Check out Sears Holdings Chairman Ed Lampert pledging in a letter to shareholders to take a more conservative approach to inventory in 2008 after last year’s aggressive posture backfired, wrecking the retailer’s earnings and profit margin.

“Unfortunately we did not forsee the severe economic turbulence ahead … 2007 was not a good year in which to operate with increased inventory,” Lampert wrote.

Like many retailers, Sears struggled last year in a marketplace that saw shoppers pull back their spending in the wake of declining home values, rising grocery bills, and higher energy costs.

Sears’ plan took a hit as sales declined, forcing the company to turn to aggressive discounting to clear inventory.

Lampert has no plans of a repeat performance in 2008.

 ”Our current plan is to take a more conservative approach in 2008,” Lampert wrote. “We are currently planning for reduced inventory purchases in 2008, especially in spring/summer and fall/winter season apparel categories.”

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 (Photo: Reuters)