NEW YORK -- Dayton Hudson Corp. said it plans to consolidate the credit operations of its Mervyn's division into those of the department store division, a move affecting 500 employees.

DH, which is based in Minneapolis, will take a pretax charge of $10 million, or 8 cents a share, against fourth-quarter results to cover the costs of the consolidation but expects significant savings going forward. In the 1993 fourth quarter, DH earned $278 million, or 42 cents a share.

The consolidation involves moving 500 jobs from Mervyn's headquarters in Hayward, Calif., to a new facility in Minneapolis, which will be in a former Prudential building. The new center will employ 1,000 people, including 500 department store employees currently working in Minneapolis who also handle the Target division's credit needs. A DH spokesman said some Mervyn's employees will be relocated while others will receive severance, but that there will be no reduction in the work force due to the move.

Stephen Watson, chairman and chief executive officer of the department store division, said the retailer selected Minneapolis due to its central time-zone location and its proximity to other Dayton Hudson resources. The consolidation will begin in the spring and be completed by fall.  - Fairchild News Service

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