When Kmart came out of bankruptcy the first time, they could have become a success. They had profits, a customer base, and the cash and financial resources to build new stores. Eddie is either a failed retailer or a cheat. Either he deliberately wasn't trying to run a retailer, or he was such a bad retailer that he couldn't figure out that he needed to build new stores to grow sales and profits. A base of stores built in the 60s, 70s, and 80s was hanging on in 2003, 2004, 2005, but by 2019 it's downright ridiculous! To put it in perspective, many Kmart are operating out of buildings that were around prior to the moon landing! Anyone with any foresight in retail should have been able to see the buildings needed to be upgraded.
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"Anybody who believes this has never ever been to Target. A great example of phenomenal marketing and investing in stores for greater returns and a premium experience. Kmart never understood that"
There is a very nice Target literally one mile from the old Kmart HQ. I often wondered if the Kmart PTB ever got off their butts and took a look at that store. If they did, they learned nothing
Kmart might have had a chance if Martha Stewart had bought it. She has said she had the chance and passed, but wonders if she could have made a go of it. Her products at Kmart were pretty successful
Kmart's (and Sears') strategy for the past decade or so was to woo customers in with Shop Your Way. Sears Holdings took it too far and basically gave away what amounted to untold millions of dollars of free or very low cost merchandise to many members, and now have nothing to show for it in terms of sales and volume. Instead of a taking a more modest approach toward incentivizing members, they took what little cash they had and went full force with the incentives. In the meantime, investment in the stores, its logistics/supply chain, advertising and inventory was lacking at best and nonexistent at worst. Basically, they bet the farm and lost it with SYW because the customer base certainly hasn't increased as normally anticipated with a rewards program.
Kmart was popular because of the blue light special(s). Once the novelty wore off and Kmart ended the promotion, people realized they could buy the same junk at Walmart, Pamida, even JC Penney.
Face it. Kmart went bankrupt for a reason. Lampert should have left it alone instead he chose to merge allowing Kmart and their excess baggage to drag Sears down with it .
What drove the stake in Kmart’s heart was a combination of deteriorating stores, uncompetitive prices and a downgrade in product. There were two test stores in Rockford, IL that were k–led before they ever had a chance to make it. Kmart was DOA as soon Lampoon bought it.
I agree about Target be a great retailer, but there are hundreds of successful retailers who aren't Target. I believe it was the deteriorating buildings out of the retail loop that mostly drove customers away from Kmart.
Anybody who believes this has never ever been to Target. A great example of phenomenal marketing and investing in stores for greater returns and a premium experience. Kmart never understood that. Before or after Eddie. Even in 2002 their stores looked like 1975 everything about them felt cheap - that strategy wasn’t going to last against the resurgent Target approach or even Wal Mart who also re-did virtually every single store to give it a clean look and expand it. Now, they’ve both made shopping a gamers experience whether done online or in person. Nobody has a better app than TGT.