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
First car I ever bought was a 58 Chevy, Last one is a 2013 Malibu, with 14 GM cars in between including a 2001 Buick regal with over 200,000 miles on it and still going strong Go GM----- Buy American
I hate to see any business go under but looks as if K-Mart is a prime target.
the one in my hometown in KY, sounds a lot like the ones described in this article.
one day while i was shopping at K-Mart i went to the public bathroom & couldn't
believe my eyes, it was so dirty i just turned around & walked out. i went to the service desk
and told the person in attendance what i had just experienced & i was seriously considering
calling the health dept. as i was walking out of the store i heard the store manager being paged
over the intercom system. i went back about a week later and found a spotless restroom.
Much as I hate to admit it, the company once known as Kresges (spelling ?) that was a clean, moderately priced store that sold everything from soup (at the lunch counter) to fresh roasted
peanuts and cashews. A store where you got your money's worth on anything you purchased.
K-marts are now a dirty, rumpled merchandise store. Groceries are generally higher that most
super markets. The meat dept. seems to be pretty good and usually at competitive prices. No
real need to always shop there. Maybe start chopping heads at the top before it's too late and
they will be forced to close.........
Wal Mart at how packed they are. K-Mart doesn't have to be this way and NEITHER does Sears!!! What is wrong with YOU executives to let a traditional store go the way of Woolco and Roses and other great stores that I shopped so long ago? ARe you going to let Wal Mart, who has driven a wedge in the economy and stripped so many town and businesses with its "undercover" practices rule?? Get a wake up call and get to work. Instead of investing in your portfolios put the money in the stores, clean them up, get some good customer service and morale and pride going on and give Wal Mart a run for its money. Those who know what Wal Mart is all about will SUPPORT YOU!!!
I really have to force myself to shop there. I feel a sense of loyalty since I have been shopping there from young. My whole family grew up with K-Mart. I have to totally agree with the article, the items are overpriced and the sales people are extremely rude. I go out of my way to avoid the larger monopoly stores like Walmart. If they were more competitive and the salespople were nicer I believe the store would make it.
Perhaps Big City K Marts are different from our local one in MA. The service has been good, people nice, no carts left in aisles, the store is clean and organized and goods are at a reasonable price.
During the 2012 Holiday shopping season, things were bustling. The reported items may reflect some stores, but certainly not all of them.
There are only so many people that have money to buy things with and their likes determine where they will shop. If you are running a good store, you should see profit. If not, expect a loss. If you manage one do your job.
Even stepping inside a Kmart is a depressing experience, you seriously question what year you're in after 10 minutes. The downfall of Kmart is based on multiple factors true, but I think the most glaring factor of all is that the corporation as a whole has just given up and are holding on to milk the last dollars from what used to be a top earning cash-cow. If Kmart is to survive they need more than just a new look, better atmosphere for the stores, they need a serious attitude adjustment from TOP to BOTTOM.
But I seriously doubt that will happen, I feel Kmart and Sears have passed the point of no return. It's all a matter of time - the end is in sight.
At one time, Walmart advertised "made in America". Now, as with other stores, you can hardly find anything made in the USA. I used to get nice ladies tee shirts, shorts, pants, etc. at Walmart that were well made and lasted forever. Now you can't even get a decent pair of sweats there. Their tee shirts are thin and cheap looking that I wouldn't wear to bed, let alone out somewhere.
You have a hard time finding any ladies clothing or mens clothiing at Walmart. I couldn't even find where the junior, plus,& ladies began and ended. Those departments are too small. They need to stock them up and separate them. They all seemed to jumbled up together."Needless to say, I no longer shop Walmart.
Please don''t close our KMart.. The Mall is too far away to run in to pick up a few items and I couldn't afford them anyway. I'd pay a little more at Kmart to avoid Walmart any day.
I worked in management at K-Mart back in the 60's and 70's. K-Mart's demise was upper management
treating in store managers poorly. Many managers and asst managers at store level were fired. New managers were hired and paid less. There was no loyalty among managers and that filtered down to hourly employees are well. Also Walmart operated on less profit on hard-lines and soft-lines. K-Mart did not keep up with the trends in electronics and clothing. End of story!
Would hate for them to close. Whenever we allow Walmart in the area, other stores suffer. I would never shop at the cut throat store that is Walmart. Hate Walmart and the way they treat their workers. What a gready company.
Copyright © 2013 Microsoft. All rights reserved.
While caffeine unquestionably improves focus, it blocks the ability to let the mind wander and form original ideas.
- Western wildfires raise the question of who pays
- 'The Wolf of Wall Street' is set to prowl again
- What vintage aircraft fly on: Donations, enthusiasm
- Obamacare surprise: Young people want coverage
- Urban Outfitters pulls drug-themed gear
- Donald Trump rakes in millions selling name to world
- EA's Simpsons game triggers gun fans' ire
- George Zimmer vs. Men's Wearhouse over firing
- New $25,000 rifle is fully loaded -- and then some
The S&P entered today's session with a week-to-date gain of 1.5% as investors expected reassuring words from today's Federal Open Market Committee Statement.
Stocks traded with slim losses until this afternoon's FOMC Statement and subsequent comments from Chairman Bernanke sent equities and Treasuries to their lows while also providing a significant boost to the dollar.
Today's Statement was ... More
More Market News
Plus, after much ado, Softbank is oh-so-close to acquiring Sprint.