Target to Reduce Headquarters Work Force by 9%
Minneapolis Target said late Tuesday it will reduce the work force at its headquarters locations by about 9%, including approximately 600 employees and 400 open positions. The majority of the cuts are concentrated in the Minneapolis-St. Paul area and were effective Tuesday.
“We are clearly operating in an unprecedented economic environment that requires us to make some extremely difficult decisions to ensure Target remains competitive over the long-term,” said Gregg Steinhafel, president and CEO, Target Corp.
The chain will also close its distribution center in Little Rock, Ark. which employs 500 people later this year. Target has implemented other steps to reduce expenses such as eliminating salary increases for senior management and suspending share-repurchase activity. As a result of these measures, the company expects to record a charge of about 3 cents a share, mostly in the fourth quarter.
Headquarters employees affected by the announcement will continue to receive their full pay and benefits through April 1, after which they will receive a comprehensive separation package based on their years of service. As part of that package, Target also will provide these employees with 12 months of continued Target healthcare benefits in addition to 12 months of the COBRA benefit, and outplacement support to assist them in transitioning to their next position.
Little Rock DC employees will be offered positions at other Target DCs, or will receive comparable severance.
Tuesday Morning suffers 2Q loss
DALLAS Tuesday Morning reported that as previously announced, net sales for the second quarter of fiscal 2009 were $272.7 million compared to $308.7 million for the quarter ended Dec. 31, 2007, a decrease of 11.7%. Comparable-store sales decreased 14.9% for the quarter compared to the same quarter in the prior year.
According to the company, the decrease in comparable-store sales was comprised of a 9.6% decrease in traffic and a 5.3% decrease in average ticket.
Net income for the second quarter was $12.7 million or 31 cents per diluted share, compared to $20.5 million or 50 cents per diluted share during the same quarter last year.
Kathleen Mason, president and CEO, stated, “The December 2008 quarter was reported as the most difficult retail holiday season on record. While consumers remain cautious, we remain focused on preserving our strong balance sheet, managing inventory levels and generating positive cash flow.”
Obama figurine added to Chia product line
SAN FRANCISCO Joseph Enterprises, makers of the Chia Pet line of products, has introduced the Chia Obama, in honor of the 44th U.S. president.
The Special Edition CHIA OBAMA is a handmade decorative figurine in the likeness of President Barack Obama.