Business Notes Executive

Even before he joined Sears, Roebuck in 1956 as a salesman in Madison, Wisc., there was little doubt that Edward Brennan would find a home in the company. Working for Sears was a tradition in Brennan's family: both his parents were buyers for the firm, as were a grandfather and two uncles. Brennan, however, rose much farther through the ranks of the largest U.S. retailer. When Chairman Edward Telling, 66, announced last week that he will retire at year's end, it came as no surprise that he named Brennan, Sears' president since 1984, as his successor.

Brennan, 51, will head a firm whose core business, merchandising, has been in a slump. Sears' profits sagged 25% in the second quarter, and third- quarter earnings are likely to be down. Brennan is counting on a credit card that Sears launched last summer to help reverse that trend. Called Discover, the card enables holders to get auto loans, invest in savings instruments and, of course, to shop at Sears. Brennan expects to sign up at least 10 million subscribers. Retailing, meanwhile, still runs in his family. Watching Brennan's progress closely will be his brother Bernard, the president of Sears' rival, Montgomery Ward.