K-Mart will survive

[Zayre88]

Sears Holdings to close 12 stores

ATLANTA, Oct 21 (Reuters) - U.S. retailer Sears Holdings Corp (SHLD.O: Quote, Profile, Research, Stock Buzz) is planning to close 12 stores, including 8 Kmarts and 4 Sears outlets, in January.

The closures are "part of our normal course of business of opening and closing stores," spokeswoman Kimberly Freely said, adding, "It's not part of a greater issue."

The stores to be closed include Kmarts in Marietta, Georgia; Phoenix and Mesa, Arizona; Forest Park, Ohio; Northridge, California; Clarksville, Indiana; Sarasota, Florida and Knoxville, Tennessee.

The company will also shutter a Sears Grand in Columbia, South Carolina; a Sears Essentials in St. Petersburg, Florida; and two other Sears stores in Indianapolis and Florissant, Missouri.
http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSN2131253020081021

What do you think of this?  Normal procedure, first of more closings, a test to see what they can get for these stores? Are they just going out of business a few stores at a time... Discuss!!

[powersbt]

Compared to how many stores they have in the company, I wouldn't make too much out of 12 stores closing. The costs cut from the 12 stores would be nearly neglible at best, and wouldn't be a way to accurately see the result of further closures. If I had to guess, they were underperformers or issues with Rent costs, etc.

[dmx10101]

Yea no reason to panic over 12 stores closing, although its always sad when any close.

[KmartDanny09]

Kmart recently closed a Super K in Defiance, Ohio leaving the Super K store count to 54...

[KmartDanny09]

Originally posted by tbennett
I don't think this is surprising.  While I have never been to any of the stores that the company is deciding to close, I am surprised that at least three stores are not included on the list:

-Kmart, Greenwood, IN
-Kmart, Indianapolis, IN (W. Washington Street/U.S. 40)
-Sears, Greenwood Park Mall, Greenwood, IN (If this store is one of the two stores closing in Indianapolis, I will NOT be surprised at all.  See why below.)

I can confidently say that the Sears in Lafayette, IN, in Lafayette Square Mall is one of the Indianapolis stores that is closing.  As for the other one, that is speculation at this point.

I was recently in the Sears store in Greenwood I mentioned at a peak hour - 6pm on a Friday night.  I went in there to look at televisions and ended up noticing just how dead this store was.  Aside from the employees in the store, there were probably 10 other customers (including myself) in the ENTIRE store.  Most customers I saw were in the tool area looking at Craftsman tools.

About 10 minutes later, I walked down the mall to JCPenney.  The store was very busy.  If I had to guess how many customers were in the store, I would guess anywhere from 50-65.  Maybe it helped that JCPenney was running a sale.

Sears' competitors are doing a lot better than Sears is.  Sears, along with Kmart, will NOT make it out of this economic downturn.  They are in a world of hurt.

Tyler

P.S.: Not sure about the one in Clarksville, IN, but I'm pretty sure it's in a dead mall.  I want to say the mall is called River Falls Mall, but I'm not positive.

Don't count Kmart out yet. Personnally, I dislike Sears except for Kenmore and Craftsmen... other than that, I hate them.

Now, as an employee of Kmart, I see Kmart being able to make out it of the downturn... heres why
1) Kmart is a debit-free company and has been managing money MUCH better since bankruptcy. Sales may be down, but there is no debit to make-up for.
2) Layaway... with the credit crunch, more and more people will come back to Kmart for the layaway program... something that Wal-Mart stupidly got out of in 2006.
3) People will leave mall and department stores and come-back to Kmart, especially those who are against Wal-Mart and those who believe that shopping at Wal-Mart is "beneath-them." I like higher end stores will have a much more difficult time surviving the current economic downturn.
4) Sales are looking good... at least at my store. We have been consistently over our Sales Plan by least 15% the last couple weeks (and yes, thats been everyday for at least three weeks). Clothing is our biggest seller right now, followed by home decor, electronics and health/beauty.

[momof3]

s good to hear about your Kmart, Personally I like Kmart, I only have one in the area close by, but do shop there now and then usually spending quite a bit of $$$$$.  I always go there Christmas shopping and usually do very well.  I like the fact that they have been around for a long time and don't want to see them suffer the same fate as old favorites like Ames, caldor etc.  
and slurpees are back!!!

[AmesNewington]

That must be the Cromwell K Mart. I went there with my family last year and from the moment I walked in to the store, it felt like and reminded me of Ames. However, K Mart looked more run down inside than the Newington Ames looked like in its last days.

Some may believe K Mart and Sears will close, but you never know. They both have 9 lives. If they put money in to remodeling many stores throughout the US, I don't think they're through just yet. I hope they make it. I wish I could see new stores in CT some day. It likely wouldn't happen, but it would be nice if businesses just don't give up.

[Kmart4life]

The layaway deal is big for me and my family right now. But the down side is that our closest Kmart is about an hour away. Sears Essentials is right down the street but it is so unorganized and the prices seem different from Kmart. Personally I like Kmart and hope they stick around for a long time.

[kendra]

I'm a big fan of Kmart, and I try to give as much business to my local one as possible. While it's certainly not the busiest discounter in my metropolitan area, it is by far my favorite to shop at. Sears I don't spend a whole lot of time or money at, but at the same time, it is an iconic retailer and I would hate to see it close. Kmart is definitely my favorite of the two, however; and the more product crossover that I see between the two stores (e.g., Craftsman tools, etc.) the less relevant Sears becomes, which is on the one hand unfortunate but I think that bringing reputable brands into the Kmart stable has been an effective move for them and one that will continue to pay off. I hope I'm not mistaken in saying this, but I don't think Kmart -- and by extension, Sears -- is in any significant danger of a mass closure or (God forbid) going out of business altogether. 12 stores would be a lot in a small chain but when you're considering a company as vast as Sears/Kmart, it's really a small drop in the figurative bucket, and it's not out-of-character at all for a company to close stores that are no longer a significant source of profit, it simply makes good business sense, especially in a suffering economy such as the current one.

[Kmart4life]

I can agree to that.

[momof3]

I hope you guys are right, I would hate to see Kmart go.

[Caldor1999]

i woudent care if kmart went out i mean we have 3 near me all were once caldor and well they still look like caldor on the inside not to mention they never have anything im looking for and the service is bad at all three locations near me also one of the caldors had a nathans in it untill it closed down and became kmart in 1999 whitch was then turned into a kmart cafe whitch makes the whole store smell horrble

[nibw]

The Sears at the Lafayette Square Mall is indeed closing. I was by there today. The rest of the mall is doing quite well though. Only a few empties inside.

[silvfx66]

KMART needs to get their house in order before I would say they will survive, the store in Cary NC is an eyesore, and there is never more than one checkout open staffed by a person who does not speak english. The store is always a mess and rarely has the items that are on sale in stock.  It also sits next to a  really nasty Food Lion and thats saying something since most Food Lions are nasty.  They will not survive wal mart just due to size unless they find a niche would in the case of the Cary store would be location, easier to get to , in a smaller shopping center which means easy in and out.  But that niche also needs to be clean bright well stocked stores.  Just my two cents.

[CTAmeshopper]

it's the begining....


of the trouble for Sears. :(

[Zayre88]

Sears closing eight more stores

November 13, 2008

BY SANDRA GUY sguy@suntimes.com

Sears will close eight stores, including a Great Indoors store in Schaumburg, in February, in addition to 12 other stores it had previously announced it would close early next year due to poor sales.

The Schaumburg store closing on Feb. 4 will affect 113 employees and result in one Great Indoors store remaining in the Chicago area, in Lombard.

The other store closings in February include three Great Indoors stores in Las Vegas, Woodbridge, N.J., and Chino Hills, Calif.; one Kmart in Fairmont, Minn.; one Sears Essentials in Clearwater, Fla., and two Sears Grand stores in Menomonee Falls, Wis., and American Fork, Utah.

Sears will close the other dozen stores previously announced on Jan. 31.

Bloomberg News reports that Sears Holdings Corp., based in Hoffman Estates, is entering the holiday season with 42 percent less cash on hand than a year ago.

http://www.suntimes.com/business/1278864,sears-closing-stores-111308.article

[Zayre88]

Originally posted by kendra
I'm a big fan of Kmart, and I try to give as much business to my local one as possible. While it's certainly not the busiest discounter in my metropolitan area, it is by far my favorite to shop at.

At least the Bangor store is quite large and well kept and i think it's more modern than others in Maine.  If only Kmart could invest a bit more to improve their current stores.

[kendra]

Originally posted by Zayre88

Originally posted by kendra
I'm a big fan of Kmart, and I try to give as much business to my local one as possible. While it's certainly not the busiest discounter in my metropolitan area, it is by far my favorite to shop at.

At least the Bangor store is quite large and well kept and i think it's more modern than others in Maine.  If only Kmart could invest a bit more to improve their current stores.

Agreed. Those are certainly factors in its favor, and I hope it will stick around for a long time. I think that, yes, with a little investment in appearance and possibly staffing, Kmart's image could be improved considerably, at least in certain markets. Granted, that sort of thing takes money that Sears Holdings may not necessarily have to invest, but that is merely speculation on my part. Nevertheless, when it comes to Kmart, I'm really only familiar with the Bangor and Waterville locations, Waterville being another one that I think does fairly well, they've always got a decent amount of customers when I'm in there, and the store seems relatively tidy. They do have some quirky old signage (their Music and Video department is totally rad!) but then again, to someone like myself that is appealing. To the average customer, however, it is probably not! :P

[captjack]

Although Sears Holdings has 42% less cash, they have cash! Unlike the majority of retailers they have enough to see out the storm plus as smaller retailers fall K-Mart and Sears will pick up the slack. Why do I say this? Because there is a large portion of the nation who loathe WalMart*.
The KMarts in our area, Utah, have received upgrades in the interior, some converted to Sears Holdings or whatever they are named. The layaway idea is a stroke of genius, although not a new idea. Our local store has lines everyday of people placing items on layaway. WalMart does not need to offer this service and I do hope it will be seen as a mistake. But I am not counting on it as their size and power will see them through. Cheers, jack.

[KmartDanny09]

Originally posted by captjack
Although Sears Holdings has 42% less cash, they have cash! Unlike the majority of retailers they have enough to see out the storm plus as smaller retailers fall K-Mart and Sears will pick up the slack. Why do I say this? Because there is a large portion of the nation who loathe WalMart*.
The KMarts in our area, Utah, have received upgrades in the interior, some converted to Sears Holdings or whatever they are named. The layaway idea is a stroke of genius, although not a new idea. Our local store has lines everyday of people placing items on layaway. WalMart does not need to offer this service and I do hope it will be seen as a mistake. But I am not counting on it as their size and power will see them through. Cheers, jack.

Exactly!
People hate Wal-Mart for a variety of reasons... we are popular with older people because they don't have to walk as far. People even hate Target because its "owned" by a French company (I have no clue if this indeed factual or a myth). But Kmart is indeed here to stay.

I believe that Kmart (even as an employee) has far better service than any Wal-Mart, Target or Meijers. Even when I shop at other Kmarts besides the one I work at, I'm always greeted and the employees are always attentive... yes, sometimes the lines get long when they only have two registers open but the cashier's friendliness makes up for it. At my local Wal-Mart, I have yet to be greeted by the "People Greeter" and usually the floor associates are huddled together sharing stories about their plans for the weekend.

Keeping layaway is a MAJOR reason Kmart is sticking around. My store has made their 4th quarter sales plan, and it continues to increase.

[kendra]

Originally posted by KmartDanny09
Keeping layaway is a MAJOR reason Kmart is sticking around. My store has made their 4th quarter sales plan, and it continues to increase.

Yes, I think this season will really be indicative of just how much of an asset the layaway program will prove to be for Kmart in the current economic climate. I, for one, think it will very much be to their advantage.

[KmartDanny09]

Originally posted by kendra

Originally posted by KmartDanny09
Keeping layaway is a MAJOR reason Kmart is sticking around. My store has made their 4th quarter sales plan, and it continues to increase.

Yes, I think this season will really be indicative of just how much of an asset the layaway program will prove to be for Kmart in the current economic climate. I, for one, think it will very much be to their advantage.

Layaway has been a MAJOR asset... as credit continues to tighten, customers need alternative programs to purchase Christmas gifts. While many retailers have a hard time selling televisions, video games and other large-ticket items, they continue to fly off over shelves.  In fact, we're running out of places to put layaways... we're resorting to using offices, old storage rooms and even using the receiving area!

An another thing layaway is doing for Kmart is that it's bringing back customers. Many of my customers talk about how they haven't been to ANY Kmart in years... and the only reason they did was because of layaway. Hopefully they have good experiences and continue to shop at Kmart.

[Kmart4life]

our local Kmart had long line for layaway today and the store was packed with people an pretty good Black Friday deals.  Long live Kmart

[kendra]

Originally posted by KmartDanny09

Originally posted by kendra

Originally posted by KmartDanny09
Keeping layaway is a MAJOR reason Kmart is sticking around. My store has made their 4th quarter sales plan, and it continues to increase.

Yes, I think this season will really be indicative of just how much of an asset the layaway program will prove to be for Kmart in the current economic climate. I, for one, think it will very much be to their advantage.

Layaway has been a MAJOR asset... as credit continues to tighten, customers need alternative programs to purchase Christmas gifts. While many retailers have a hard time selling televisions, video games and other large-ticket items, they continue to fly off over shelves.  In fact, we're running out of places to put layaways... we're resorting to using offices, old storage rooms and even using the receiving area!

An another thing layaway is doing for Kmart is that it's bringing back customers. Many of my customers talk about how they haven't been to ANY Kmart in years... and the only reason they did was because of layaway. Hopefully they have good experiences and continue to shop at Kmart.

That's fantastic news, Danny -- thank you for sharing. I hope my local Kmart is reaping the same rewards as your store. :bouncing:

[Lastdaysofrain]

Target is not owned by a French company.

Also, two of the KMarts near me in MA have stopped doing Layway, I take that as bad sign.

[wwefan101]

i went past our kmart plazza parking lot   a few time on black friday and the lot was full our kmart is doing good id say they will be around for another 20 years at least

[wwefan101]

and the kmart in webster ma still has laway

[kendra]

Originally posted by Lastdaysofrain
Also, two of the KMarts near me in MA have stopped doing Layway, I take that as bad sign.

Well, there could be a number of reasons for that -- I would hypothesize that the most likely one would be that too many people were putting stuff on layaway and then not coming through to pay for it. While it's not as if the item is ever in the actual possession of the customer, and is not a loss in that respect, it HAS been removed from the shelves, and, as anyone who's worked in retail or grocery or anything of the sort well knows, if an item isn't available on the shelves for people to buy, it cannot make the retailer any money. So, that would be my guess. I wouldn't necessarily assume at all that it is a sign of anything, say, fiscally wrong at said Kmart locations (at least not due to the layaway program)...more a sign that they were encountering too many deadbeats using the program and no longer found it profitable.

But I could be completely wrong! :P

[KmartDanny09]

Originally posted by kendra

Originally posted by Lastdaysofrain
Also, two of the KMarts near me in MA have stopped doing Layway, I take that as bad sign.

Well, there could be a number of reasons for that -- I would hypothesize that the most likely one would be that too many people were putting stuff on layaway and then not coming through to pay for it. While it's not as if the item is ever in the actual possession of the customer, and is not a loss in that respect, it HAS been removed from the shelves, and, as anyone who's worked in retail or grocery or anything of the sort well knows, if an item isn't available on the shelves for people to buy, it cannot make the retailer any money. So, that would be my guess. I wouldn't necessarily assume at all that it is a sign of anything, say, fiscally wrong at said Kmart locations (at least not due to the layaway program)...more a sign that they were encountering too many deadbeats using the program and no longer found it profitable.

But I could be completely wrong! :P

Don't forget, that Kmart has put restrictions on layaways for the Christmas season. Starting December 12, no layaways can put into the system... you may pay on them, but NOT take out any more, until January 12.

I have heard that some stores are ending for a few reasons... storage, staff shortages, etc. Just check after the Christmas season to see if they'll start putting more on.


Now, the last poster is correct in many respects. Layaway does encourage shoppers to "fantasy shop" that is, to put more items into layaway than one could pay for with the hope of either getting enough to pay for it (think of it as floating a check... you write it on Thursday and hope it isn't processed until payday) or they believe that can just take the item out of layaway...

This a common problem, and I have seen it dozens of times where a customer will put HUNDREDS (sometimes thousands) of dollars into layaway, but a week or two later for the same merchandise to returned...

So please, only put items you know you pay for on layaway... remember, you can take out as many layaways as you want at the same time, but you can't remove items (unless you remove everything!) once there in the system....

[Zayre88]

Sears posts 3rd-qtr loss due to charge, weak Kmart and Sears US results, to close more stores

Associated Press

Last update: December 2, 2008 - 5:31 AM

HOFFMAN ESTATES, Ill. - Sears Holdings says hefty charges and weak results at its U.S. department stores and Kmart locations drove it to post a third-quarter loss, and the retailer says it will close eight more underperforming stores this year.

The Hoffman Estates, Ill.-based company, led by financier Edward Lampert, also boosted its stock buyback plan by $500 million.

Sears Holdings Corp. reported a loss of $146 million, or $1.16 per share, compared with year-ago profit of $4 million, or 3 cents per share. Excluding a hefty charge related to 14 store closings and gains on Sears Canada hedges, Sears posted a loss of 90 cents per share in the latest period.