Amadeusz Juskowiak

Sears s to restructure distribution

Sears Roebuck and Co said it will restructure its distribution operations resulting in a 20 mln dlr aftertax charge against earnings in its first quarter

The retailer on April 30 will close its major Chicago distribution center as the first part of the restructuring A spokesman said up to 1800 workers will be affected with many of them laid off Some of the workers may be transferred to other Sears operations

Sears said the restructuring and consolidation will save about 150 mln dlrs by 1991

Sears said it will set up a nationwide network of seven regions to handle all aspects of distribution of its products

The closing of the Chicago plant will be followed by the shutdown of four other distribution units over the next several years Distribution centers will be closed in Boston Atlanta Memphis and Minneapolis with the Boston shutdown coming early next year No other closings are planned before 1989

A spokesman said that while there will be layoffs at those facilities the company does not yet know how many workers will be let go

Sears distribution will be consolidated under regional management in Columbus Ohio Dallas Greensboro NC Jacksonville Fla Kansas City Mo Los Angeles and Philadelphia However Sears said it will also evaluate the productivity of the Los Angeles and Philadelphia facilities to determine whether they will be modernized or relocated

Responsibility for ordering distribution center inventory will be centralized in Chicago

Reuter