PRESENTATION ON KMART

Lohit C S Maheshgouda Patil Praveen S Vinayak B

Type: Subsidiary of Sears Holdings Corporation Industry: Retail Founded: 1899 as the S. S. Kresge Company (Detroit, Michigan) 1962 as Kmart Headquarters: Hoffman Estates, Illinois

Products: Clothing, Bedding, Furniture, Jewelry, Health and Beauty Products, House wares, Tools and Hardware, Sporting Goods, Electronics, Toys and Games, and Baby Products.
Website: www.kmart.com

ABOUT

Kmart is a chain of discount department stores in the United States. The chain acquired Sears in 2005, forming a new corporation under the name Sears Holdings Corporation. Kmart also exists in Australia and New Zealand, although it now has no relation to the American stores except in name, after U.S. equity in the Australian business was purchased in the late 1970s. Kmart is the third largest discount store chain in the world, behind Wal-Mart and Target; all three chains were founded in 1962.

As of January 30-2010, Kmart operated a total of 1,327 (13 closing by late May) Kmart stores across 49 states. This store count included 1,361 discount stores, averaging 92,000 sq ft and 29 Super Centers, averaging 165,000 sq ft. Kmart's world headquarters was located in Troy, Michigan, in a sprawling complex which, since Kmart's relocation to Illinois, has been slated for demolition. Kmart became known for its "Blue Light Specials". They occurred at surprise moments when a store worker would light up a mobile police light and offer a discount in a specific department of the store.

HISTORY

Sebastian S. Kresge first met Frank Woolworth when working as a travelling salesman and selling to all nineteen of Woolworth's stores at the time. In 1897 Kresge invested in two five and dime stores with his friend John McCrory; by 1907 Kresge had bought out McCrory. Kresge opened the first Kmart store on March 1, 1962, in Garden City, Michigan and named Kmart. A total of eighteen Kmart stores opened that year. During the 1970s, Kmart put a number of competing retailers out of business.

In 1977, S. S. Kresge Corporation changed its name to Kmart Corporation. In 1987, the Kmart Corporation sold its remaining Kresge and Jupiter stores in the United States to McCrory Stores, although Canadian Kresge stores continued to operate until 1994.

KMART SUPER CENTER

Kmart Super Center opened a 147,000 sq ft location in 1991 in Medina, Ohio featuring a full-service grocery store and general merchandise. The second ground-up Kmart Super Center opened in Montrose, Ohio, featuring chain's first full-scale video rental center and a carryout Chinese menu. Most Kmart Super Centers range in size from 140,000 sq ft to 190,000 sq ft .Current locations feature are in-house bakeries, fresh meats and seafood, and a full delicatessen.

Big Kmart (Big K) opened in Chicago, Illinois, on April 23, 1997. The format focuses on home fashions, children's apparel and consumables (Pantry). Most Kmart stores were remodeled to this format during the late 1990s.

BLUE LIGHT SPECIAL

The original Blue Light Special disappeared in 1991, due to changing consumer habits and misuse by individual stores (according to the company's official explanation). The company brought back the Blue Light Special in 2001, but within a few weeks the program was scrapped.

In September 2009 Blue Light Specials were reinstated on Saturday, and later on Sundays also.

KMART AFTER THE SEARS MERGER

Kmart started remodeling stores to the "Orange" prototype in 2006. The typical white and blue interior of the stores was changed to orange and brown, and shelf heights were lowered to create better sightlines. The remodeled stores contain an appliance department with Kenmore Appliances and most have hardware departments that sell Craftsman tools, which prior to the merger had been exclusive to Sears stores. 280 stores as of 2009 have been remodeled to this new prototype.

CURRENT STORE CONCEPTS

Kmart is a chain of discount department stores that are usually freestanding or located in strip malls. They carry electronics, music, movies, bedding, hardware, sporting goods, clothing, toys, jewelry, office supplies, health and beauty products, home decor, and a limited selection of food items.

Many stores also have a garden center, a pharmacy, and usually have a K-Cafe or a Deli where it serves Nathan's Hot Dogs and pizza.
Kmart stores range from 80,000110,000 sq ft. Many of these stores were converted into Super Kmart, and most of them were converted into Big Kmart.

K-Caf is an in-store restaurant that Kmart has inside stores that has soft pretzels, hot dogs, sandwiches, drinks, and coffee. In addition to the cafe's menu, hot food items can also be purchased at the deli and eaten in the Deli Cafe at Super Kmart Center stores.

COMPETITIVE ADVANTAGE

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