Kmart Corp. (Troy, Mich.) announced that long-time company executive William Underwood is coming out of retirement to take the new position of executive vp, Kmart sourcing and global operations. And, as part of further management shakeups as the retailer tries to reorganize itself out of bankruptcy protection, president and coo Julian Day will take over management of the food and consumables business.
Underwood, 61, will have responsibility for Kmart's sourcing operations worldwide, including product specification and quality assurance, and vendor relations. He will report directly to Adamson. The company said the purpose of this newly created position is to be competitive in sourcing product for hardlines and softlines, improve gross margins and enhance product quality.
Underwood will also temporarily take on responsibility for the entire Kmart Merchandising function, with the exception of food and consumables. As part of a forthcoming reorganization of Kmart's merchandising operations, executive vp of merchandising Cecil Kearse, has left the company.
Underwood joined Kmart in 1962 when it was still known as the S.S. Kresge Co. In 1978, he became a buyer for Kmart's merchandising operations and subsequently held senior merchandising roles for men's and boy's wear and later for hardlines. In 1994, he was named senior vp, vendor and product development, and in 1997 was promoted to senior vp, global sourcing (later senior vp, global operations, corporate brands and quality assurance). He retired in May 1999.
“As we continue to focus on strengthening Kmart's financial and operating performance,” said chairman and ceo James Adamson, “it is important that we take a hard look at all aspects of our business and the leadership driving it.”
As for Day's new responsibilities, Adamson said, “Julian's expertise in the grocery industry with Safeway Stores allows Kmart to tap into his extensive knowledge of the food business and grow this important component of our strategy.”