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
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For one thing. For it to be a discount store it sure is expensive, and every time you go in there it's only 2 or 3 people working. No one in the store is there to help you, because they are either at the resister, in the customer service booth or stoking the selves. Kmart wake up!!! Discount means discount. You will sell more by pricing it for less and not just 2 or 3 penny's. You get it in bulk so I know you are not paying that much for it, and selling items at a 200% mark up. Not good in this economy, people are just trying to make it and all you people are worried about is making a profit.
Even the stores like this Die after the new wears off K-Mart can thank Wal-Mart for the death blow !
AND THEY BOTH ARE KILLING SMALL GUYS ON MAIN STREET !
AND HAVE RUINED RETAIL FOR ANY ONE TRYING TO SURVIVE !
They try to run it in the ground, funny they have something on sale and the kids they hire, ring it up and it comes up about $20.00 less than the sale. No one says a word, happened to me twice in a few months.
WITH SALES. I THINK ITS A MATTER OF TIME .
Ok so close the Kmarts and the Sears and what do you left Wal Mart and Target... No thanks.
Sears corporation needs the merge Sears and Kmart and give Wal Mart a run for the money. How can Sears do this? Simply Wal Mart doesn't sell appliances, good hand tools, and a lot of the things Sears sell.
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