Sears/Kmart Merger Case Study
The United States economy had a slight rebound from the lingering recession of the dot.com bubble burst of 1999. In 2004 gross domestic product climbed 4.4%, outpacing the previous three years growth (Wood 2004).
The trend of big box store openings was in the waning period of their ascendancy of dominating how the consumers make purchases. They were no longer new and exciting, however they had provided consumers with a one-stop shopping experience that cut down on time and price. Big-box retailers such as Home Depot, Best buy, and Wal-Mart, were welcomed in virtually every urban area throughout the United States, and found success in rural areas as well. This did not bode well for either Kmart or Sears. These outdated retailers could not compete on the basis of price, selection, or convenience of the new entrants.
Sears and Kmart both do have strong
Bibliography: http://www.fastcompany.com/magazine/77/walmart.html ‘Wal-Mart Facts and News,” Retrieved November 20, 2008 from http://walmartstores.com/FactsNews/FeaturedTopics/?id=13 http://www.chicagobusiness.com/cgi-bin/news.pl?id=19617 Barr, Aaron (2007, May 7), “Sears: Where It Begins,” Adweek.com: Retrieved November 20, 2008 from http://www.adweek.com/aw/national/article_display.jsp?vnu_content_id=1003581783 Jacobs, Karen and Aarthi Sivaraman (2008, November 24), “Sears’ Offers $6.75 a Share for Restoration,” 5 NEWSonline.com: Retrieved November 24, 2008 from http://www.kfsm.com/Global/story.asp?S=7410632