Information AboutKmart |
| CATEGORIES ABOUT KMART | |
| companies established in 1899 | |
| companies based in michigan | |
| sears holdings corporation | |
| discount stores of the united states | |
| companies based in troy, michigan | |
| kmart | |
Kmart is a chain of Discount Department Stores , founded by Sebastian S. Kresge. Kmart merged with Sears, Roebuck And Company in early 2005, creating the Sears Holdings Corporation . The company competes on an average price level on par with Wal-Mart and Target . HISTORY Sebastian S. Kresge founded the "S.S. Kresge Corporation," the predecessor of Kmart, in 1899 in Detroit, Michigan . Kresge's first retail establishment, a Five-and-ten-cent Store , resembled those operated by Frank Woolworth . The store grew into a Chain known as S. S. Kresge. By 1912, the chain operated 85 stores. By the 1920s, Kresge operated larger stores that offered a wider variety of merchandise and prices, precursors of the modern discount store. The first Kmart Discount Store opened in 1962 in Garden City, Michigan . A total of 18 Kmart stores opened that year. Kmart Foods, a long forgotten, now defunct chain of Kmart Supermarkets opened in that same decade. Kmart became known for its "Blue Light Specials." They occurred at surprise moments when a store worker would light up a mobile police light and offer a discount in a specific department of the store. The phrase "attention Kmart shoppers" also entered into the American pop psyche. Kmart was also featured in the Oscar -winning 1988 film '' Rain Man '', in which Tom Cruise and Dustin Hoffman both exclaim, "Kmart sucks!" During the 1970s, Kmart put a number of competing retailers out of Business . In 1977, S. S. Kresge Corporation changed its name to "Kmart Corporation." In 1987, the Kmart Corporation sold its remaining Kresge stores. Kmart opened their first "Kmart Super Center" in 1991 in Medina, Ohio . They also opened their first "Big K" but retained the mart inside the trademark K in 1996 . While many Kmart stores were converted to Kmart Super Centers, most were converted to Big Ks. Trouble for Kmart During the 1970s, the company's fortunes began to change; many of Kmart's stores were outdated and in decaying condition. Inventory piled up, checkout lines grew, and customers abandoned the stores. Further, in the late 80s and into the 90s the corporate office shifted much of its focus from the Kmart stores into other companies it had acquired, such as The Sports Authority , Builder's Square and Waldenbooks , which were later all sold off. In 1990 , in an effort to change their image, Kmart introduced a new logo (dropping the old-style italic "K" with a turquoise "mart," created in the early 1970s), and gave many stores a very badly needed renovation. However, most stores were not remodeled until the mid-1990s, some of which are not completely renovated today. This then-new logo was replaced in 2004 with the current logo. In the early nineties Kmart tried to reinvent themselves by using the short lived "Today's Kmart" name. The company also began to offer exclusive merchandise by Martha Stewart , Kathy Ireland and Jaclyn Smith . Other recognizable brands included Sesame Street and Disney . Rosie O'Donnell and Penny Marshall were among the company's most-recognized spokespersons. In the 1990s , Kmart made a number of missteps, again. In 1993 Kmart closed 110 stores. Unlike its competitor Wal-Mart , it failed to invest in computer technology to manage its Supply Chain . Furthermore, Kmart maintained a high dividend, which reduced the amount of money available for improving its stores. Many business analysts also faulted the corporation for failing to create a coherent Brand image. The original Blue Light Special had disappeared in 1991 , due to changing consumer habits and misuse by individual stores (according to the company's official explanation). The company later brought back the Blue Light Special in the early 2000's, which was planned to have the manager announcing a promotion in-store every hour, on the hour, with said special lasting for 25 minutes. When the announcement of the special took place over the public address system, music would fill the store and all employees would stop their current actions, clap twice and pump their fists in the air, shouting "Blue Light, Blue Light!" This scheme aimed to generate more interest in Kmart from shoppers and the media, but failed because stores did not follow the procedure. No records exist of anyone actually shouting "Blue Light, Blue Light!" It has since ended the Blue Light Special again. In 2001 , the stock scandal involving Martha Stewart severely hurt the corporation's image. In addition, Kmart attempted to compete against Wal-Mart on price by introducing the "Blue Light Always" campaign, which ditched the original blue light concept for lower prices in general. In August 2001, Target Corporation sued Kmart for false advertising; Target claimed that its "Dare to Compare" campaign routinely misstated both Kmart's and Target's prices. Two days after the terror attacks of 9/11/2001, Kmart stopped all sales of guns and ammunition, citing their concern for the safety of their friends and customers. This move angered millions of gun owners and resulted in a boycott. Bankruptcy On January 22 , 2002 , Kmart filed for Bankruptcy protection; led into the bankruptcy by its then chairman Chuck Conaway and president Mark Schwartz. Similar to the Enron scandal, Conway and Schwartz were accused of misleading shareholders and other company officials of the company's financial crisis, while they were allegedly making millions and allegedly spending the company's money on planes, houses, boats and other luxuries. After dismissing Conaway and Schwartz, it shut down more than 300 stores in the United States and laid off around 34,000 workers as part of a restructuring. On May 6 , 2003 , Kmart officially emerged from bankruptcy protection as the "Kmart Holding Corporation" and on June 10 , 2003 it began trading on the NASDAQ as "KMRT". Kmart introduced five then new Prototype stores with a new logo, layout and color scheme (lime Green and Gray ) in 2002 with one in White Lake, Michigan and four in Peoria, Illinois . The new layout has wider aisles, better selection, and better lighting. However, Kmart could not afford a full-scale rollout. The lime green prototype was abandoned for the new Kmart "orange" concept that rolled out at 9 test stores nationwide. Kmart was once a major presence in Canada . However, after being sold to Zellers ' parent Hudson's Bay Company in the late 1990s, all Kmart stores there were either closed or converted to the Zellers brand. 1479 stores operate today under the Kmart banner. Merger See Also: Sears Holdings Corporation On November 17 , 2004 , Kmart announced its intentions to purchase Sears. As a part of the merger, the Kmart Corporation would change its name to Sears Holdings Corporation. The new corporation announced that it would continue to operate stores under both the Sears and Kmart brands. STORE CONCEPTS Current .]]
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