I'm looking to start something new here, anytime a new piece of information comes on Sears or Kmart I will do a mini-post on the topic and express my opinion. Note that my opinion is my own and not anyone else's.
Looks like Kmart has a new strategy for survival. It appears that Kmart is planning to implement a "fill the shelves with products for bankrupt companies" system similar to Ollie's Bargain Outlet. Its an interesting choice, but hopefully it will be a means for them to continue to survive. Perhaps this means Kmart will no longer compete with stores such as Target and Walmart, but rather Big Lots and Ollie's. Kmart, in my opinion, though will be better as I know it still does carry some product lines that neither Big Lots or Ollie's do.
What a way to put a spin on it - "The path to making Kmart great again starts with sourcing truly brag-worthy deals that can only be found at Kmart." Despite the wording, it still really is a good idea, in my opinion. Obviously they're failing as they are, so retooling the chain should have a better effect. Items will probably be cheaper as well. And if this concept somehow does turn things around for them, I could see them switching to it completely, which probably would require less square footage than many of their stores currently occupy, so their stores could downsize and rent out the unused space, something I'm sure Mr. Lampert would be interested in...
ReplyDeleteThe funny thing is that sometimes there aren't any deals to be found currently. As I mentioned in the rant post, some product lines do not seem to be put on clearance anymore. As a result, how can you find a deal?
DeleteI will admit though I have saved quite a lot of money by being a Shop Your Way rewards member. The savings I've gained I often turned around and used on product lines that may not be on clearance. So I guess it can work out.
Big Lots' stores seem to average around 35,000 sq. ft. but remember Big Lots does not carry clothing like Kmart. Clothing often takes at least 1/3 of a Kmart or in some cases half of the store. There are some Kmart locations out there that are only around 40,000 sq. ft.
So, I guess it could work.
I'm hoping to visit one of these dinky stores if I take my planned New England road trip this year.
Now Kmart wants to be Big Lots. The strange part is that Big Lots in recent years has been trying to add regular non-closeout discount store items, especially in their home, seasonal, food and furniture departments in addition to closeouts, basically trying to be a mini-Kmart in some aspects! Honestly, I hope this works out for Kmart. I'd rather see them survive as some kind of Big Lots hybrid rather than die doing what they are doing now. Kmart should be great again. I just hope that they try to stick with this anyway, and don't give up on it after 6 months.
ReplyDeleteI'd rather see Kmart live on and move into the Big Lots category rather than see it die as well. Kmart does have a record of giving up on concepts, so hopefully it will play out.
Delete