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TheStreet Open House

Sears Canada Announces Reorganization Of Its Repair Services And Parts Business

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 industry standard.

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 operation.

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