Rivals' results could mean Kmart trouble

http://www.freep.com/money/business/kmart31_20031231.htm

Kmart Holding Corp. isn't revealing anything about its December sales, but if mediocre results from larger rivals Wal-Mart Stores Inc. and Target Corp. are any indication, it wasn't a great holiday season, analysts said Tuesday.

"I'm concerned that the aggressive pricing strategies at Wal-Mart and Target lured customers away from Kmart," said Richard Hastings, retail analyst with credit advisory firm Bernard Sands. "The competitive situation is not a comfortable environment for Kmart right now."
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Look at that *Bush economic machine go!

Kmart---is a has been company----there isnt away in my opinion that they can survive----where Im located, they just built on the adjoining parking lot a new walmart next to to the kmart and over the christmas holidays Km was deserted----they cant compete, they dont stay upon late like walmart---and they dont have the stock or people, everyone left to work at walmart-----

They both have gotten too big and too disconnected from reality.

The thing that worries me about K-mart going down, is that Wal-mart has less competition. I do not like that at all. The owners of Wal-mart control too much power, already. And they seem to be extremely greedy and, IMHO, anti-American (Reg China's retail outlet).

Kmart just flat sucks. I'll never go there again. They should just give up and liquidate bec' it's inevitable. I give 'em 18 months.

We used to have SS Kress , Kresges , and another one with a "K" that escapes me right now.. When KMart came into being , way back when, it was through the absorption of these "dime stores".. KMart hit the ground as a cobbled together entity , comprised of dime stores.. Dime stores were a remnant of the depression era.. There were many back then.

We had Kress, Kresges, Neisners, Duckwalls,Ben Franklin, and Woolworths.. Bear in mind that this was in my small Kansas hometown.. People NEVER saw KMart as anything but a store with cheap stuff..

Ordinary people were ashamed to have it known that they shopped at those stores..

When Target started up they were big and bright and had better merchandise.. Since KMart was older and lots of their stores were actually spiffed up old stores, they could not really compete with Target..

I don't know about the origins of Walmarts, since they started in the south, but I always had the impression that they started up in areas that had little or no stores, so they were welcomed like manna from heaven..

I think KMart is just about done.. Even their "newer" stores look junky and crowded.. and they cannot compete with Target..

I remember them as one of the biggest dime store chains in the south when I was a kid.

Jazzgirl

Individually they were all downtown stores and did very well. They were smallish, and each had a "specialty"

SS Kress had lots of books and magazines and baby items,,,

Kresge had a lot of cheap toys and shoes and gardening stuff

Ben Franklin had a lot of craft items (crafts were starting up big in the 60's)

They all had lunch counters and soda fountains.. fabrics... cheapo perfume counters and cheap cosmetics... Hazel Bishop,Maybelline, etc..

We had one in the downtown section of my hometown complete with a lunch counter. As an aside, I remember when many Walgreen's had them too. Actually the K-Mart that I go sometimes isn't too bad and is kept up well. I find the Wal-Marts junkier-looking as a rule and very claustrophobic in their layout.

I wonder how much the Martha Stewart items have helped keep K-Mart alive. Without that draw, I bet they would have gone under a good while back.

While on the subject, do any of you remember the old W.T. Grant stores?

One thing you gotta say about those old places. They sold cheap stuff, but it was cheap to buy.. Now, stores sell cheap stuff but it costs way more than it should.

For years and years they sucked. Half-opened boxes on the shelf, no idea about design, etc. And Wal-Mart beat them on price and Target killed them on style.

However, I have become a K-Mart shopper. Why? The K-Mart by my house went through a redesign, became lots cleaner and got rid of the bad smell.

They are price competitive with Wal-Mart. Also this is real important for me - nobody goes to K-Mart. I can get in and out of there in 5 minutes.

I go to K-Mart for cheap, fungible products. For example, I bought a PS2 there - the price is the same everywhere and I got in and out. Same with golf balls.

Finally, I like to fish. Go to a sporting goods store and pay a 25% premium for lures, etc. They have a great fishing section.

Does this mean K-Mart will survive? I doubt it. Wal-Mart have structural expense advantages built in. But I like shopping there.

Finally, whoever is the Chapter 7 trustee when they do liquidate will make a killing. They have sooooo much real estate.