Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, November 24, 1994 TAG: 9411250023
SECTION: BUSINESS PAGE: A-17 EDITION: HOLIDAY
SOURCE: Associated Press
DATELINE: DETROIT LENGTH: Short
A task force headed by Chairman Joseph Antonini and newly hired Executive Vice President Marvin Rich has begun work on plans to save the company hundreds of millions of dollars in the next two years.
``The cuts it comes up with will begin to be rolled out in [February] 1995,'' Kmart spokeswoman Mary Lorencz said. ``The goal is that in 1996 our expenses will be $600 million to $800 million lower than in 1994.''
She said the company already has made $100 million in cuts.
The closings announced in September will eliminate 110 stores from the company's 2,300 outlets and cut management staff by 10 percent. The new program will continue to eliminate unprofitable stores.
``As yet, we haven't identified those stores,'' Lorencz said, adding that the closings might not be decided on or announced in a large cluster, as Kmart did for the 110 stores it expects to shut by February.
Kmart has been struggling to compete with No. 1 Wal-Mart Stores Inc. and other discount chains that have newer, larger stores.
Last week, Kmart reported third-quarter profits 58.5 percent lower than a year ago, and its stock price has plunged.
by CNB