Company Also Makes Changes at its Head Office
TORONTO, Nov. 26, 2013 /CNW/ - Sears Canada Inc. (TSX: SCC) announced
today that, following a comprehensive review of its Repair Services and
Parts businesses, it will be implementing a number of significant
changes designed to improve efficiency, profitability and the overall
customer experience. The changes will take place over the next six
months and will result in a workforce reduction of 712 associates.
In Repair Services, Sears will be shifting to using exclusively
Sears-authorized contracted technicians in mid-markets, which it has
been using successfully in smaller markets for several years, resulting
in a reduction of Sears technicians and support teams in these
locations. Due to their complexity and size, major markets will
continue to be primarily serviced by Sears technicians, although the
teams will be streamlined. There has also been a shift of in-warranty
repair work on major appliances from Sears to its suppliers as is the
In the Parts division, sixteen existing stand-alone Parts processing
locations and a central processing centre in Belleville, Ontario will
be consolidated into three major fulfillment centres located in
Calgary, Toronto and Montreal. Where a Parts processing location is
closing outside of these three cities, a Parts counter will open in a
nearby Sears location so that customers can continue to have local
access. This model has been piloted successfully in three locations
with no impact to customer service.
The reorganization of Repair Services and Parts will result in the
streamlining of support functions in both the Company's head office and
the field including consolidating the dispatch function to one English
language centre in Toronto and one French language centre in Montreal.
Sears Head Office
Separately, the Company is also announcing today a staffing reduction in
its head office operation, a move to align the Company's support
structure with the size and volume of the organization as well as to
take advantage of internal processes that have been recently
implemented to improve efficiency. The changes affect 79 associates
and have been made across various functions of the head office
"The changes we are announcing today are being made to bring the
structure of our organization in line with the size of our business,"
said Doug Campbell, President and Chief Executive Officer, Sears Canada
Inc. "These improvements are initiatives we are implementing as part
of the efficiency lever, one of the three levers we utilize along with
the merchandising lever and network lever to maximize total value for
the organization. While right-sizing is important for a more effective
enterprise, our greatest opportunity lies within the merchandising
lever, where our focus is on providing quality products and services
that Canadians expect from Sears when and where they want them at
prices that provide great value.
"Decisions that affect associates such as those which we announced today
are not taken easily, and are made with great forethought and
consideration," added Mr. Campbell. "I thank those leaving Sears for
their contribution to the Company and wish them much success in the
future. The Company will offer transition services as a way to assist
our associates as they prepare for their next role."
Sears Canada is a multi-channel retailer with a network that includes
181 corporate stores, 241 hometown dealer stores, over 1,400 catalogue
merchandise pick-up locations, 101 Sears Travel offices and a
nationwide home maintenance, repair, and installation network. The
Company also publishes Canada's most extensive general merchandise
catalogue and offers shopping online at www.sears.ca.
Although the Company believes that the forward-looking information
presented with respect to the reorganization of its repair service and
parts business and its head office is reasonable, there can be no
assurance that closing will occur and such forward-looking information
involves known and unknown risks, uncertainties and other factors which
may cause actual results, performance or achievements to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking information, and undue
reliance should not be placed on such information. The forward-looking
statements in this release are made as of the date hereof. The Company
does not undertake any obligation to update publicly or to revise any
forward-looking information, whether as a result of new information,
future events or otherwise, except as required by law.
SOURCE: Sears Canada Inc.
For further information:
Sears Canada, Corporate Communications