Hechinger hires firm to manage unit

March 02, 1994|By Ross Hetrick | Ross Hetrick,Sun Staff Writer

Hechinger Co., the Landover-based chain of home improvement stores, will turn the operation of its distribution center over to a Pittsburgh company, a move that will affect 160 workers.

The change, which is scheduled to occur early next month, will save the company about $1 million a year, according to W. Clark McClelland, executive vice president and chief financial officer.

"They are able to do it more efficiently," he said.

Mr. McClelland said most of the 160 employees will be hired by the new contractor, Genco Distribution Systems.

But he did not know how many may lose their jobs.

"I don't think it will be a huge number," he said.

The wages and benefits paid by the new contractor will be roughly comparable to those now paid by Hechinger, Mr. McClelland said.

Most of the savings will come through more efficient operations, particularly with a new system that will consolidate Hechinger's returns to suppliers, he said.

Hechinger Co. operates 125 home center stores in its two subsidiaries -- Hechinger Stores and Home Quarters Warehouse.

There are 72 Hechinger stores, split between 44 traditional Hechinger stores and 28 Hechinger Home Project Centers.

There are 53 Home Quarters Warehouse stores.

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