Kmart
| Kmart Corporation
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|---|---|
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| legal form | Corporation |
| founding | 1962 |
| Seat |
Hoffman Estates , Illinois , United States
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| Branch | retail trade |
| Website | www.kmart.com |
The Kmart Corporation is a retail chain , which was the second largest retailer in the United States in the 1980s.
Kmart was also represented in Canada a few years ago , but the shops were closed at the end of the 1990s or sold to the Zellers chain . Like the Target stores, kmart stores in Australia are owned by Coles Myer ; Coles Myer also owns the rights to the Kmart brand name in New Zealand .
history
Sebastian Spering Kresge founded his first store, a special market ( "five-and-dime store") together with a business partner in 1899 in Detroit , Michigan after serving as Representative Frank Woolworth had met. The store grew into the department store chain SS Kresge Co. , and in 1912 the chain was already operating 85 stores.
In the 1920s, Kresge ran larger stores that offered a wider range of products, prices, and merchandising. These are considered to be models for the current discount format. The first Kmart department store opened in Garden City , Michigan , in 1962 , and 17 more department stores followed in the same year. There was also a Kresge department store in Sonneberg, Thuringia .
In 1977 SS Kresge Corporation changed its name to Kmart Corporation .
Two brand names
Blue Light Special
Kmart became known for its Blue Light Special : As a surprise, a shop employee lit a mobile police light in a certain part of the market. This was seen as a sign that there are cheap offers and prices. During the 1970s Kmart succeeded in attracting the attention of consumers and thus displacing some competing companies from the market. This ritual disappeared in 1991 to change consumer buying habits. Another reason, according to the company, was that other companies had abused the Blue Light Special .
Blue Light Always
In place of the Blue Light Specials which entered BlueLight Always . The store manager announced a low-price zone in the store every hour on the hour. This action lasted 25 minutes each.
As soon as this announcement was made, all employees briefly stopped their work, clapped their hands twice, immediately held their clenched fists in the air in a victory pose and shouted “Blue Light, Blue Light!” - so at least the theory. This method should generate a stir and appeal to more customers. However, it failed because some branches did not follow this procedure. There is no evidence that any employee shouted "blue lights, blue lights" at all.
Crisis in the 1990s
In the 1990s, Kmart made a number of wrong decisions:
- no computerized systems were introduced, such as the main competitor Wal-Mart
- Kmart paid high dividends, which was at the expense of investments and modernization of the branches
- some business analysts believe the company did not have a distinctive brand name like its competitors, Target or Wal-Mart
- on the one hand Kmart tried to compete on price with Wal-Mart , on the other hand high-quality product lines from Martha Stewart , Kathy Ireland and Jaclyn Smith were introduced at the same time .
In 2001 Kmart tried to reintroduce the unmistakable and historical “blue light special”, which was known as a characteristic of the company by 80% of the population.
A stock scandal, caused by Martha Stewart in 2001, seriously damaged the company's image.
Kmart tried to fight against Wal-Mart with low discount prices and opening hours around the clock. However, Wal-Mart not only held against it with its own price cuts, but undercut them, and ultimately emerged victorious from the price war.
Finally, on January 22, 2002 , Kmart filed for Chapter 11 bankruptcy protection. Kmart had to close more than 300 stores in the United States and laid off more than 34,000 of its employees. The reason given was that restructuring was inevitable.
On May 6, 2003, Kmart filed for bankruptcy termination after Kmart Holding Corporation traded on the NASDAQ stock market (as KMRT) on June 10, 2003 . Kmart introduced a new standard market with a new logo, layout and color scheme (lime green and gray). The new store design featured wider aisles and better lighting. However, this left less space for the goods, which is why the product range was limited and the selection reduced.
Merger with Sears
Kmart and the retail chain Sears announced on November 17, 2004 plans to merge, which were implemented in March 2005. The new company created the third largest retail group in the USA after Wal-Mart and Home Depot , named as Sears Holding with headquarters in Hoffmann Estates , Illinois ; the new company continued to operate the two existing brands, Sears and Kmart . The new Sears Holdings Corporation will be led by a board of directors composed of seven members from Kmart and three members from Sears . De facto, despite the name, it was a takeover of Sears by Kmart.
Kmart stockholders received one share of the new company (stock exchange). Sears shares were converted into a combination of 55% shares (one old to ½ new share ratio) and 45% cash ($ 50 per share).
Web links
- Kmart Corporation website (in English)