Troubled retail giant Kmart Corp, which last month filed for Chapter 11 bankruptcy protection, said on Wednesday it will change the corporate organisation of its stores and added it hopes to return to financial health by mid-2003.

Kmart will replace six geographical field divisions with a new field organisation that will include five separate operating divisions including four geographic areas - West, Southeast, Northeast and International - and a separate Super Centres division.

Gregg Treadway was promoted to executive vice president, store operations and will report directly to Kmart chief executive Chuck Conaway. The five division presidents will report to Treadway.

"Kmart is committed to addressing our operational challenges in a thoughtful, yet aggressive, manner," said Conaway in a statement. "This new organisation will provide a clear, focused direction and strong leadership for our store teams."