Attention, Kmart Shoppers: Flat-Line Special

[marmar]

(Bloomberg Businessweek) Kmart, the discounting pioneer owned by Sears Holdings (SHLD), is in the throes of a mass shutdown of stores. After a bad 2011 Christmas, Sears Holdings said it would close up to 120 Sears and Kmart locations; as of January, there were just over 1,300 Kmarts in the U.S. and territories, 800 fewer than a decade earlier, when Kmart slid into bankruptcy as an independent company. In February, the parent posted its biggest quarterly loss in at least nine years. It lost $132 million in the July quarter, and analysts expect another loss, on a 10 percent drop in sales, when the company reports on Thursday.

Today, as Amazon (AMZN) wallops all of retail, discounting’s old Big Three has been duopolized down to Wal-Mart (WMT) vs. Target (TGT). According to Bloomberg Industries, department stores now make up less than half the share of the retail industry’s core “general merchandise, apparel and accessories, furniture and other” sales than they did 20 years ago. As for the subject of 30 years ago, that’s when Kmart’s rights to Charlie’s Angel Jaclyn Smith’s clothing line (it still exists) might have been worth something.

It must be asked: Are Black Fridays numbered for the Blue Light Specialist?

“If you’re Kmart, there’s no reason for being,” says Howard Davidowitz, chairman of Davidowitz & Associates, a retail consulting and investment banking shop in Manhattan. “Are they building stores? No. Are they improving anything for the customer? No. Sears Holdings as a company is in liquidation.” ............(more)

The complete piece is at: http://www.businessweek.com/articles/2012-11-14/attention-kmart-shoppers-flat-line-special

[PoliticAverse]

1. The Sears-Kmart combination seemed to be based on the idea you can build a successful store...

from 2 declining ones. Made no sense.

[Barack_America]

2. Their stores are just depressing.

Poor quality merchandise. Poor design and layout. A stark contrast to stores like Target.

Decent garden section, but I really can't give them much else.

[MineralMan]

3. K-Mart stores should just close, donate everything to Goodwill

and call it a day. That's my opinion.

[HopeHoops]

4. Fuck Target and Fuck WalMart. Both are TOO big. K-Mart rocks.

You can actually get US made products in K-Mart. The stores are a reasonable size and I can always find a parking space near the door. I've got a handicapped placard but rarely need to use it there. I can have a fairly large list and be in and out in 15 minutes. It takes 15 minutes to PARK at the other two.

Yes, it has a reason to exist. A couple of years ago they had the quilted flannel shirts on clearance for $1 and $2 each. I bought about 30 of them (large-XXXL) and took them down to the shelter for homeless men in Harrisburg. They were US made. I get US made toothbrushes, jeans, other clothing, housewares, and hell, even the toilet flapper I just bought was US made. Fortunately, neither of our K-Marts (or our Sears) are on the "to close" list.

They're also typically located in plazas with damn near everything else I need so I save time, gas, and wear on my back by shopping there. I haven't been in a WalMart or Target in at least four years (maybe more) and only because I had to pee. They won't get my money.

[bongbong]

7. Long time fan of Kmart here

First shopped at Kmart in the 1970s. Great store back when it was the only department store-type discounter. But retail is definitely getting squeezed. Margins have disappeared.

> Yes, it has a reason to exist. A couple of years ago they had the quilted flannel shirts on clearance for $1 and $2 each.

As great as it was of you to get those shirts and then donate them, it's almost a sure bet that selling them at that price was yet another loss for them. You can't keep losing money and hope to make it up on the volume any more!

[HopeHoops]

9. I remember Ames, Zayre, and Jamesway too. As for the shirts...

... it's often more expensive to store inventory than it is to let it go for peanuts. Besides, while those aren't a good example, with most clothing it's impossible to predict the styles that will be popular the following year.

[Brother Buzz]

5. Kmart Sucks!

[Comrade_McKenzie]

6. Kmart is a joke. They hired me in 2010 as a permanent employee...

Then I was laid off after Christmas after 2 months of working there.

[DemocratSinceBirth]

8. Wasn't This The Same Bankruptcy Process Romney Wanted To Put GM And Chrysler Through/nt