KMART FORMS SUPERCENTERS DIVISION

DAVID GHITELMAN

TROY, Mich. -- Kmart Corp. here said last week it is putting supercenters under their own division, effective immediately, as the company restructures its store operations in its effort to emerge from bankruptcy.

The Super Centers division will be one of five divisions at the realigned company. Previously, store operations were divided into six strictly geographic divisions.

Mark Hansen, chairman and chief executive officer, Fleming, Dallas, Kmart's principal supplier of consumables, called the creation of a supercenter division an optimistic sign.

"We are encouraged by the operation's reorganization at Kmart that created a special team for supercenters," Hansen told an investors conference in New York last week.

Kmart also said last week it was evaluating "the performance and lease of every store," and it would "be closing a number of stores."

The company said the evaluation is expected to be completed by the end of its first quarter in April.

Kmart said Michael S. Jardina, formerly senior vice president, Northeast, has been named president of the new Super Centers division.

The company also said Gregg Treadway, formerly senior vice president, Midwest, has been named executive vice president, store operations. In his new position, Treadway will have responsibility for all five of the new divisions and report directly to Chuck Conaway, Kmart's chief executive officer.

Treadway succeeds David Montoya, who has been named senior vice president, speciality operations, and will report to Paul Huebler, the former senior vice president and managing director of Kmart's Caribbean division, who has been named president of the company's new international division.

The other new divisions and their presidents are: Northeast, Douglas M. Meissner, formerly senior vice president, sales and marketing; West, Lee M. Viliborghi, formerly senior vice president, Northwest; and Southeast, William Wulfers, formerly senior vice president, Southeast.