Ettore returns to Jamesway as new prez, COO - Joseph Ettore, chief operating officer

Discount Store News, June 7, 1993 by Jill Lettich

SECAUCUS, N.J. - Joseph Ettore, most recently chairman and ceo of Stuarts Department Stores, Franklin, Mass., was named president and chief operating officer of Jamesway, the Northeast regional discounter based here.

Ettore's return to Jamesway - he had been vice president, general merchandise manager, until 1989 - follows the return of Arlie Lazarus to the discounter's helm last month as chairman and ceo. Ettore and Lazarus had worked together during Lazarus' more than 20-year tenure with the firm.

Peter Hollis, who was named president of Jamesway in April of 1992, has left the company.

No replacement for Ettore has yet been named at Stuarts. A three-person management team has been established to run the operation which includes Antone Moreira, senior vp, cfo; David Ferguson, senior vp, operations; and Denis Lemire, senior vp, merchandising. In addition, S. Joseph Hoffman, a member of Stuarts board of directors, has been named acting chairman.

The recent history of both Stuarts and Jamesway - struggling regional chains - mirrors events in the larger retailing community as more regionals are pitted against formidable competitors like Wal-Mart.

We've got quite a challenge," said Ettore, about Jamesway's future. He said many of the problems that faced him at Stuarts - the competition from the national discounters, and the weak Northeast economy- were issues to contend with at 108-unit Jamesway.

We may try things that worked at Stuarts; we won't try what didn't work - they're non-competing," he said. cause of that, Ettore will stay on Stuarts' board of directors. Stuarts has stores in Massachusetts and New Hampshire; Jamesway is in New York, New Jersey, Delaware, Pennsylvania, Maryland, Virginia and West Virginia.

"Joe brings with him a broad knowledge of our industry and company, as well as proven management and merchandising skills that will greatly benefit Jamesway," said Lazarus.

Stuarts his benefitted by positioning itself as a neighborhood discounter involved in its community. While demographics for many discounters have curved slightly upward, the 20-unit Stuatrs chain has stayed a draw for low-income, blue collar shoppers, a niche that has so far let it hold its own.

To Jamesway, which reported an $8 million loss for the quarter ended May 1, Ettore brings the experience of overcoming a dismal financial statement and surviving a Chapter 11 bankruptcy. Stuarts went into Chapter 11 in December of 1990 and was reorganized in September 1992.

For the fiscal year ended Jan. 30, 1993, Stuarts reported sales of $123 million, compared to $119 million a year earlier. Net income was $191,000. That compared to a net loss of $1 million a year earlier.

Moreover, Stuarts is set to open its first new store in many years in Taunton, Mass., this August. It is also designing its own "store of the future" in its Billerica, Mass., locale, though no opening date has been set.

Jamesway, meanwhile, continues to report heavy losses, but is taking steps toward stability Earlier this year, it closed 13 unprofitable stores (11 in 1991). In January, it announced an agreement with its lenders to extend credit facilities through January 1996. But the agreement did not come in time to let Jamesway take full advantage of Christmas '92 sales.

A loss of $43 million in the fourth quarter was partly due to an interruption of the low of apparel merchandise while the terms of its new financing agreement were being negotiated. The loss included a restructuring charge for the closing of the 13 stores.

Jamesway also began a re-modelling program in early 1992, beginning with two of its Delaware stores. Though executives reported increases in remodelled (units (13 so far), these did not offset the financial results chainwide.

For the fiscal year ended Jan. 30, Jamesway reported sales of $856 million, compared to $855 million a year earlier. The company also reported a loss of $54 million, compared to $3 million a year earlier.

For the first quarter, ended May 1, Jamesway sales were $157 million, compared to $182 million a year earlier. The company showed a loss of $8 million, compared to a loss of $3 million a year earlier. Jamesway noted the reduction in sales reflected the 122, stores in operation in 1992, compared to the 108 units now open.

The challenge for the Stuarts team is to build on the store improvements and established customer loyalty The new Jamesway management must find its regional voice in a more crowded marketplace.