This post is part of a feature on companies and products that our bloggers think are in need of a makeover. See all 26.
When Kmart bought Sears to become Sears Holdings Corp (NASDAQ: SHLD) it seemed like a perfect match. Here were two retail titans of the 1970s who had completely missed the boat of modern big box retailers. Instead of trying to sell dowdy clothes, Sears could have concentrated on hardware and become Home Depot (NYSE: HD). Instead of selling dowdy everything with surly service, Kmart could have become Wal-Mart (NYSE: WMT).
Now what both stores need is a makeover. They need to become that bright, wide-aisle store that people love to shop at because they find neat things they didn't know they needed. Heck, if the Kmart in my neighborhood could just manage to keep its shelves stocked and not hire the surly, it would be a step up.
Both Kmart and Sears know they have trouble, but it just may be too late to make the changes. Kmart already went through bankruptcy and closed about 300 stores. They even came up with a bright, open store prototype with wide, well-lit aisles. But then they couldn't afford to really roll it out, says Shopping Centers Today. And many think they didn't close enough bad stores.
As of late October, 2008, the stock trades at about $60, down from $190 last June and $100 a month ago. That means its fallen much harder than the market as a whole. Some discount retailers are doing OK, cashing in on consumers' need to buy cheap. Wal-Mart is actually trading for more than it was last June -- or even last October, the market peak.
Kmart is reacting to the recession and credit crunch with another retro idea: bringing back layaway. Oh, man I now I'll really feel like I'm shopping with my mom in 1974. I remember that she bought me a coat on layaway once from the Robert Hall store. While getting people to buy on layaway may be great to wean the country off credit cards, I really don't think it's going to improve the image of Kmart much.
Does Kmart need a makeover? What would you suggest? Be sure to check out the other makeover posts.
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Reader Comments (Page 3 of 3)
11-13-2008 @ 3:23AM
Micah said...
K-Mart was THE store in the 70's. I remember as a kid, I would go to K-Mart to spend my allowance, and mom would always take me to get school supplies at the beginning of each school year. I remember seeing isles and isles of metal lunch boxes....I remember the popcorn smell also....Oh to be a kid again....
11-15-2008 @ 6:10PM
julie said...
the kmarts in louisville are horrible. dirty inside, the clothes are old fashioned looking. i went for the first time in a long time when i heard they had layaway and walked away. there was nothing there i wanted, the store needs upgrades and better products. it is sad but should close their doors.
11-16-2008 @ 9:32AM
Mary G. Boys said...
I have shopped at Kmart stores all over the country, but for the last few years, I no longer bother.
My last trip to the closest Kmart (Wilmington, NC) found the store poorly stocked, what merchandise there was looked inferior in quality, the same small, nasty ladies' restroom, and surly, insufficient help as last time. What a shame! With several Walmart Supercenters and a Target nearby, why bother?
11-27-2008 @ 9:41AM
Bobby Richardson said...
When Wallmart got it's start , thier motto was everything is "Made in America".Why not try this with K-Mart? Put up "Made in America" logo on at lease thirty five percent of your items and see what happens. What have you got loose? Everything in department stores have is "Made in China."
Thanks for taking the time to listen to my idea, Hope it helps. Made in America will benefit us all!
Bobby
11-25-2008 @ 8:42AM
Pam said...
The K-Marts here in Asheville (4): one newer one is more of a pleasure to shop at - the other three are older and dingy. They are a little better stocked this year, and the layaway is great. More cashiers and a better store layout (seasonal items at front like Walmart) would help. Their shoe selection used to be awesome, now only pretty good. One of their strengths is selling lower priced versions of Sears appliances (e.g. vacuum cleaners). Their locations (so far) are better than Walmart's, so they could do better here if they tried.
12-06-2008 @ 8:15AM
Piffel said...
The layaway plan was a great concept considering the ecconomy. They failed once again. People standing in a very long line for a very long time to put the things in layaway, to make payments and to unsuccessfully try to pick them up. Christmas toys thought to be safely tucked away at kmart while payments were being made were missing from the box. We have two Kmarts within 6 miles of each other (north Dayton OH) I wouldn't shop at either. Nor would I allow my highschooler to take a part time job at any business where the store manager screems at his employees in public. Calling the 1 800 kmart number is a joke when the person feilding the calls is employed by "the screemer".
12-07-2008 @ 9:34PM
lragb said...
I worked at Kmart over 26 years and a lot of what I have read here sounds very familiar. The biggest concern seems to be the shelves are low stocked or out completely. I remember seeing that happen a few years back, take a guess when. The checkout issue, every time I go into my local Kmart I understand why customers get so upset. The checkout operators are leaned up on the counters chewing gum like cows chewing cuds, talking on their cell phones and totally ignoring their registers. Kmart doesn't want to hire GOOD employees that care, they just want whatever will work cheap and that's what they got and look where it's put them... What a shame.
12-11-2008 @ 8:20AM
Wilbur said...
I worked for KMart in the early 90's. It was always
cut payroll, don't give big raises, find a way to dismiss the long-term higher wage earners to save money. Corporate bigwigs would fly in and rip the store management apart and threaten their job if things weren't perfect dispite the fact it was impossible with the quantity of man-hours allocated. Satisfaction I get is many of those
"suits" have been fired who thought they knew everything, (as shallow as that is).
12-12-2008 @ 7:42PM
Ks said...
But they do those stupid Mattel Hot Wheel Day's doesn't that help the K-Marts.LMAO.
The two in Wichita,Ks are so filthy you might get a unknown disease in there store they are gross close them up.