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Kmart Bankrupt

In: Business and Management

Submitted By jesspitb
Words 513
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Kmart has made some horrible decisions in the past few years. They have numerous competition throughout America from Wal-Mart and target. Kmart failed to keep with the times and update their stores. The store designs have not changed since their inception and it seems that no money was ever invested into modernization. Even their cash registers were out of date and obsolete from the current systems in use by Wal-Mart. “No matter what Sears said, they weren’t keeping the promise. Consumers are pretty sophisticated, and they walked into these stores and it was the same old place … without the freshness, the excitement or the interactivity of the experience.” (Knutson, 2011). Kmart is owned by Sears Holding. In recent years Sears has closed dozens and dozens of Kmarts. I believe this is due to the lack of interest in the store…the old dirty feel of Kmart is not on par with that of Wal-Mart or Target. The assumptions by Kmart management were that sales would continue without change to the store as they had for decades. The second assumption was that acquisition of other chains such as Walden, Borders, and Office Max would boost their sales by expanding their product sales line. The first assumption was incorrect because Kmart failed to recognize their competitor’s advantages. One key advantage was simply the new updated feel and cleanliness in superstore shopping that Wal-Mart offers. The second assumption was incorrect also because during Kmart’s buying spree they failed to see that the business’ they were acquiring were also following failing business plans. In fact Borders has since gone completely out of business. If I was Kmart upper management, I would have simply looked very closely at my competition as soon as our store profits started to dwindle. Kmart has been around for a while….and it was the rise of Wal-Mart that destroyed Kmart. No buying…...

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