TROY, Mich. (AP) — Kmart Corp. has announced that it is relocating two distribution centers as part of a cost-saving plan.
Company spokesman Stephen Pagnani said last week company officials do not expect a resulting net loss of jobs, though officials expect turnover to occur because of the distances between the old centers and the new ones.
One facility is moving from North Bergen, N.J., to Chambersburg, Pa., a distance of about 200 miles. The other center is moving about 45 miles from Carson, Calif., to Mira Loma, Calif.
Pagnani said the number of affected jobs will not be known for several months and will be partially determined by union negotiations.
The plan also involves implementation of new operating software across its supply chain.
"Reconfiguration of the distribution center network entails the replacement of two aging distribution centers with two state-of-the-art facilities, which will improve productivity and the flow of goods to nearly half of our stores," Chuck Conaway, chairman and CEO, said in a statement.
The Troy-based retailer expects to record related special charges totaling about $195 million, or $124 million, after taxes, over the next three quarters. Approximately $150 million of the charge will be recognized in the third quarter of 2001.