Home
Global Supplier Directory
APPLIANCE Engineer
Supplier Solutions
APPLIANCE Line
Whitepaper Library
Calendar of Events
Association Locator
Contents Pages
Market Research
Subscription Center


 
Daily News

Sears Restructuring May Mean More Job Cuts
Dec 15, 2003
 Printable format
 Email this Article
 Search

Appliance retailer Sears, Roebuck & Co. (Hoffman Estates, IL, U.S.) has begun an internal review that could result in a reduction of jobs at headquarters for the third time in 3 years, Sears officials confirmed.

In a memo distributed to employees, Sears CEO Alan Lacy said a corporate restructuring is under way to give the department store chain a "more focused and efficient corporate structure."

Sears, which has sold its credit-card operations to focus on its retail business, is under pressure, as sales at its stores have declined. During the holiday season, Sears has been forced to lure shoppers with price reductions, which have reduced profit margins.

Job cuts aren't necessarily the goal of the restructuring, but "it's reasonable to anticipate possible reductions as a result of this project," spokesman Chris Brathwaite said.

"We're in a very competitive market, where highly efficient big-box stores are rewriting the rules of competition," Mr. Brathwaite said.

In November, sales at Sears stores open at least 1 year declined 3.6 percent. Analysts had expected sales to be flat or slightly higher.

Sears now has lowered its sales expectations for the entire fourth quarter. Same-store sales are expected to be flat, or down by a low single-digit percentage, for the fourth quarter.

Sears also completed the sale of its credit card business last month, a move that resulted in the need for fewer workers at its headquarters.

Leading the restructuring review is Thomas C. Gorey, vice president of inventory management and merchandise operations. Mr. Gorey is expected to make his final recommendations to Lacy sometime in January.

The company has 4,800 headquarters workers, 9 percent fewer than the 5,300 it had at the beginning of this year. In early 2002, Sears cut about 1,300 of 7,000 jobs. In July, 1999, former CEO Arthur Martinez ordered a 10-percent headquarters job reduction.

"The impact has yet to be determined," Mr. Brathwaite said. But in a "post-credit environment, we're a smaller new Sears." (Chicago Tribune)

Back to Daily News

 

Daily News

...........................................................

Sep 12, 2014: AHRI Suggests Changes to EPA on Proposed SNAP Amendment

Sep 12, 2014: Consumer Confidence Index Up in August

Sep 12, 2014: August 2014 Housing Starts in Canada

Sep 11, 2014: Middleby Acquires Commercial Coffee Machine Producer Concordia

Sep 11, 2014: Electrolux Again Ranked Industry Leader in the Dow Jones Sustainability World Index

More Daily News>>

RSS Feeds
.........................................................
Appliance Industry
Market Research

...........................................................

March 2014: Market Research - 62nd Annual U.S. Appliance Industry Forecast
February 2014: Appliance Magazine Market Insight: December 2013
January 2014: Market Research - Appliance Historical Statistical Review: 1954-2012
January 2014: Appliance Magazine Market Insight: November 2013




 
Contact Us | About Us | Subscriptions | Advertising | Home
UBM Canon © 2014  

Please visit these other UBM Canon sites

UBM Canon Corporate | Design News | Test & Measurement World | Packaging Digest | EDN | Qmed | Plastics Today | Powder Bulk Solids | Canon Trade Shows