Kmart once was the nation number one discount retailer, now struggles to make a profit. The mega discount store has a long history in retail that dates back 103 years, established by Sebastian Kresge in 1899. The company went public in 1918 on the New York Stock Exchange. In 1966 sales topped one billion, S. S. Kresge runs 915 stores, including 162 Kmarts. In 1977 the company changes its name from S.S. Kresge to Kmart Corporation. Over the company's 103-year history it has acquired several profitable chain of stores. Walden Book Company, Home Centers of America, Office Max, Border Books, and 70 percent of The Sports Authority. In 1990's Kmart's long reign as top discount retailer started to crumble due to mismanagement and allegations of CEO misuse of funds. January 22, 2002 Kmart files for chapter 11 bankruptcy protection, it was the biggest retail bankruptcy in history. A Look At Kmart's History, (2002), http://www.click2houston.com/news/1200357/detail.html.
Today, James B. Adamson is the new chairman and CEO of Kmart Corporation. "Adamson acknowledge that same store sales soften last quarter. But, he noted that December's sales could be slightly positive, helped by sales of Martha Stewart's new line of holiday products. The home fashion "Every Day" line of home products, and furnishings have come under scrutiny lately as Stewart, who is Kmart's biggest license spokesperson, faces possible federal charges related to her sale of Imclone System stock last year". .
A. Define the business research and its purpose.
The purpose of this paper is to investigate the problems of Kmart. Kmart's mission is to provide discounted clothing, food, houseware, hardware items, and outdoor gardening products. Thru research find out, which items are profitable and which items are not. .
B. Explain the business problem(s) under investigation.
1. Survey public opinion of company image. Martha Steward, Kmart's high profile spoke person, under investigation, scandal-evolving insider trading.
The Kmart became a symbol of Americana, standing for quality products at low prices. ... When considering the competition, Kmart is far from leading the market.CEO of Kmart, Floyd Hall sees great things in the future for Kmart. ... Hall and the Kmart Corporation thought bigger were better. Unfortunately Kmart got worse when it got bigger. Kmart has faced many difficulties since the times of S.S Kresge. ...
Kmart's internal strengths include their current CEO Julian Day and their current Restructuring plan. Connerly has demonstrated himself to be of great value to Kmart. ... Kmart's image is so negative that 49% of Wal-Mart's customers indicated in a survey that they drive past Kmart to get to Wal-Mart. Kmart tried to start competing again with Wal-Mart on prices by spending $2 billion over two years to improve stores and supply chain management, but failing to market Kmart as a good place to shop. ... Kmart needs to try and create partnerships with foreign retailers to break i...
A good example of this level of analysis put to good use is demonstrated by Kmart in the late 1950's. In a case study by Hartley (1997) Kmart and the two year analysis of their market performed by Harry B. Cunningham (later President of Kmart). In this instance Cunningham studied the overall market and competitors while analyzing the Krieger (Kmart) organization. ... Kmart would grow from 216 stores in 1968 to 1,366 stores in 1978. ...
Kmart Corporation, the third largest retailer in the US, has recently been having problems competing with WalMart and other large retailers. ... If Kmart Corporation is unable to reorganize in the next few years, WalMart will most likely increase its customer base with Kmart customers. ...
By 1990, 90% was purchased by Kmart. Kmart was a large financial backer and let the business implement it's own strategy. ... Also in 1994, Kmart decided to focus back on its core discount store operations and sold of OfficeMax. With the money from the sale Kmart worked out a deal, which helped finance OfficeMax's expansion. ...
By 1990, 90% was purchased by Kmart. Kmart was a large financial backer and let the business implement it's own strategy. ... Also in 1994, Kmart decided to focus back on its core discount store operations and sold of OfficeMax. With the money from the sale Kmart worked out a deal, which helped finance OfficeMax's expansion. ...
Other technologies that helped Wal-Mart (especially gain an edge over Kmart) were the hand held scanners and better electronic cash registers. ... "It wasn't just that a vast gulf had developed between how Wal-Mart and Kmart approached the business. ...
The fact is, Wal*Mart is bigger than these companies and their direct competitors Kmart and Target are doing everything in their power to close that gap. ... By virtue of their efficient, effective system and its proven success, companies like Kmart and Target are watching closely and both emulating and improving upon this system. ... In contrast, Kmart has only 50% of their products coming from distribution centers with a full half being shipped directly from suppliers into their stores, thus raising costs to Kmart and their customers. ... This and similar programs were effective in ensu...
