I think I heard that Kmart is now going to sell items from other businesses that have been liquidated. Basically, becoming a Big Lots store or a glorified thrift store. How is this going to work? So I guess that now the merchandise will match the store interior. Old, worn-out, dated and dying.
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I'm not surprised at all, if deteriorating credit would be the reason as to why they would be going this route. The Kmart where I used to work would "nickel and dime" the DSD vendors for credits from half-eaten bags of food and soda, which is obviously came from stolen merchandise left behind. And if they don't get their credits, they are basically dictating their payment terms to the DSD vendors and will even go as far as not paying them at all. Thanks to the morons called, "District Managers." They were also doing this to McLane, one of their major food suppliers and they nearly lost them as a vendor. I would suspect they are in danger of losing them again. Their 605 department (Merchant Claims and Returns) are instructed to do this and get as much credit from RGC by essentially garbage digging. A total abuse to the system. Very pathetic.
Pure speculation on my part. But with K-mart's rapidly deteriorating credit, they might soon be operating on a COD basis only soon with their suppliers. Getting paid in a timely manner by K-mart will probably prove to be difficult in the future.
We already are a BIg Lots. We barely sell any merchandise at full price. Only discounted items and items where the box is open. Store is stuck in the 70's in the look and feel.
Customers constantly complain of how dark it is in the store,rusted shelves, outdated products, etc. OUr returns of product is outrageous. I think anything we sell at least half is returned as defective or the customer uses it and returns it.
I have a feeling they are doing this because their current suppliers/vendors are cutting off their credit lines.
http://nypost.com/2016/02/17/kmart-to-stock-shelves-with-bankrupt-companies-products/
The Kmart I work in is in Elizabethtown, Pa. We heard the store was one of those REIT stores and by the end of summer will be a Wagman supermarket.
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