Kmart winding down
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Defoedude's Description
of the chaos in K-mart stores reminds me of what I have seen going on in Target the past few years. Too many retailers are trying to do the most with the least number of folks. It's called a race to the bottom.
of the chaos in K-mart stores reminds me of what I have seen going on in Target the past few years. Too many retailers are trying to do the most with the least number of folks. It's called a race to the bottom.
Closing more here in TN
From a news station in Nashville
From a news station in Nashville
One is closing here, probably has high shrink as a Wal-Mart that was nearby also had incredibly high shrink.
Store is well stocked but kind of like a sleazy low rent Sears. Except there is a nice Sears in a giant well traveled mall that is literally directly across the street. Unless you need grocery or pharmacy they sell the exact same stuff.
Employees there are pretty incompetent. They had the garden center closed and locked when I wanted to see if they had any outdoor patio lighting left.
Store is well stocked but kind of like a sleazy low rent Sears. Except there is a nice Sears in a giant well traveled mall that is literally directly across the street. Unless you need grocery or pharmacy they sell the exact same stuff.
Employees there are pretty incompetent. They had the garden center closed and locked when I wanted to see if they had any outdoor patio lighting left.
cornutt
Well-known member
Interesting bit... A mall where I live, built in 1985, has deteriorated substantially and is about to close. It has been sold (at pennies on the dollar) to an investment group that wants to tear it down and put in a condo development. However, one of the few remaining tenants is Sears... and as it turns out, they actually own the part of the mall that they are in. And they want to stay. The investment group is trying to figure out what to do.
I think that's a tactic they use to force a buyout. They will probably end up selling it for far more than that store is worth in its current state. It's a good tactic to drum up cash. There was another in a similar position I saw on the news recently, basically they forced a buyout.
They're fairly strategic when it comes to liquidating these stores.
Unlike a lot of these going out of business sales they also ship basically all good merchandise out of the store to another location, then sell off displays and ship in scratch and dent Sears outlet junk or seasonal overstock that didn't sell from other locations. This obviously is some agreed upon arrangement for the liquidation company. Or they're just paying the liquidation company to run the sale as opposed to selling them the merchandise.
At the Kmart here they literally packed up all but the display electronics and appliances and sent them to the Sears across the street.
They're fairly strategic when it comes to liquidating these stores.
Unlike a lot of these going out of business sales they also ship basically all good merchandise out of the store to another location, then sell off displays and ship in scratch and dent Sears outlet junk or seasonal overstock that didn't sell from other locations. This obviously is some agreed upon arrangement for the liquidation company. Or they're just paying the liquidation company to run the sale as opposed to selling them the merchandise.
At the Kmart here they literally packed up all but the display electronics and appliances and sent them to the Sears across the street.
dustin92
Well-known member
One of the two we have in town is set to close in December, was just announced this week and clearances started yesterday. Happened to drive by yesterday and saw the place busier than I've ever seen it in 5 years! The place was always dead... and the last time I was in, it looked like they'd already closed.. in the winter it was cold, couldn't have been over 60 degrees and half the lights were off. Employees were wearing coats in the store. I've been told their air conditioning system has been broken for 3 years. I give the other store a year at best, it's equally deserted and run down.
Saw sign twirlers advertising Fontana, CA location going out of business sale on the way to Sunday dinner after church today.
gusherb
Well-known member
One of the last remaining stores by me is closing down. The Kmarts around here do pretty well, including the one closing.
vacerator
Well-known member
I'm sure
some will say, what do you expect? Kressge-K Mart started in Detroit. Proof that organized labor was not the only cause for company closures and outsourcings. K Mart was never unionized.
However, many who patronized K Mart and Sears had very well paying union benefit jobs which contributed to their success before the middle class began to suffer.
Seems in some retrospect, we reap what we sew.
General Motors unemployed at least 30 percent of it's buyers by over outsourcing last decade. Trickle down job losses from suppliers also.
Ironic though, high level managers were able to retire, and didn't end up unemployed.
It all rolls down hill.
some will say, what do you expect? Kressge-K Mart started in Detroit. Proof that organized labor was not the only cause for company closures and outsourcings. K Mart was never unionized.
However, many who patronized K Mart and Sears had very well paying union benefit jobs which contributed to their success before the middle class began to suffer.
Seems in some retrospect, we reap what we sew.
General Motors unemployed at least 30 percent of it's buyers by over outsourcing last decade. Trickle down job losses from suppliers also.
Ironic though, high level managers were able to retire, and didn't end up unemployed.
It all rolls down hill.
iheartmaytag
Well-known member
managers were able to retire, and didn't end up unemploy
I know you said High level, so I am assuming you mean at the corporate level.
However, at the store level, this is not true. My brother had been a K-Mart manager since 1977. He was left high & dry in the middle of the desert (Hays Kansas). When K-Mart filed for bankruptcy in 2005 the value of all their stock shares that they were given as deferred compensation went to zero. When Sear's merged they became a new cooperation and none of the past remained.
Sear's used to be the big appliance retailer. They had the newest designs with the most features. Then they broke up their long standing relationship with Whirlpool, and began to play taps over the intercom.
K-Mart and Sear's used to be #1 and #2 retailers. They just switched back and forth. Both of the former competitors failed to evolve, and it appears will soon become extinct.
I know you said High level, so I am assuming you mean at the corporate level.
However, at the store level, this is not true. My brother had been a K-Mart manager since 1977. He was left high & dry in the middle of the desert (Hays Kansas). When K-Mart filed for bankruptcy in 2005 the value of all their stock shares that they were given as deferred compensation went to zero. When Sear's merged they became a new cooperation and none of the past remained.
Sear's used to be the big appliance retailer. They had the newest designs with the most features. Then they broke up their long standing relationship with Whirlpool, and began to play taps over the intercom.
K-Mart and Sear's used to be #1 and #2 retailers. They just switched back and forth. Both of the former competitors failed to evolve, and it appears will soon become extinct.
It all started coming off the rails in 1972
That was the year Harry Cunningham retired. Bob Dewar (beancounter) ran things until 1979.
Then Bernie Faber (sp) ran things until 1986-87. Joltin Joe Antonni took over and had all sorts of fantastic ideas(!) It is my opinion that Joe was the nail in Kmarts coffin.
Bobby Dewar came to the brilliant conclusion that Kmart could not longer put in 80-90,000 SQ foot stores and decided that a smaller footprint would work in smaller towns. Thus we started seeing about 1,000 smaller "group 9" stores popping up. This lead to confusion for layouts, planograms, and merchandise as the smaller 35-55,000 stores could not hold the same amount of product as the larger ones.
Bernie ran things in the 80's and was content to maintain staus quo. By now the stores were getting really long in tooth and Kmart made a half hearted attempt at automating HQ systems with RDC and ultimately POS systems at stores. In 1987 seeing how far they were behind walmart and Target, Kmart pushed the IT budget into overdrive and bought 25 per cent of IBM's output in POS systems that year.
Obviously, the expenditure put a stain on profits and the dividend for shareholders and Kmart mgmt was loathe to cut the dividend to free up cash to invest in the already outdated stores.
Joltin Joe announced a 2.5 billion store improvement plan, then upped it to 3.5 billion (all on borrowed money)then decided that Kmart needed to diversify. Along comes the purchase of Builders Square, Sports Authority, and Waldenbooks all of which drained financial resources and management attention.
Meanwhile, hundreds of miles Southwest of Troy, Mr. Sam was almost singularly focused on Walmart and little else. As a result Walmrt honed and refined itself to be a major player in the world of discount retailing whereas Kmart seemed to be interested in anything but.
That my friends was the beginning of the end. In 1994 Joltin Joe was pushed out by the board after he dragged his feet on selling off Kmart's purchases, ostensibly to free up cash to invest in the stores.
Floyd Hall came aboard and righted the ship........sort of. While Kmart avoided a Ch 11 filing in 1995, incredulously Joltin Joe, when interviewed by a Detroit TV station stated, "Kmart is fine" Floyd thought that kmart needed a "pantry' that is a small grocery section to attract shoppers who, in theory, would stick around and buy higher margin merchandise. It never panned out.
Meanwhile the stores were not getting the care and love they needed. Floyd bowed out and Kmart foolishly hired Chuck Conaway, the frat boy who proceed to dig the gravesite that Kmart currently resides in. By now, Kmart simply could not match Walmart on pricing yet Chuck went full speed ahead and did just that. While it revived sales somewhat, it was murder on profits. Chucky and his ilk still managed big bonuses during this time and after some corporate handky panky where he was found to have cooked the books, Chuck was forced out.
And how we have a hedge fund manager, Eddie, who simply does not know his ass from his elbow, running what is left of Kmart/Sears into the ground.
That was the year Harry Cunningham retired. Bob Dewar (beancounter) ran things until 1979.
Then Bernie Faber (sp) ran things until 1986-87. Joltin Joe Antonni took over and had all sorts of fantastic ideas(!) It is my opinion that Joe was the nail in Kmarts coffin.
Bobby Dewar came to the brilliant conclusion that Kmart could not longer put in 80-90,000 SQ foot stores and decided that a smaller footprint would work in smaller towns. Thus we started seeing about 1,000 smaller "group 9" stores popping up. This lead to confusion for layouts, planograms, and merchandise as the smaller 35-55,000 stores could not hold the same amount of product as the larger ones.
Bernie ran things in the 80's and was content to maintain staus quo. By now the stores were getting really long in tooth and Kmart made a half hearted attempt at automating HQ systems with RDC and ultimately POS systems at stores. In 1987 seeing how far they were behind walmart and Target, Kmart pushed the IT budget into overdrive and bought 25 per cent of IBM's output in POS systems that year.
Obviously, the expenditure put a stain on profits and the dividend for shareholders and Kmart mgmt was loathe to cut the dividend to free up cash to invest in the already outdated stores.
Joltin Joe announced a 2.5 billion store improvement plan, then upped it to 3.5 billion (all on borrowed money)then decided that Kmart needed to diversify. Along comes the purchase of Builders Square, Sports Authority, and Waldenbooks all of which drained financial resources and management attention.
Meanwhile, hundreds of miles Southwest of Troy, Mr. Sam was almost singularly focused on Walmart and little else. As a result Walmrt honed and refined itself to be a major player in the world of discount retailing whereas Kmart seemed to be interested in anything but.
That my friends was the beginning of the end. In 1994 Joltin Joe was pushed out by the board after he dragged his feet on selling off Kmart's purchases, ostensibly to free up cash to invest in the stores.
Floyd Hall came aboard and righted the ship........sort of. While Kmart avoided a Ch 11 filing in 1995, incredulously Joltin Joe, when interviewed by a Detroit TV station stated, "Kmart is fine" Floyd thought that kmart needed a "pantry' that is a small grocery section to attract shoppers who, in theory, would stick around and buy higher margin merchandise. It never panned out.
Meanwhile the stores were not getting the care and love they needed. Floyd bowed out and Kmart foolishly hired Chuck Conaway, the frat boy who proceed to dig the gravesite that Kmart currently resides in. By now, Kmart simply could not match Walmart on pricing yet Chuck went full speed ahead and did just that. While it revived sales somewhat, it was murder on profits. Chucky and his ilk still managed big bonuses during this time and after some corporate handky panky where he was found to have cooked the books, Chuck was forced out.
And how we have a hedge fund manager, Eddie, who simply does not know his ass from his elbow, running what is left of Kmart/Sears into the ground.
vacerator
Well-known member
Yes,
I meant high level as in at the corporate level.
I also doubt anyone has used their own money to keep K Mart afloat, because that would use up a lot of their own retirement capital.
Some say it all had to go this way. Seriously? That sounds like a cop out.
You get out what you put in. Put in garbage, that's what you get back.
When you run a business, you don't tell an unhappy customer too bad, thats the way I do it. They tell ten people, who tell ten more, and so on. Soon they are all with the competition.
You don't have to give the store away to please people either, nor should you.
Honor the uniform commercial codes. There will be those who try to take advantage of price matching, refund, or return policies.
The best you can do is meet them half way. If they still walk away unpleased, you did your best.
I'd like to see any of these high level financial types who have never managed stores at the hands on level do it for a month. I bet most of them couldn't.
They ask for projections and payroll needs, then expect you to perform on a shoe string at there lower today than in the past labor costs. The employees get little or no benefits. Why should they care? They are in school and will move on. They have no stake in success of the stores.
I meant high level as in at the corporate level.
I also doubt anyone has used their own money to keep K Mart afloat, because that would use up a lot of their own retirement capital.
Some say it all had to go this way. Seriously? That sounds like a cop out.
You get out what you put in. Put in garbage, that's what you get back.
When you run a business, you don't tell an unhappy customer too bad, thats the way I do it. They tell ten people, who tell ten more, and so on. Soon they are all with the competition.
You don't have to give the store away to please people either, nor should you.
Honor the uniform commercial codes. There will be those who try to take advantage of price matching, refund, or return policies.
The best you can do is meet them half way. If they still walk away unpleased, you did your best.
I'd like to see any of these high level financial types who have never managed stores at the hands on level do it for a month. I bet most of them couldn't.
They ask for projections and payroll needs, then expect you to perform on a shoe string at there lower today than in the past labor costs. The employees get little or no benefits. Why should they care? They are in school and will move on. They have no stake in success of the stores.
Mr Sam
I feel that Walmart has done nothing but use Kmart as a model for his business since the beginning. Lets look at the business that Kmart has owned or started and some of which Walton has bought to either make his own or continue a business that he started, like Sam's club.
I feel that Walmart has done nothing but use Kmart as a model for his business since the beginning. Lets look at the business that Kmart has owned or started and some of which Walton has bought to either make his own or continue a business that he started, like Sam's club.
vacerator
Well-known member
Yes Eric,
I agree.
Oh, I found the Hines Kerry house on Google aerial view map. It has huge solar panels.
I agree.
Oh, I found the Hines Kerry house on Google aerial view map. It has huge solar panels.
really
it is heavily guarded and far from the road. Very Interesting. The kmart is close by to there estate too ironically.
it is heavily guarded and far from the road. Very Interesting. The kmart is close by to there estate too ironically.
Was at K-Mart #1 tonight
I had to pick up a few things after work this evening and decided to go to my local K-Mart. This is the same K-Mart that I shopped at as a child and it is the closest one to my home - about three miles west in Garden City, Michigan.
It also has a great legacy here in the Detroit area as it was the first K-Mart store that was ever opened - opening its doors on March 1, 1962. This was a big deal for many of us who were regular S.S. Kresge shoppers.
So tonight I spent a little time shopping in that same K-Mart store - honestly, it still smells the same every time I walk in there, which isn't often anymore. They were having a sidewalk sale! Getting rid of summer clothes and some other past seasonal items. While the store was fairly well stocked, there is never more than two cashiers open and the lines are slow, slow, slow. I'm sure the store will close one of these days, and with it a real important piece of American retail history.
Photos of the store this evening and on opening day in 1962.
I had to pick up a few things after work this evening and decided to go to my local K-Mart. This is the same K-Mart that I shopped at as a child and it is the closest one to my home - about three miles west in Garden City, Michigan.
It also has a great legacy here in the Detroit area as it was the first K-Mart store that was ever opened - opening its doors on March 1, 1962. This was a big deal for many of us who were regular S.S. Kresge shoppers.
So tonight I spent a little time shopping in that same K-Mart store - honestly, it still smells the same every time I walk in there, which isn't often anymore. They were having a sidewalk sale! Getting rid of summer clothes and some other past seasonal items. While the store was fairly well stocked, there is never more than two cashiers open and the lines are slow, slow, slow. I'm sure the store will close one of these days, and with it a real important piece of American retail history.
Photos of the store this evening and on opening day in 1962.
This makes me very sad. Very sad.
warmsecondrinse
Well-known member
Never more than two cashiers? See ya!
Am I the only person who sees red when only half the registers are manned and lnes are out the door?
Jim
Am I the only person who sees red when only half the registers are manned and lnes are out the door?
Jim
vacerator
Well-known member
Seems
they were having a sidewalk sale at the Garden City K-Mart last night. No guarding it either. Not in the budget, then again, the Secretary of State wasn't there. LoL
I notice most stores have but a few check outs open at the slower end of the month before people get paid. This even includes Walmart on the few occasions I ever visited one, which was usually to do a shopper traffic observation, and price comparisons.
Ironically, when I shop at a Nino Salvaggio gourmet market here, it is thriving and busy, almost next door to a big newer Walmart. Good to see!
they were having a sidewalk sale at the Garden City K-Mart last night. No guarding it either. Not in the budget, then again, the Secretary of State wasn't there. LoL
I notice most stores have but a few check outs open at the slower end of the month before people get paid. This even includes Walmart on the few occasions I ever visited one, which was usually to do a shopper traffic observation, and price comparisons.
Ironically, when I shop at a Nino Salvaggio gourmet market here, it is thriving and busy, almost next door to a big newer Walmart. Good to see!
