retail news in context, analysis with attitude

Raley’s announced yesterday that it is cutting five executive positions, a move that will impact COO Dave Clark, Senior VP for organizational effectiveness Joan Miszak, Chief Marketing Officer Michelle Cervantez, Chief Legal Counsel Todd McHenry, and Senior VP of Sales and Merchandising Joel Barton.

CEO Michael Teel said that the positions are being eliminated not because of performance issues, but just because the company “can't afford that kind of structure in today's competitive marketplace” and that there were too many bureaucratic layers for a small retailer.

No store level positions are said to be vulnerable.
KC's View:
While I generally think that most companies would be better off with less bureaucracy and - using the philosophy espoused by Feargal Quinn - turning “headquarters” into a “support office,” this is just a little bit stunning. After all, if I’m not mistaken, Clark was interim president before Teel returned to the job, and in most companies the chief marketing officer job would be a critical one.