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
you know i always have to laugh at you people who think that wal-mart is EVIL or any other name you wanna give it..
WHOSE FAULT IS IT THAT WAL-MART is so BIIIIIGGG????
you the consumer....you are always looking for the best buy...and wal-mart gave it to you...so you shopped and shopped there foregoing your "normal" store....and what happened???? these "normal" stores closed because of it and now you bitch and complain that wal-mart is BAD, EVIL, etc...
LOOK IN THE MIRROR....YOU MADE IT THAT WAY...
just like everything else that you hate today, no prayer in school, stores open on Sunday, stores open on CHRISTMAS or THANKSGIVING (cutting into your "FAMILY" time!!)...if you would've stood up against these things, they wouldn't be the way they are today...
so stop blaming everything on something and LOOK IN THE MIRROR...YOU ARE TO BLAME FOR IT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Stay on point this discussion is about kmart not hostess. Just because you have access to a computer doesn't mean you should state an opinion, wise up before you speak ****.
I think the worst thing in my Kmart is the restroom. I like Kmart. I go there more then Wal-Mart. Kmart has a better selection. If anyone has noticed Wal-Mart does not have the selection they use to have, their shelves are always emptied and it just seems the clientele is getting worst and worst at least in my area. I shopped at Kmart for the holidays and did not even go to Wal-Mart. Maybe some of the stores that are not performing need to be shut but not all of them. What are we going to have left. Montgomery wards, Mervyns are already gone. Let's Save Kmart. You also have to remember all the stores including Wal-Mart are cutting their employees hours. So that is the problem with the bad customer service.
This coming from a former employee of 20yrs it is not Kmart who gave up on it's customer it is the higher ups and the owner of the company that gave up on it's customers. They outsourced the headquarter jobs to India and expect customer service to be good (NOT). They won't hire full time in the stores so no customer service there either and they wonder why their stores look the way they do and nobody is around to help the customers. Or keep the stores neat and organized and clean you have to be willing to hire staff for the stores first they are more worried about lining their big wigs pockets than what happens to the stores or the customers. Sorry is the truth.
Kmart in McAllen texas is a well kept store. There is always someone to help you not mlike the tten walmart in the same area. We drive past several walmarts to buy. Walmart do not care about the little people. Check there prices they are different in stores just few miles away. hey call it zone pricing. Give the company a chance.
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.
- Natural gas rallied earlier this morning to as high as $3.95/MMBtu. In more recent action, and ahead of the weekly EIA inventory data, nat gas has pulled back some
- Following the data, Sept nat gas sold off into negative territory and is now -0.8% at $3.80/MMBtu
- Oct crude oil rallied this morning, erasing overnight losses. Oct crude fell as low as $92.50/barrel and is now -0.4% at $93.79/barrel
- Precious metals are lower this morning.
- Dec gold ... More
More Market News
Do it once a year. This allows the best-performing asset classes to take off and run.
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'