Is it time to close Kmart?
The chain is losing money, and sales are sliding. Is there any reason for it to stay in business?
Would Sears be better off closing Kmart? At the rate things are going, the answer is yes.
Kmart is stuck in a rut. Sales at its stores open at least a year fell 3.8% over the crucial holiday shopping season, The Wall Street Journal reports. Now it has just 0.6% of the nongrocery retail market. In the first nine months of its current fiscal year, the chain posted a $98 million operating loss and saw sales slide 5.5%.
We won't know for a while whether Kmart made a profit in 2012, but it lost money on an operating basis in 2011.
The Kmart stores that I've been to are remarkably similar. They're dirty. The shelves are cluttered, yet the customers are gone. Employees are nowhere to be found.
The Journal found a similar scene at a Kmart in Manhattan, where it reported abandoned carts full of merchandise, unevenly stacked towels and unfolded pajama sets lying about. "The tile floors looked as though they hadn't been mopped in some time, and clothes were piled in the corners of the dressing rooms," Dana Mattioli wrote.
Kmart stores in New Jersey took that a step further, selling expired infant formula and over-the-counter drugs. The chain will pay more than $300,000 in fines and be subject to inspections as a result.
Kmart used to fill an important role for budget-conscious shoppers. But those customers have many more places now that can meet their needs. Dollar stores sell groceries and household necessities. Wal-Mart (WMT) has a bigger selection than Kmart, often at lower prices.
In fact, the Journal cited data showing Kmart's prices were higher than Wal-Mart's and Target's (TGT) in five out of six items it checked at all stores.
Granted, that's a pretty small sample. But if that holds true and Kmart isn't necessarily cheaper than competitors, then what is Kmart's reason for existing?
More in moneyNOW
- Abandoned no more: Schools become housing
- White Castle woos Valentine's Day diners
- Netflix shares soar on solid quarter
I knew there store would not have good-luck! few years back i had some bags that someone from the otherside of the store accidentally push down from the otherside and several bags fell on my head and i had i had injury to my neck and when i file a personal injury lawsuit they sent me a letter saying that they were in bankruptcy and my claim was included i am very happy that they are and have lost money!
when i started working for sears 10 years ago it was a good company to work for,then k-mart and and the worst ceo i have ever seen (Lampert) came along and ran both companys into the ground.When will he sell it and let them rebuild.
We have very few K Mart stores any more here in Florida. There is just one near where I live, and it was going down hill a few years back. Now that the other KIT Marts in the area were closed this one has gotten much better. More checkouts are staffed, good prices, lay a way all year round. This store was never dirty or like the ones the others here are describing, nor were the others that closed. The biggest problem all of them had was understaffing. Wal-Mart is way understaffed here and their prices keep going up. Target is fine if you are under 30. They cater to the young . Also Target is the most expensive of the 3. I do not want to lose K- Mart. I like shopping there.
The Super Wal-Marts with their grocery store, cuts down on their other products space. I go to a regular Wal-Mart when I do go. They took out the garden centers at Target to add groceries in or area. K-Mart doesn't need a full grocery department.
The first Wal-Mart I ever went to, was when I was on vacation in Missouri back in the late 1960's, and it had a grocery department back then.
When I buy groceries I do not want to put them in the same basket with my clothing, gift or other non grocery items.
you companies need to stop hiring all foriegners to try and save a dollar on wages and put employees in these stores that care about what is going to happen to there job if things are not kept the way they should be people that have pride in there jobs
KMart should have quit while it was still S.S. Kresge. It and the other dinosaur "dime store" chain F.W. Woolworth had long ago reached obsolescence. One visit and any savvy shopper could see that this chain was a bottom feeder, with poor cleanliness and absolutely no assistaance to customers.
If you close K Mart the only store in the town where I live is Wal-Mart. The Wal-mart here is usually our of things I want. The grocery part is bare. Yes Kmart is clurted and there are VERT few employees, But it gives us a choice and it has lay-away.
Screw Kmart. They suck and are horrible to the employees they do have. I will laugh the day they shutter all their stores. Hopefully the few employees they do have left will be able to find better jobs elsewhere. Theres dumb and then theres Kmart Dumb!
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] S&P futures vs fair value: -8.70. Nasdaq futures vs fair value: -18.30. The S&P 500 futures have recently notched fresh lows, and now trade nine points below fair value.
Markets across Asia ended mostly lower amid ongoing concerns over the health of the Chinese economy. Elsewhere, the Bank of Thailand cut its key rate 25 basis points to 2.00%, as expected. In economic data, Japan's BSI Manufacturing Index (12.5 versus 11.3 expected) and Tertiary Industry ... More
More Market News
The apparel chain takes a hard hit after blaming the weather for its quarterly sales decline. But cold temperatures don't explain the drop in full-year sales as well.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'