Kmart finalizes exec team

Discount Store News, March 6, 1995 by Laura Liebeck

TROY, MICH. -- Last week's arrival of a highly-regarded former Macy's executive to head Kmart's merchandising operations caps the restructuring of the discounter's top management. Oft-criticized for inbreeding its management talent, Kmart now is led by a group that includes several "outsiders" who are being counted on to inject fresh ideas into the struggling discounter.

Charles Chinni, formerly merchandising president for Macy's East, was named executive vice president of merchandising. He rounds out Kmart's newly formed five-member "platform team" of key executives. This team, which reports to president and ceo Joseph Antonini, is charged with charting the future of the Kmart discount department stores and Super Kmart Centers.

Chinni ends Kmart's search for a No. 2 executive to Antonini, the retailer said.

"These (Chinni, three other recently hired outsiders, and one Kmart veteran) are the executive vice presidents we need in place," Shawn Kahle, vice president of corporate communications, told local reporters, referring to the now completed five-man team charged with running Kmart. "This is the team."

The new executive platform consists of:. Chinni; Marvin Rich, executive vp, strategic s planning, finance and administration; Ronald Floto, executive vp and president of Super Kmart Center; Kenneth Watson, executive vp, marketing and product development; and Donald Keeble, executive vp, store operations, the only Kmart veteran. Rich, Floto, Watson and Chinni were hired by Kmart in the last four months.

Chinni oversees all apparel, accessories, home decor, do-it-yourself and electronics merchandise categories. Industry observers expect Chinni to bring department store merchandising savvy to the discounter, particularly in soft lines categories and especially in apparel.

Rich, in addition to his strategic planning responsibilities for Kmart, is also overseeing Kmart's internal audit function and its Borders Group and Builders Square subsidiaries. (George Mrkonic, who had been executive vp, specialty retailing, left that post recently to assume the presidency of the Borders Group, which will be spun off from Kmart this year, Rich also directs Kmart's Productivity Improvement Task Force.

Floto, in addition to heading the supercenter division, is now responsible for Kmart's distribution centers, inventory management, and consumables and commodities merchandise categories. He directs Kmart's Merchandising Flow Task Force.

Now Watson is directing the review of the retailer's advertising agency program and oversees Kmart's in-store visual merchandising.

Keeble's 24-year tenure with Kmart includes stints in soft lines, operations and most recently as the chain's chief merchant. As executive vp of store operations, Keeble oversees the company's 2,400 discount stores, real estate, construction and human resources.

Absent from the executive team is Kmart veteran Joseph Thomas, executive vp, U.S. Kmart stores, who will retire Aug. 25 after 40 years with the Troy-based retailer. He was set to relinquish his seat on the board of directors March 1.

The creation of a platform team is Kmart's latest attempt to wrestle its business into a more manageable form. A platform team is designed to permit executives to work in a more integrated fashion across traditional functions. Such a formation fosters better communication among the group's members enhancing the eventual outcome of the company's plans, explained Kmart spokeswoman Mary Lorenez. She noted that there is more cross processing of information in such a setup as opposed to the "silo" approach to management.

"The U.S. Kmart executive `platform team' will report directly to me so that we can develop, implement and execute our strategies more productively," said Antonini, who relinquished his chairman title in January to board replacement Donald Perkins.

"We can build a stronger and more effective infrastructure to support our stores and improve store operations." He also noted that the use of a platform team will help K-mart "leverage the talents of our newly hired executives along with those who have built successful retail careers here at Kmart."

At press time, Chinni was not yet at Kmart and could not be reached for comment. He is a 26-year veteran of the Macy's organization and is known for being a "straight shooter," according to one Macy's insider.

At Macy's, Chinni is credited with building strong presentations in housewares, fine jewelry, accessories and lingerie.

"He is a seasoned professional, so smart about marketing and merchandising," the insider said, noting that Chinni is "a smart hire" for Kmart.

Chinni began his career with Macy's in 1966 as a department manager. He rose to president of merchandising for Macy's East in 1992 and held that spot until leaving Macy's in December. In the interim years, Chinni held various positions with Macy's, its former Bambergers division and at Bullocks, a Macy's department store acquisition. His specific category experience includes stints in housewares, table top, lingerie, kids and cosmetics.