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Kmart: Striving for a Comeback
INTRODUCTION
Headquartered in Troy, Michigan, discount and variety retailer Kmart is among the worlds largest discount chains. For any given product, Kmart normally carries one or two national brands as well as several second tier brands and a few third tier brands. Kmart's well-known private label brands include Martha Stewart Everyday, Sesame Street, Route 66, Joe Boxer, and Jaclyn Smith.
As of 2003, Kmart had 212,000 employees at approximately 1,660 Kmart discount stores and super centers in 490 locations within the United States, Puerto Rico, The Virgin Islands, and Guam. The company also has a total of 17 distribution centers.
Kmart is the fourth largest general merchandise retailer in the world and the third largest discount retailer in the United States. The retailer is struggling with head on competition from Wal-Mart. Kmart is aware of the main problems associated with its loss of business to Wal-Mart; however, achieving a strong competitive position with Wal-Mart is difficult for Kmart due to several major problems that they are currently experiencing in areas such as housekeeping, inventory, and customer service.
Kmart's reorganization plan focuses on improving the company's weak competitive position and restoring financial solvency. If these goals are achieved Kmart will be in a better position to make significant improvements that would ultimately result in the company emerging out of bankruptcy. Attracting new customers to Kmart involves new strategies that they have put in place to help them to compete with Wal-Mart their number one competitor as well as Target and Kohl's their s ...