Scribd
Upload
235 views13 pages

Presented By: Ramakrishna Menon Elitsa Shumarova Shibani Muzumdar

Kmart, founded in 1899, filed for Chapter 11 bankruptcy protection in January 2002, making it the largest retail bankruptcy in history at the time with $17 billion in assets. Kmart struggled against competitors like Walmart by engaging in a price war and failing to differentiate its brand image, update store designs, or target specific customer segments. Expert advice included overhauling Kmart's image, redefining its strategy, improving stores and advertising, and focusing on defined target markets.

Uploaded by

Satyanarayana Gangani
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
235 views13 pages

Presented By: Ramakrishna Menon Elitsa Shumarova Shibani Muzumdar

Kmart, founded in 1899, filed for Chapter 11 bankruptcy protection in January 2002, making it the largest retail bankruptcy in history at the time with $17 billion in assets. Kmart struggled against competitors like Walmart by engaging in a price war and failing to differentiate its brand image, update store designs, or target specific customer segments. Expert advice included overhauling Kmart's image, redefining its strategy, improving stores and advertising, and focusing on defined target markets.

Uploaded by

Satyanarayana Gangani
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 13

Presented By:

Ramakrishna Menon
Elitsa Shumarova
Shibani Muzumdar
 What is Kmart
A retailing legend founded by Sebastian S. Kresge in
1899, is currently the second largest discount retailer in the
US of A, with a spread of more than 2000 stores and
employing more than 275,000 personnel.
 Goal: Quality products at low price.
 Financial strength:
$17 billion in assets
$37 billion in annual revenue
 Competitors:
Wal-Mart Stores Inc.
Target
Sears
KMART TIMELINE
Major events in history of the 103-year-old company
 1899: Sebastian S. Kresgy founds S.S.Kresge Co
 1918: Becomes publicly traded on the NYSE
 1966: Sales top $1 billion, runs 915 stores
 1977: S.S.Kresge Co. changes its name to Kmart Corp
 1984: Purchases Walden Book Co. and Home centers of America
 1990: Buys sporting goods chain”The Sports Authority”
 1991: Acquires 90% of OfficeMax
 1995: Spins off Borders Group Inc. and sells remaining
stake in The Sports Authority and OfficeMax
 2001: Buys its Bluelight.com Internet service
KMART TIMELINE

Jan. 22, 2002:


Files for Chapter 11
bankruptcy protection
KMART FILES CHAPTER 11
 Jan. 22, 2002, Kmart Corp., the second
largest discount retailer in the United States,
filed for chapter 11 bankruptcy protection.
 Biggest retail bankruptcy ever in history, with
$17 billion in assets.
OTHER US RETAIL BANKRUPTCY
COMPANY DATE ASSETS
Kmart Corp. 22/01/2002 $17 billion
Federated 15/01/1990 $7.9 billion
Department Stores
Macy & Co. Inc 27/10/1992 $4.8 billion

Montgomery Ward 07/07/1997 $4.5 billion

Allied Stores Corp. 15/01/1990 $3.5 billion


WHAT IS CHAPTER 11
BANKRUPTCY ?
 Chapter 11 bankruptcy filing gives a company
protection from creditors while it continues
operating and attempting to reorganize, all
the while under the supervision of a
government body.
THE DOMINO EFFECT

 Fleming Companies (FLM)


 Footstar (FTS)
 Global Sports (GSPT)
 Kimco Realty (KIM)
 Martha Stewart Living Omnimedia (MSO)
WHAT WENT WRONG?
Price War with Wal-Mart:
Campaign on Cheapness
WHAT WENT WRONG?…….
 Gregorian, under-stocked stores
 Poor customer service
 Inefficient advertising
 Stale image
 Dreaming of a mass market
 Lack of Market Segmentation
WANTED ALL, GOT…
EXPERT ADVICE
 Image overhaul.

 Redefine the mission and vision statement


 Strategize the stores and manpower.

 In-Store design changes.


 Efficient use of modern
channels of Advertisement.
 Define target markets and
develop strategies.

 Martha Stewart’s brand – the busy moms

You might also like