2707200X From United States of America, joined Mar 2009, 8023 posts, RR: 1 Posted (3 years 6 months 1 week 6 days 1 hour ago) and read 2366 times:
With the recent mega mergers of US Airways and America West, Delta and Northwest, United and Continental, Southwest and Air Tran and even Macy*s and Federated do you think that the acquisition of K-mart is being thought of by Wall-Mart or even Target?
K-Mart is in a distant third place behind Target and Wall-Mart and they are the only other store that shares the same sales format of the prior two plus they are owned by Sears which uses multi level structures of an inclosed shopping mall and is not free standing. Could an acquisition by a format competitor also bring Wall Mart or Target into the multi-level in-mall format if they acquire Sears?
Let the speculation begin.
"And all I ask is a tall ship and a star to steer her by." John Masefield Sea-Fever
Quokka From , joined Dec 1969, posts, RR:
Reply 5, posted (3 years 6 months 1 week 5 days 21 hours ago) and read 2315 times:
Here in Australia, the structure and ownership is different to that in the US with both Target and K-Mart being part of the Coles Group Limited, which in turn is owned by Western Australia based Wesfarmers. They operate as separate companies within the group but are broadly similar. Target used to be a bit "better" in terms of product quality and store lay out, but they seemed to have joined the race to the bottom with K-Mart.
bill142 From Australia, joined Aug 2004, 8434 posts, RR: 9
Reply 7, posted (3 years 6 months 1 week 5 days 19 hours ago) and read 2291 times:
Quoting Quokka (Reply 5): Target used to be a bit "better" in terms of product quality and store lay out, but they seemed to have joined the race to the bottom with K-Mart.
Both are utterly awful. And what's stupid is that Coles Group pits Kmart and Target against each other. There are so many shopping centres with a Kmart and a Target in them. I can't even work out what market segment Target is supposed to fit in to. No wonder Coles had to auction themselves off to Wesfarmers, Woolworths was just raping them. And a friend who works at Coles was telling me that the new policy, at least for Coles, is that the customer is right, no questions asked. Ie, you could return your half used bottle of milk that you let go off and get a full refund.
LTU932 From Germany, joined Jan 2006, 13864 posts, RR: 50
Reply 8, posted (3 years 6 months 1 week 5 days 18 hours ago) and read 2287 times:
In any case, due to the size it would be likely that this would have to be checked by US antitrust authorities first. Even in Germany, this could take a while (though I have no idea how long an antitrust review would take on average).
LTBEWR From United States of America, joined Jan 2004, 12878 posts, RR: 12
Reply 9, posted (3 years 6 months 1 week 5 days 17 hours ago) and read 2263 times:
No need to buy into a retail disaster that will probably be out of business (as to K-mart) in a few years. They just opened up a Walmart about a mile from me and it is closer and a lot better than the 2 K-marts that are not further away. I also have a Target near me as well. I haven't been in a K-mart in several months due to their high prices, curmmy appearances, lousy service, limited stocks.
The irony is that K-mart, Target and Walmart all developed at the same time in the early sixties, K-mart from '5 & 10 Cent' variety stores chain, Walmart from a small regional group of variety stores. K-mart grew quickly in the 1960's and 1970's, then stalled out in the 1980's, ditching many stores after a bankruptcy about 8-9 years ago. Target also started in the early 1960's from the Minneapolis based Dayton Department Stores company, with the department stores side now a part of Macy's. Target has been growing fast in recent years, incuding in urban areas that Walmart has had difficulty getting into. Meanwhile, all 3 have destroyed local and regional disccount store chains in most parts of the USA.
The deeper issue is that virutal collaspe of anti-trust law enforcement in the USA over the last 30 years that has allowed the growth by mergers and acquisitions of mega companies, removing local ownership, local benefits of profits and so on.
Go3Team From United States of America, joined Mar 2004, 3266 posts, RR: 17
Reply 10, posted (3 years 6 months 1 week 5 days 13 hours ago) and read 2223 times:
The last time I was in a Kmart, was a year ago. My wife and I were out of town and she was not feeling well. I stopped in to get some cold and sinus stuff for her. It was kind of a"dirty" in there - old and unkempt.
Starbuk7 From United States of America, joined Apr 2008, 599 posts, RR: 5
Reply 11, posted (3 years 6 months 1 week 5 days 13 hours ago) and read 2221 times:
Most of the K-marts were here in SOCAL were bought and changed to Sears Essentials a couple years back and they are still just as bad and the K-marts were. Target and Walmart are still much better all around and I don't envision either K-mart or the Sears Essentials being around much longer.
seb146 From United States of America, joined Nov 1999, 11123 posts, RR: 15
Reply 13, posted (3 years 6 months 1 week 5 days 12 hours ago) and read 2210 times:
I was just at our K-Mart last week. They are all so dirty and poorly run, it seems. No customer service, not much in the way of inventory and just generally blah.
Quoting Starbuk7 (Reply 11): Most of the K-marts were here in SOCAL were bought and changed to Sears Essentials a couple years back
I would think that is what Sears would do with them. My mom lives in a town where there is only K-Mart and the regional store Fred Meyer. Wal-Mart is 30 miles away, although there is now talk of Wal-Mart building in her town. That particular K-Mart was just built in the mid-1990s and it is even dirty and not well run. There is a Sears appliance store in her town, so I would think they could merge the two. Makes no sense they would have two separate brands taking up all that space and money.
The only link between the US Kmart and the Aussie one is the name, as Kmart sold their interest in it back in the 1970s.
I cannot even remember the last time I went into a Kmart, and the one closest to me somehow survives since the nearest Walmart locations are about 10-15 minutes away depending on traffic. I prefer Target and Walmart over Kmart.
When Kmart bought out Sears, it was thought that they'd abandon the Kmart name and put the Sears name on their stores. Then again, both names have gotten bad reputations over the last 10+ years. Sears used to be known for quality products (like Craftsman tools) and these days, you can get better store brand tools at Home Depot or Lowe's.
N801NW From United States of America, joined Jul 2004, 744 posts, RR: 1
Reply 15, posted (3 years 6 months 1 week 5 days 3 hours ago) and read 2113 times:
Walmart, Target, and K-Mart were all founded in 1962. Their fortunes have been wildly divergent. At one time, K-Mart was the largest US discounter. It appears that the K-Mart stores are being run as cheaply as possible until their real estate value can be monetized. I don't think Eddie Lampert ever really wanted to be a merchant.
cgnnrw From Germany, joined May 2005, 1130 posts, RR: 2
Reply 16, posted (3 years 6 months 1 week 4 days 16 hours ago) and read 2059 times:
I'm surprised at the low opinion many here have of K-mart. The town (SE Pennsylvania) where my parents live has a K-mart and a Walmart. K-mart has been there for over 25 years, Walmart less than ten. My parents prefer K-mart over Walmart. The store is clean, well stocked, prices are comparable and the pharmacy is cheaper than the one at Walmart. I guess it all depends where you live.
falstaff From United States of America, joined Jun 2006, 5961 posts, RR: 27
Reply 17, posted (3 years 6 months 1 week 4 days 14 hours ago) and read 2036 times:
Quoting 2707200X (Thread starter): Sears which uses multi level structures of an inclosed shopping mall and is not free standing
There are some Sears that are stand alone. Lincoln Park and Liviona, Michigan are the two that I know of.
I like K-Mart better than Walmart. They qualiy of the store can vary widely. The two Kmarts that I go to on a regular basis are very different. The Kmart in Woodhaven, Michigan is pitiful, but the Kmart up the road in Taylor is a great store.
I used to visit the Ellisville, Missouri store a lot back in the 1990s and it was always a good store too. I was just there a few months ago and it was about the same as I remembered.
Before Walmarts were everywhere their stores were kind of dumps.
type-rated From United States of America, joined Sep 1999, 4843 posts, RR: 19
Reply 18, posted (3 years 6 months 1 week 4 days 10 hours ago) and read 2011 times:
Since the Kmart meltdown of about 10 years ago, there is not one Kmart in the Houston area. That says something about a national chain not having a location in America's fourth largest city.
Back in the mid 90's Kmart built a SuperK store in Houston. Even after being open only a few months it looked dirty and decreped. After only about 5 years they closed it down and tore the building down. Just think how much money they lost on just that one unit!
I'm willing to bet that they'll just mosey along losing money until someone realizes that the brand really has little value in the eyes of the public and they'll just shut them down. They'll be going the way of Zayre.
Fly North Central Airlines..The route of the Northliners!
CompensateMe From United States of America, joined Jan 2009, 904 posts, RR: 0
Reply 19, posted (3 years 6 months 1 week 4 days 9 hours ago) and read 1998 times:
Quoting N801NW (Reply 15): It appears that the K-Mart stores are being run as cheaply as possible until their real estate value can be monetized. I don't think Eddie Lampert ever really wanted to be a merchant.
This is key. K-Mart's remaining strength is in its real estate. As the pioneer of discount retail stores, K-Marts owns (or has long-term leases on) prime real estate in many crowded markets. Not much doubt K-Mart was intending on divesting these locations for re-development (sell them to other big box retailers, or have them redeveloped into mixed-used projects) but the collapse of the real estate market delayed their plans. K-Mart's other strength was its urban locations, as Wal-Mart and Target generally avoided impoverished urban markets, but that trend's changed in recent years. In the mean time, K-Mart's changed its business plan from low-costs to heavily promotional. Yet it hasn't expanded, nor has it remodeled its stores, since its bankruptcy.
Sadly, K-Mart might have still been on top had it not been mismanaged in the '80s and '90s. Capital was rarely put into its stores, it failed to invest in technology or modernize its distribution network (while investing heavily in failed ventures) ultimately leading to its collapse.
My first ever job was at a K-Mart that stood alongside a Farmer Jack (a large grocery chain in a similar situation as K-Mart that eventually went out of business). On a typical Saturday, both stores were incredibly busy and overtime was fairly common. Eventually Meijer and Kroger moved into the area and the crowds disappeared. While K-Mart is still in business, and the Farmer Jack was acquired by another grocery store chain, when I return to the area, neither store is ever very busy. On a recent trip to K-Mart (my first in many years), I noticed that most of the staff is still there many years later even though the store employs only one-fourth the staff it once did. I firmly believe the only reason both stores are still open is that they're holding out for Wal-Mart (there's no Wal-Mart or Target within 20-minutes, and neither store would be in the commuting pattern of most residents, and the spot would be ideal for such a store). Of course, the residents (it's an affluent area) would protest such a store (as they did Meijer and its attempts at building in four locations) even though it'd probably be a good thing for high school jobs.
[Edited 2010-10-09 12:03:26]
Hypocrisy: "US airlines should only buy Boeing... BTW, check out my new Hyundai!"
charles79 From Puerto Rico, joined Mar 2007, 1321 posts, RR: 5
Reply 22, posted (3 years 6 months 1 week 4 days 5 hours ago) and read 1963 times:
I'll echo what others have already stated in that neither Target nor Wal-mart would really benefit from such a relationship. IMO K-mart's best move would be to use the slightly better accepted Sears name, get rid of K-mart for good, and find that niche that would keep them relevant. And clean the damn stores while they're are at it!
Quoting cgnnrw (Reply 16): I'm surprised at the low opinion many here have of K-mart.
Have you been to a K-mart lately?
Kidding aside, I grew up with K-mart as in Puerto Rico we were spared from the Wal-Mart nightmare until the 1990s (I believe Target is just about to open their first store in the Island). I still have very fond memories of it, though as a child/teen I wasn't aware of the devastating effects their presence (and their competitors) had on local small merchants. Still, it always had what we needed for a reasonable price and relatively decent service. I found it odd when the company bought Sears as we grew up treating Sears as a "posh" store! (well, for us even the Ponderosa restaurants were high-class!)
Fast forward to 2010 and I live in DC where the only option we have (thankfully) is Target; they opened a brand-spanking new two level store in Columbia Heights with easy Metro access. It's usually busy, well-stocked and clean but now I try to sponsor the local merchants more and avoid the "big box" stores as often as possible. Haven't been to Wal-mart or K-mart in over 6 years and intend on keeping that record going.
CompensateMe From United States of America, joined Jan 2009, 904 posts, RR: 0
Reply 23, posted (3 years 6 months 1 week 3 days 10 hours ago) and read 1918 times:
Quoting falstaff (Reply 21): Until the mid 1990s I was never in a Walmart that wasn't a dump.
Even the newest Walmart's reek of trash. I travel between the Chicago and Detroit areas weekly and often arrive at my suburban home in the middle of the night (2AM-4AM). In the last two years they've built a Walmart and Meijer (yes, side-by-side) near me and since they're both open 24-hours, I'll take advantage. Most of Walmart's clientele drives into the (affluent) community from a neighboring (poor) city. It never ceases to amaze me how they're dressed and act, how they bring their pre-teen children to shop (in the middle of the night!!), how they think it's perfectly OK to consume food in the store and discard the packaging-without paying and how they'll discard unwanted merchandise anywhere (you know, frozen food into the shoe area). Meijer, OTOH, bring a much nicer group of people into the store, even though it sells the same groceries/merchandise as Walmart and is a brief walk away.
Hypocrisy: "US airlines should only buy Boeing... BTW, check out my new Hyundai!"
KGRB From United States of America, joined Sep 2010, 687 posts, RR: 1
Reply 24, posted (3 years 6 months 1 week 3 days 4 hours ago) and read 1886 times:
I hate to dump on K-Mart too, because I have good memories of them as a kid, but now they're just plain awful. There is only *one* remaining K-Mart in all of northeast Wisconsin, a store built in the 1970s that sure looks like it. It's just down the road from an equally bad and dated Sears store on Green Bay's west side.
When K-Mart began to struggle after the early-2000s recession, they shuttered many stores in the area, including one of the only new K-Marts in the area (a store in Grand Chute, near Appleton). Since then, they've allowed the only remaining examples to continue to deteriorate. The second-to-last store nearby was built in the 1960s and had no upgrades before its closure in 2008. The popular opinion around here is that K-Mart will leave the area entirely when their lease is up at the Green Bay west side store.
Meantime, Target has built several new stores around here and Walmart has also built new stores and done extensive remodeling to their existing ones. Green Bay is also home to regional chain Shopko, which like K-Mart, has struggled financially in recent years. Shopko was bought out by an investment firm and has since made many changes to its product, logo, and is building new stores, so they're at least getting back on track.
I don't consider myself to be a serious shopper, but when I do go to a discount store, it's usually Walmart or Target. On rare occasion, Shopko. K-Mart doesn't even come to mind.
Δ D E L T A: Keep Climbing
: Is there still a K-Mart on US-20 Melton Rd. & Ripley in Gary, Indiana? That is where we bought the Saturday Night Fever 8track tape when new.
: Amen! It's like the merger mania of Federated Stores, merging John Wanamakers, Bambergers, Strawbridge and Clothier and naming them Macys stores in t