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SEARS REORGANIZES FIELD STAFF

 SEARS REORGANIZES FIELD STAFF
 CHICAGO, Feb. 12 /PRNewswire/ -- Sears Merchandise Group today


announced a reorganization of its field management structure, resulting in the closing and consolidation of several offices, the elimination of about 600 jobs and cost savings of about $50 million by 1993.
 Sears said it will close its 10 regional offices and 26 of its 72 merchandising district units by mid-April. The responsibilities for the remaining 46 districts will be strengthened to include customer service, revenue growth, teamwork, associate development and training, store presentation, inventory productivity and facilities management.
 Sears also said it has begun transferring its inventory replenishment function from the field to headquarters with the completion set for early 1993.
 "We made important strides in 1991, but we need to continue that momentum in 1992 by increasing revenues and cutting costs," said Edward A. Brennan, Sears chairman and chief executive officer. "Our cost reduction programs to date have improved our bottom line by reducing our ratio of selling, general and administrative expenses to revenues. But we need to do much more to be successful in this highly competitive environment," he said.
 Associates who are affected by the job reductions will be placed in other positions where available. Severance programs will be offered to eligible associates.
 In addition, Sears announced it is conducting a benchmarking study of its Merchandise Group headquarters staff in Chicago and various field staff offices, such as human resources and accounting. The purpose of the study is to determine the best organizational structure in the highly competitive retail environment. Sears said that while it cannot estimate the impact until the study's completion later this year, job reductions are expected and will occur in 1992.
 Sears said that, as a result of a competitive analysis, it will implement some compensation changes in 1992 to reduce costs. Effective March 1, compensation programs for some sales associates who sell merchandise on commission will be standardized, designed to be more in line with the competition. While the new plans will enable associates to work more flexible hours, costly and non-competitive policies in some areas, such as overtime, commission rates, and scheduling, will be changed.
 -0- 2/12/92
 /CONTACT: Gerald E. Buldak of Sears, 312-875-8371/
 (S) CO: Sears, Roebuck & Co. ST: Illinois IN: REA SU:


JT -- NY058 -- 9234 02/12/92 12:13 EST
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Publication:PR Newswire
Date:Feb 12, 1992
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