KALAMAZOO, Mich. (April 6, 2005) - Meijer Stores had the second-most profitable year in its history in 2004 after implementing a sweeping cost-cutting initiative and re-thinking its merchandising. The newly promoted president of the chain told attendees the news at the Western Michigan University Food Marketing Conference here yesterday. "Meijer had tried to cut costs before, but was never able to do it," said Larry Zigerelli, a veteran of CVS and Procter & Gamble who joined Grand Rapids, Mich.-based Meijer two years ago as senior vice president. He said the company is on track to reduce selling, general and administrative expenses by 4% during a two-year span. Construction costs for new supercenters have fallen 27%. The company has also refocused on making its stores easier to navigate and creating more destination departments, while emphasizing the "right products at costs that are proximate to the competition," he said.
Posted by UFCW 227 at April 6, 2005 07:35 PM