information.

He would never had been hired, and I would have shown him the Door. Knoxville and Tennessee needs to show Bill Haslam the door.

Shame on you Bill Haslam.

Fred's picture

Where did I come from?

OK - so I support Bill...is that a problem? I think he is a great guy. I know him, and he would absolutely be one of the best Governors we ever had.

I don't mind telling anyone who will listen or read it.

F

whooshe65's picture

Fred,If you consider the

Fred,

If you consider the total and absolute abandonment of his responsibilities as Mayor, to be a Good thing, than I guess you are right.

He is surrounded by his handlers that tell him that everything is alright. He can’t make a decision on his own. He is the supreme delegator.

His handlers told him that he should make a campaign commercial with a rip off of the Travelers Insurance Umbrella in it and that he use the phrase “he built a lot of Truck stops, Good Ones" in the same advertisement.

Dude, you need to wake up and smell the coffee, Bill Haslam can’t decide what socks to put on in the morning without his advisors helping him. No State needs him as Governor, especially Tennessee.

wakeup's picture

disappointed

Ok, I gotta say, I am disappointed in ALL the candidates taking time off from the jobs they've been elected to do in order to run for governor. Not just Haslam as Mayor which is the one we hear most often, but Wamp has taken a large percent of time off, missed votes, etc, which is very important at this time in Congress, Ramsey has taken time off from being Lt. Gov and out of the Senate in order to have events, kick offs and meet and greets,etc Before Gibbons dropped out, he'd done the same thing, as well as had McMillan. seeing as how the terms line up, it doesn't appear there's really any other choice but to run for one while you still have the other. I will say I think their FIRST priority SHOULD be to the job they have already been elected to do.

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