Overhaul Begins for Merchandise Group at Sears
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CHICAGO — Sears, Roebuck & Co. said Wednesday that it was beginning a three-year overhaul of its flagship merchandise group to make each segment of its retail business more competitive.
The restructuring, which will trim an undetermined number of people from the merchandise group’s management, will make Sears stores more responsive to customer needs, officials said.
“The apparel business will be run differently from the hardware business,” said spokesman Philo Holland. “You need different organizational structures to compete in different businesses.”
Michael Bozic, chairman and chief executive of the merchandising group, said in a statement that the restructuring would reduce the number of management levels.
Officials said they had no estimate yet of the number of employees to be affected or the cost savings involved.
Holland said the reduction in management personnel would be achieved through attrition and a severance offer of two weeks’ salary for each year of service, up to a maximum of 52 weeks.
Employees at least 50 years old who have been with the company at least 10 years will be offered early retirement benefits, he said.
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