With their points program, Walmart and Target cannot touch Kmart on price. I think as the new Kmart moves forward we will see great things. Kmart is true to its roots as a discounter and in the discount general merchandise world, nothing speaks like price. The truth that isn't being told is that in the last ten years Walmart as a company is no longer is setup in a way where it can respond to price as it was once able to. Kmart is going to be the low price leader in a sector where price matters more than anything and without a Walmart that is able to respond. Walmart without competition as in the 80s, 90s, and 00s is now unable to drastically slash prices without upending their cost structure. They pivoted from undercutting everyone to a model where they maximize prices as much as the competition allows. Kmart is now a lean mean company with nearly 400 great stores and a rewards program that has focused on price. Items as ridiculously inexpensive at Kmart compared to Walmart. Walmart shoppers properly using the Kmart points program could easily cut their spending in half on clothing, toys, seasonal, garden, decor, snacks etc. All we need now that the company is stable is for proper advertising of these lower prices. For example say something is $29.99 at Walmart and $31.99 at Kmart, with the ShopYourWay platform, that $31.99 item is easily $19.99 or $23.99 and so on at Kmart.
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I think the points program could be simplified, but that it is a good pricing strategy if easier to use. Those who can't be bothered with coupons or points systems to get items for $10 cheaper than Walmart are more likely to not care whether an item is slightly higher than Walmart without the points. I find it hard to believe that anyone finds typing in their phone number and asking to use points not worth a price $5, $10 etc cheaper than Target or Walmart.
It would probably be best if points offers didn't exclude household and food, but kept the higher price OR had lower prices, one or the other. I agree that the prices on some of those items can be higher and at the same time excluded from free cash offers.
It is no more relevant whether you will shop at a Kmart 20 minutes away than if you will shop at Target or Dollar General 20 minutes away. What is relevant is whether those who shop at the Target or Dollar General that is 20 minutes away will shop at Kmart. Not driving past 10 Walmart and 10 Targets has no more bearing on the ability of Kmart to gain customers and profits in the markets they serve than the ability of the 9 Walmart and 9 Targets that you also don't frequent.
It is not relevant how far Kmart is from the homes of those unwilling to travel to go to Kmart, it is relevant whether those who shop where Kmart is still located whether or not they want to spend money and shop at Kmart.
The only problem is that 1) I shouldn't have to calculate my savings. Wasn't SHC going to simplify its pricing? 2) I'm not driving past 10 Wal-marts and Targets to get to Kmart. Did you calculated the extra drive time and gas into your calculations? 3) Why would I want to walk the maze of old Kmart merchandise in a run-down store? Wal-Mart and Target is organized and kept clean. What I want as a consumer: 1) Exact pricing! 2) Clean, organized stores, 3) store close to my house, 4) a worthwhile website that is easy to navigate. I ordered 30 times from Amazon in the last 4 months, and don't have prime! I never once paid for shipping as I wait until I reach the minimum. Start giving consumers what they want, and they will flock to you. Keep distancing yourself from consumers and they will shop your competition. But then, that isn't what this is all about. It's about a Billionaire exiting a 15 year experiment, with all the property in tow.
@1btv - I agree with your point. The nearest Kmart is 30 miles away, however, Walmart, Big Lots, Family Dollar, Rural King, Ollie's, Aldi, two Dollar Generals, and two Discount Drug Marts are all within 3 miles of my home. I have plenty of local, convenient, and competitive discount shopping options! No need to shop at some distant Kmart.
Great! Now if only there were a Kmart within 10 miles of my house. In the Detroit area, where Kmart began...
Kmart in Saugus MA closing. According to many, it's long overdue. There are people on the highway nearby waiving signs so shoppers know that not only it still exists but that it's closing with 30% off.
Kmart in Somerville MA appears to be hanging on. For now. It's in a redeveloped hot spot shopping plaza but unfortunately, there are still few customers. Which is good because there is only one cashier on and she is usually closing the register. The store is relatively clean but as mentioned on here, there are the same products in multiple locations, presumably to make the store look stocked.
The coupons from SYW work only some of the time even when you are very careful to avoid exceptions. Same for the so called free cash. The lone cashier could not care less and I almost don't blame her.
I haven't experienced these other Kmarts that you speak of. Not in the Boston area.
Oh and while I’m at it, the prices aren’t all that great. Some prices are good, most are more. Several times I have looked into buying garden supplies at Kmart only to find that Home Depot had the SAME thing for $3-5 less. If rather go to Home Depot and buy it for Less $ rather than trying to figure out Home much I need to spend in order to use my $5 off $35 coupon which makes me spend more in the end. Also prices on things like mayonnaise is absolutely ridiculous. Really $5.29 when I can get it name brand at Kroger for 2.50-3.00 most weeks.
You mean a convoluted rewards program that doesn’t always work, or the complicated promotions which rarely ring? Yep customers love fine print and jumping through hoops. Personally I like straight forward pricing and I think most people are the same. I wouldn’t mind the rewards if the program wasn’t so ridiculously confusing. We joke at my store that you need a masters degree in SYW in order to be a minimum wage cashier.
How cute. A little Kmart cheerleader. You sound like a brainwashed robot. You made one error, though...tsk, tsk, you're not a customer, you're a member!
@SBJ2yMS-jxo Backpedaling Backpedaling. Excuses excuses.
Kmart's clothing section is equivalent to other discounters, only Target's is better, but then Target isn't your average discounter. They don't seem to be much into electronics and that's probably a wise decision as it's not one of their strengths.
What's with all this propaganda for Kmart recently? It's kinda b---s--- if you ask me. I mean, their electronic selection alone isn't worth d--k. Not to mention their clothing isn't really super great either. Guess the corp plants are out in full force trying to save it from dying!
KMarts roots "ashes to ashes, dust to dust."
Kmart prices are lower because they are liquidating
OP is totally right!!
I bet we open new stores starting in 2020!!
It's too late for Kmart, they are finished.
I'm not a corporate blogger, just a customer who is passionate about Kmart. Am I not allowed an opinion about what I see happening with the company and what I see as the future of Kmart and what they're doing? I'm hopeful that the closings are over and now that profitable the company is moving forward as a smaller, focused, profitable chain. I'm really interested to see in the future if this comes true.
Thanks for the information, Corporate blogger!!
Discount stores are meant to run on thinner margins, that's what makes them popular and discounters. Walmart no longer prices items as a discounter who tries to stack high and price low, they try to keep higher margins. Discounters rise and fall and Kmart is actually taking the correct approach for a discounter. You gain in the discounter world not by protecting margins, but by selling more. Corporate and the Kmart associates need to properly advertise their price advantage and properly promote Kmart to the customer. Sears Holdings profitability problems in the past have likely been more to do with falling sales than poor margins. Thinner margins, but sales increases that overcome and make up for the thinner margins would likely be the best result. The only way those sales increases will come is if the workers at all levels of the company properly educate the public about those price advantages. More people through the doors and opening wallets is how to increase profitability. I'm sure Sears Holdings has determined what margins are needed for profit and gear the program around that price level.
This is why they are losing money.