Kmart and sears still stuck in the middle

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Kmart and sears still stuck in the middle

The move had been forced by changes in the technological and competitive environment that had resulted in substantial changes in the retail industry.

Kmart and sears still stuck in the middle

Old-school, mall-based department stores were falling out of favor and both Kmart and Sears were losing market share. After the merger, the combined entity was the eighth-largest retailer in the United States.

However, since the first full fiscal year together inrevenues and profits at Kmart Sears have declined. This paper will analyze the company to determine the major problems it faces, then identify potential solutions to those problems.

The retailing industry is generally unfavorable. The power of buyers is high. They are not price-takers, and must often be enticed with discounts. The products are not well-differentiated, there are many substitutes and buyers have ample information.

The power of suppliers is moderate. Suppliers need the volume Sears Kmart offers, but they can often go to other competitors as there are low switching costs.

Suppliers are not concentrated, so they lose power because of that. Barriers to entry are high.

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The industry is at or over capacity. Large retailers rely heavily on economies of scale. There are high capital requirements in the industry and the learning curve with respect to merchandising and distribution is steep. There is high threat of substitutes. Buyers are inclined to substitute one retailer for another as there are no switching costs and only lukewarm brand loyalty.

Threats to Sears Kmart business include online retailers and retailers from other sectors or more specialized niches that market the same products.

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There is always a price-performance tradeoff for retail customers, which means Sears Kmart must offer a stronger value proposition than their competitors. The degree of rivalry is high. There are significant exit barriers, as many industry firms own substantial amounts of real estate and inventory.

The industry is presently characterized by overcapacity. There is high diversity of rivals, but in any given niche or segment there are dozens of competitors.

Sears Kmart has a few strengths that they can leverage. One is that they own two of the most iconic brand names in retailing. There is instant brand recognition among consumers.Kmart And Sears Still Stuck In The Middle  Kmart and Sears: Still Stuck In The Middle On January 22, , Kmart Corporation became the largest retailer in U.S.

history to seek bankruptcy protection. Both are suffering from years of declining sales, an aging shopper base, and a dwindling middle class.

Contact Sears Customer Service: Email, Phone Number & Fax

In August, Sears posted a wider than expected quarterly loss, and revenues have been in decline since , when it merged with Kmart and became Sears' Holdings, under hedge fund guru Eddie Lambert's purview.

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Sears Headquarters Info

Located in Overland Park, one of the largest suburbs of Kansas City, Metcalf South Shopping Center opened in to immediate fanfare. Launched by infamous mall developer Sherman Dreiseszun, Metcalf South is anchored by local Kansas City department store The Jones Store Company and Sears.

It is enclosed and nearly , square feet on three levels, including [ ]. Kmart and Sears: Still stuck in the middle? Just two years after filing bankruptcy, Kmart Corporation stunned the retail industry with the acquisition of Sears in November of The acquisition of Sears for Kmart was a part of a growth strategy to help build and strengthen the once dominant giant discount retailer.

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Thesis: Kmart Sears Case Analysis … | 5 Pages, MLA Style