Kmart and Sears Merger
Introduction in development and strategic management – MBA ENG
Group Members: Tamuna Gelashvili Lina Poghosova
Tinatin Murghulia
Mariam Kiladze Ia Pirtskhelava Tamar Bichiashvili Anna Martiashvili
Nino Makatsaria
Natia Pachikashvili Mikheil Abashidze
Case #3:
Kmart and Sears: still stuck in the middle?
Kmart Company History
Kmart had been established in 1962 by its parent company S.S. Kresge as a discount department store offering the most variety of goods at the lowest prices. Un- like Sears, the company chose not to locate in large shopping malls but to establish its discount stores in highly visible corner locations. During the 1960s, ’70s, and ’80s, Kmart prospered.
Retail formats in operation
Kmart – is a chain of discount stores that are usually free standing or located in a strip malls. Big Kmart – signals a different kind of Kmart. These stores are bigger, brighter and offer big savings, big value, big selection and big convenience. Big Kmart stores are designed to increase store sales by increasing the frequency of customer visits. The format focuses on three distinct businesses – home fashions, children’s apparel and consumables – and features an expanded food area known as the “Pantry”. Kmart Super Center - is a chain of hypermarkets that carry everything a regular Kmart carries, but also have a full grocery section with meat and poultry, baked goods, a delicatessen, garden produce, and fresh seafood. Most Kmart Super Centers operate 24-hours a day and offer special services. In 1999 Kmart began offering a dial-up internet service called BlueLight, which was eventually spun off as an independent company. BlueLight was initially free and supported by banner ads. BlueLight dropped the free service in February 2001 and was reacquired by Kmart in July 2001. In 2002 United Online, which also owns NetZero and Juno, bought the BlueLight service after Kmart filed for bankruptcy. In August 2006, Bluelight dropped the banners. As
Group Members: Tamuna Gelashvili Lina Poghosova
Tinatin Murghulia
Mariam Kiladze Ia Pirtskhelava Tamar Bichiashvili Anna Martiashvili
Nino Makatsaria
Natia Pachikashvili Mikheil Abashidze
Case #3:
Kmart and Sears: still stuck in the middle?
Kmart Company History
Kmart had been established in 1962 by its parent company S.S. Kresge as a discount department store offering the most variety of goods at the lowest prices. Un- like Sears, the company chose not to locate in large shopping malls but to establish its discount stores in highly visible corner locations. During the 1960s, ’70s, and ’80s, Kmart prospered.
Retail formats in operation
Kmart – is a chain of discount stores that are usually free standing or located in a strip malls. Big Kmart – signals a different kind of Kmart. These stores are bigger, brighter and offer big savings, big value, big selection and big convenience. Big Kmart stores are designed to increase store sales by increasing the frequency of customer visits. The format focuses on three distinct businesses – home fashions, children’s apparel and consumables – and features an expanded food area known as the “Pantry”. Kmart Super Center - is a chain of hypermarkets that carry everything a regular Kmart carries, but also have a full grocery section with meat and poultry, baked goods, a delicatessen, garden produce, and fresh seafood. Most Kmart Super Centers operate 24-hours a day and offer special services. In 1999 Kmart began offering a dial-up internet service called BlueLight, which was eventually spun off as an independent company. BlueLight was initially free and supported by banner ads. BlueLight dropped the free service in February 2001 and was reacquired by Kmart in July 2001. In 2002 United Online, which also owns NetZero and Juno, bought the BlueLight service after Kmart filed for bankruptcy. In August 2006, Bluelight dropped the banners. As