Kmart's `Corrective Actions'
I would like to clarify a number of points in your Kmart Corp. story, "Revolt? What revolt?" (Top of the News, June 20).
We fully appreciate the frustration Kmart shareholders have experienced over the last 15 months. Probably no shareholder has been more disappointed with the performance than our senior executives and board of directors.
Beginning in 1993, long before the shareholder "wake-up call," we embarked on a hard-nosed evaluation of the specific execution shortfalls hindering Kmart's turnaround. The corrective actions we designed are now being implemented storewide and are far more sweeping than just after-hours restocking. We are rationalizing all vendor relations, shipping merchandise on a two-day turnaround cycle, consolidating distribution for fashions and other lines, centralizing all buying, and addressing the cul-
tural impediments to change.
These actions, and many others like them, are transforming many of the fundamental ways Kmart conducts its business. Over the next two years, they represent $600 million to $800 million in profit enhancements.
Where we go regarding specialty retailing will be decided by our board of directors. Whatever action we take, it will be designed to further our core objective--to restore growth to the Kmart stores division. Ultimately, that is the goal shared by all our stockholders.
Joseph E. Antonini
Chairman and CEO