YORK, Pa.–Bon-Ton is the latest retailer to outline a series of cost-savings moves, including the reduction of its corporate and store personnel by roughly 1,150 positions.
The 281-unit department store chain will also reduce other non-associate based costs; eliminate 2008 bonuses for senior executives; get rid of 2009 merit-based wage increases across the entire company; suspend employer contributions to the company’s 401(k) plan; reduce capital spending to $40 million, net of landlord contributions; and adjust inventory levels in response to the downward sales trend.
The retailer expects to save $70 million annually from these moves, which will cost about $3.0 million.
“We are taking necessary actions to reduce costs in response to additional pressure on the retail industry brought on by significant deterioration in both the financial markets and macroeconomic environment,” said Bud Bergren, chairman and chief executive officer, in a statement.
“We have a strong franchise with eight regional nameplates, a loyal customer and associate base and a merchandise mix that differentiates us from our competitors.”
In the last two weeks, Target, Home Depot and Williams-Sonoma have outlined plans to cut jobs and other corporate functions.