Abstract
Kmart was one of the leading retailers in America for an extended period of time, however due to the inefficient planning with regards to its core forte of discount retailing and its complacency in relation to its competitors namely Target and Wall Mart led to Kmart’s downfall is a spectacular fashion.
We will evaluate Kmart’s strategy to compete in the retail market and how can they be a force to reckon with again in this cut throat environment of Retail Sector by channeling their resources effectively.
KMART – BACKGROUND & PROBLEM IDENTIFICATION
Kmart – Background & Problem identification
Introduction
- Kmart initiated its business in the year 1962 with the opening of a discount department store in Garden City, Michigan (Kmart History, 2013).
- The launch year saw Seventeen more Kmart stores opened resulting in sales of $483 million in 1962 (Kmart History, 2013).
- The sales of the Kmart chain topped a $ 1billion mark just four years into their operations of the 162 Kmart stores and 753 Kresge stores (Kmart History, 2013).
- Kmart Corporation as an official name was launched in 1997in view of the 95% of sales generated by Kmart stores for S.S.Kresge Company (Kmart History, 2013).
- Kmart enjoyed a profitable run due to its size and business positioning as a discount retailer.
- Complacency with regards to the competition and not positioning the stores effectively with changing times resulted in Wall mart surpassing Kmart at the top of the retail discount sector.
- The strategy to move ahead or lack of it resulted in catastrophic losses and more importantly losing its way.
- Kmart filed for bankruptcy chapter 11 in the year 2002 (Kmart History, 2013).
KMART – BACKGROUND & PROBLEM IDENTIFICATION
Problem identification
- The intent was to organize the operations in a more profitable manner and reduce operating costs in all the domains of operations namely, IT, Marketing, Supply Chain & Procurement. (E.J. Schultz, 2012)
- As mentioned by Marcia L. Turner (2003) in her book Kmart’s Ten Deadly Sins, it is evident that one aspect which can reinvigorate Kmart’s fortune is by Advertising Campaigns which connects the brand with people.
- Also the communication of the services rendered need to be looked into, case in point Kmart Smart tagline focused more on the branding aspect
- On the contrary Wall marts tagline Rock Bottom Price & Targets better experience but still good price is more affixed on push sales which is a primary outlook for retailers in this era of globalization.(E.J. Schultz, 2012)
- The need is to bridge the gap amid the brand Kmart and consumers on a level which connects them in an allied manner and increase their media spending.
KMART – BACKGROUND & PROBLEM IDENTIFICATION
References
Marcia. L. Turner (2003). Kmart’s Ten Deadly Sins: How incompetence tainted an
American Icon. Advertising: 29
E.J. Schultz (2012). Why Kmart Lost the Attention of Discount Shoppers. Advertising Age.
Retrieved from http://adage.com/article/news/kmart-lost-attention-discount-shoppers/233369/
Kmart, History (2013). Sears Holding History. Sears Holding Corporation
Retrieved from http://www.searsholdings.com/about/kmart/history.htm
