Reitmans announces cost reductions to reach profitable growth
Reitmans Canada Limited (RCL) announced on Thursday its plans to reduce its operating costs in order to fuel long-term profitable growth in the increasingly competitive retail environment.
Following the reduction in costs, the company will streamline its workforce by eliminating 77 positions, or 10% of its head office positions.
"Over the last two years, we have looked at every part of our organization, from sourcing, merchandising and e-commerce to optimizing our real estate portfolio", said Walter Lamothe, Chief Operating Officer and President, Retail for Reitmans (Canada) Limited. "Our industry and our consumers are changing faster than ever before. As a result, we need to significantly increase our agility and improve our efficiency. Our ability to respond quickly to these new demands and continue to reinvent ourselves will be key to our long-term growth and future success."
The cuts will result in severance costs of approximately $2 million in the fourth quarter ending January 30, 2016, and it will generate projected annualized savings of $6 million which is to be reinvested in the company to support its growth strategy.
Founded in Montreal in 1926, Reitmans currently employs 10,000 Canadians and operates over 700 stores across Canada under Reitmans, Penningtons, Addtion Elle, RW&CO., Thyme Maternity and Hyba.
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