Stage Stores cuts 105 jobs as it merges operations

US: Stage Stores cuts 105 jobs as it merges operations

By Katie Smith | 12 February 2013

Discount department store retailer Stage Stores is cutting 105 jobs as it looks to consolidate its South Hill, Virginia regional operations into its Houston, Texas corporate headquarters.

Merchandising, planning and allocation, human resources and other services supporting 331 stores in 24 Mid Atlantic, Southeastern, Midwestern and Northeastern states will move to the Houston headquarters.

As a result of the move and subsequent office closure, 180 jobs at South Hill will be eliminated, while around 75 new positions will be created in Houston.

The reshuffle will have no impact on the operations of the South Hill distribution centre, the company stressed. A number of employees will have the opportunity to relocate to other facilities, including Houston. Staff that do not decide to move, will receive severance packages, outplacement counselling services and other benefits.

Stage Stores said the consolidation will help to increase efficiency, create synergies, reduce expenses and enhance growth.

"This action is the culmination of an initiative that we began last year," said president and CEO Michael Glazer.

"Given the impact on South Hill employees, the decision to consolidate was a difficult one. However, the significant benefits from having all department store functions and processes entirely together in one location could not be ignored. This strategic action will strengthen collaboration, teamwork and communications, while streamlining operations, enhancing overall operational efficiency and reducing costs. Combining all department store functions will also create consistency in merchandising, marketing and e-commerce, which should result in higher sales and earnings growth."

The retailer said the consolidation, which is expected to be completed by the middle of this year, will result in annual savings of $5m, while related costs are set to reach $20m.

Sectors: Apparel, Retail

Companies: Stage Stores