Posted 1/27/2009 04:04 pm
Updated 1 year ago
Target Corp. of Minneapolis said Tuesday that it will close its 852,000-SF distribution center in Maumelle, part of a companywide effort to cut costs.
In a news release, the company said it will close the center, which it said employs 500, "later this year." It said employees there would be offered employment "at other Target distribution centers" or will receive severance. There are no other Target distribution centers in Arkansas.
The move was part of a larger announcement late Tuesday, in which the retailer said it would cut 9 percent of employees at its headquarters. Target said that includes eliminating about 600 employees and 400 open positions primarily in the Twin Cities area.
Most of the moves are effective today, the company said.
"We are clearly operating in an unprecedented economic environment that requires us to make some extremely difficult decisions to ensure Target remains competitive over the long-term," Gregg Steinhafel, Target's president and CEO, said in a news release.
The company said it has experienced weaker-than-expected sales.
Target said it was taking other steps to save money, as well, including suspending salary increases for senior management, suspending share repurchases, tightening credit card underwriting and credit granting, improving store productivity, reducing new store openings, and cutting outside contractor support, travel, entertainment and other operating expenses.
Target operates 1,682 stores in 48 states, 34 distribution centers and employs about 350,000 people worldwide.
In 2003, the appraised value of the Maumelle center was about $20.7 million, up 8.9 percent from 1996. For many years, the distribution center was the largest industrial employer in Maumelle. In 1997, the center employed about 800.