Sears Holdings announces CEO is stepping down

The company, which operates Sears and Kmart stores, said D'Ambrosio will be replaced by company chairman and its largest shareholder, Edward Lampert. D'Ambrosio will remain on the board until the company's annual meeting in May.

The nature of the health issues affecting D'Ambrosio's family was not disclosed.

In a statement, Lampert said D'Ambrosio led Sears Holdings during a time of rapid industry change to become a more customer-focused company. Changes implemented under D'Ambrosio include giving sales staff almost 15,000 iPads and iPod Touch devices so they can research products and help customers check out wherever they are in a store. It's also improving displays and adding more high-tech washing machines and other appliances.

"The board greatly appreciates Lou's strong leadership in accelerating the transformation of Sears Holdings, and we understand and respect his personal decision to step down," Lampert said.

D'Ambrosio became Sears Holdings CEO in February 2011. He was previously president and chief executive officer of Avaya Inc., a communications company. Before joining Avaya, D'Ambrosio spent 16 years at IBM Corp.

Sears Holdings has been plagued by a yearslong decline in sales at its Sears and Kmart stores.