Kmart Essay

With the 1950s came massive expansion for Kresge, largely including food departments, and in 1962, the company opened its first real discount store; Kmart. The Kmart stores were instantly successful, and in 1963 there were 63 stores. Sales continuously rose, for in 1969 with 1,022 (Kresge, Jupiter, and Kmart) stores internationally and $4.6 billion in annual sales. Due to the success of Kmart, Kresge was changed to Kmart Corporation in 1977.
Sales fell due to better competition from 1980-1990 where Kmart paused plans for new facilities and instead focused on the interior of current stores and diversifying operations further in attempts to regain sales (Lewis 2003).
Sales fell in 1994 fell to $34.6 billion from $37.7 billion in 1993; a loss

They have the opportunity to survive while Sears does not because they are adaptable, but different, companies that strive to provide what the internet can and cannot, both through ambiance and their websites. They know how to make their stores exactly what they need to be. For instance, Wal-Mart bases itself around the idea of having the lowest prices. Therefore, they do. Their stores are no-frills and they avoid expensively branded items as well as a wide variety of products that is ever-changing with local trends. Target focuses on saving money as well, but targeted towards those who also value image. Because of that, they offer more brand name apparel and home decor. Kmart in particular, on the other hand, defines itself as a “mass merchandising company that offers customers quality products through a portfolio of exclusive brands and labels.” Which is a vague description of what the stores offer that could very well be applied to any retail store. In a sense, it has no definitive niche compared to its competition, as in any given Kmart store one could expect to find brand name items in a low-budget environment (Leinwand & Mainardi