Introduction
Kmart, a name synonymous with inexpensive clothing, home products, and toys, underwent a dramatic change in March 2005 when it merged with retail giant Sears. While Kmart has encountered its share of ups and downs within the retail market, it has remained a viable retailer rivaling Wal-Mart for a share of consumer loyalty. The merger with Sears produced the third largest broad-line retailer with approximately 3,900 full-line and specialty retail stores in the United States and Canada (Sears Holding Corporation, 2010).
Combining Kmart’s determination with Sears’ quality and reputation has given way to a merchandising conglomerate that offers customers quality products with various exclusive name brands. Brands such as Jaclyn Smith and Joe Boxer are just a couple of the well-known labels offered by Kmart to consumers in 49 states, Guam, Puerto Rico, and the U.S. Virgin Islands. The cheap, inferior items previously offered to consumers have been replaced with quality, name-brand items at a competitive price.
History
In 1899, Sebastian S. Kresge founded the S.S. Kresge Company. By 1912, S.S. Kresge Company was comprised of 85 stores with sales of over $10,325,000 annually. Even during the depression, Kresge’s offered families products they could afford. More importantly, Kresge’s provided jobs at a time when most other corporations could not. Sales topped the $1 billion mark in 1966, 67 years since the inception of Kresge’s. Today, Kmart has annual revenues of over $55 billion. (Sears Holdings, 2010).
The first Kmart store was opened in Garden City, Michigan in March 1962. Seventeen other Kmart stores opened that year as well, garnering the corporation $483 million in sales.
Kmart is famous for its Blue Light Specials. During this time, a store worker would light up the blue light bulb in a specific department. For the next few minutes, the price of items in that department would be drastically reduced. “Attention Kmart shoppers” is...