Kmart

The Kmart Corporation is an entity belonging to Sears Holdings Corporation, U.S. retail chain.

Kmart was represented a few years ago in Canada, the shops were closed but in the late 1990s and sold to the retail chain Zellers. Like the Target stores include kmart shops known in Australia for companies Coles Myer; Coles Myer also owns the rights to the Kmart brand in New Zealand.

History

Sebastian S. Kresge founded in 1899 in Detroit, Michigan, the SS Kresge Corporation, a predecessor of Kmart. Kresge's first department store, a discount store, was managed by Frank Woolworth. The shop grew into a department store chain S. Kresge, in 1912, operated the chain 85 stores.

In the 1920s, Kresge operate larger stores that offered a wider range of products, prices and merchandising. These serve as a model for the current discount format. The first Kmart store opened in Garden City, Michigan in 1962, 17 other stores followed in the same year. A shopping House of Kresge was provided in Sonneberg, Thuringia.

1977 joined the SS Kresge Corporation changed its name to Kmart Corporation sold its former Kresge stores.

Two brand names

Blue Light Special

Kmart became known for its Blue Light Special: The element of surprise was a store employee a mobile police light in a certain part of the market enlighten. This was considered a sign that there are cheap deals and prices. During the 1970s, succeeded Kmart, so that the attention of consumers to draw on itself and thus displace some competing firms from the market. This ritual disappeared in 1991 to change the buying habits of consumers. Another reason was, according to company information that other companies had the Blue Light Special abused.

BlueLight Always

In place of the Blue Light Specials Blue Light Always joined. The store manager gave every hour a cheap price zone in the store known. This action lasted 25 minutes each.

As soon as this announcement was proclaimed, presented all the employees their work briefly, clapped his hands twice, stretched once their clenched fists to victory pose in the air and shouted ( "blue light, blue light !") "Blue Light, Blue Light " - so least in theory. This method should cause a stir and attract more customers. But it failed because some branches of this procedure is not followed. There is no evidence that any employee ever "blue light, blue light ," cried.

Crisis in the 1990s

In the 1990s, Kmart precipitated a series of poor decisions

  • We did not conduct computerized exchange systems, such as the main competitor Wal- Mart
  • Kmart poured out high dividends, which came at the expense of investment and modernization of branches
  • Some economic analysts are of the view that the company had no distinctive brand names, such as the competitors Target or Wal -Mart
  • One hand, Kmart attempted priced to compete with Wal- Mart, on the other hand you simultaneously led a high-quality product lines from Martha Stewart, Kathy Ireland and Jaclyn Smith.

2001 tried the distinctive and historic " Blue Light Special" reintroduce, which was known as a feature for the company at 80 % of the population Kmart.

A stock scandal caused in 2001 by Martha Stewart hurt, the image of the company very much.

Kmart tried against Wal -Mart with deep discount prices, and by introducing opening times around the clock to fight. However, Wal- Mart held its own price cuts not only against it, but they still undercut, and finally emerging as the winner of the price war.

On January 22, 2002 Kmart filed for bankruptcy protection after finally Chapter 11 of the U.S. bankruptcy laws. Kmart had more than 300 stores in the United States close and dismissed more than 34,000 of its employees. The reason was mentioned that a restructuring is inevitable.

On 6 May 2003 Kmart requested the termination of the bankruptcy protection after the Kmart Holding Corporation was traded on 10 June 2003 on the NASDAQ stock market (as KMRT ). Kmart introduced a new standard market with a new logo, layout and color scheme ( lime green and gray) in White Lake, Michigan. The new market design was characterized by wider aisles and better lighting. However, this was less space for the goods, which is why the product range restricted, and the selection was reduced.

Merger with Sears

Kmart and Sears retail chain announced on November 17, 2004 merger intentions known. The company would then be the third largest retail group in the U.S. after Wal- Mart and Home Depot. The company would then be designated as Sears Holding, headquartered in Hoffman Estates, Illinois. The new company would both existing brands redistribute ( Sears, Kmart ).

Established in March 2005, Sears Holdings Corporation is governed by a Board, which is composed of seven members from Kmart and three members from Sears.

Kmart shareholders received a share in the new company ( share exchange). Sears shares were converted into a combination of 55 % shares ( at a ratio of an old and half new shares ) and 45% cash ( $ 50 per share ).

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