Sears to Cut 800 Management Jobs in Reorganization of Merchandising
The changes in the Sears Merchandise Group, which will close 24 regional administrative offices, are the latest in a series as the nation's largest retailer tries to hold its own in a fast-moving, highly competitive market.
Since October, Chicago-based Sears has put its trademark Sears Tower, the world's tallest building, up for sale, moved to offer more brand-name products and shifted to everyday low pricing.
Thursday's announcement calls for streamlining the merchandise group, which is structured ``horizontally'' with an ever-widening chain of commmand.
The goal is creation of six crisp new operations, with direct reporting and accountability from the retail store to the group vice president - in appliances-electronics, home fashions, home improvement, women's apparel, men's-children's apparel and automotive, the company said.
``I think what is necessary for Sears to be competitive ... given the change in pricing structure ...is to reduce cost of the operation and this a step in that direction,'' said analyst Joseph Ronning with Brown Brothers Harriman Inc. in New York.
``Each of these businesses in Sears stores will report directly to a district manager for that distinct business, who will be accountable for customer service, sales and profits in 10 stores and report to a region manager for that business,'' said Michael Bozic, chairman and chief executive officer of Sears Merchandise Group. …