abhishreshthaa
Abhijeet S
SWOT ANALYSIS ON Kmart : Kmart (sometimes styled as "K-Mart") is a chain of discount department stores in the United States, Puerto Rico, the U.S. Virgin Islands, and Guam. The chain acquired Sears in 2005, forming a new corporation under the name Sears Holdings Corporation. Kmart also exists in Australia and New Zealand (see Kmart Australia), although it now has no relation to the American stores except in name, after U.S. equity in the Australian business was purchased in the late 1970s. Kmart is the third largest discount store chain in the world, behind Wal-Mart and Target; all three chains were founded in 1962.
As of January 30, 2010, Kmart operated a total of 1,327 (13 closing by late May) Kmart stores across 49 states, Guam, Puerto Rico, and the U.S. Virgin Islands. This store count included 1,361 discount stores, averaging 92,000 sq ft (8,500 m2), and 29 Super Centers, averaging 165,000 sq ft (15,300 m2).[1]
Kmart's world headquarters was located in Troy, Michigan, in a sprawling complex which, since Kmart's relocation to Illinois, has been slated for demolition.[2] However, at this current time, no actual demolition efforts are underway, and the proposed mixed-use complex earmarked for the site, the Pavilions of Troy, has not begun construction due to issues with funding.
Strengths
* Strong brand & loyal shoppers
* Excellent customer service
* Operating margins 2x the average of most publicly owned supermarkets
* Supply chain efficiency
* Considered best-in-class amongst retailers
* Innovation, open to new ideas
* Great quality in food, perishables
* Variety, selection of products
* Employee benefits, compensation, work satisfaction
* Unique and entertaining shopping experience
Weaknesses
* Very large grocery stores - not most efficient shopping experience
* High prices on prepared foods
* Diluted - not a lot of stores
* Private ownership restricts capital raise for faster store expansion
Opportunities
* Store growth
* Growth in higher margin categories
* Expand services - culinary schools, healthcare, others
* Private label growth to enhance brand & margins
Threats
[*] Competition from two fronts: high-end (Whole Foods) and price competitive (Wal-Mart)
[*] Giant Landover (Ahold) remodeling stores
[*] Inability to absorb price increases due to smaller scale vs. national competitors
[*] Economic downturn affecting core shoppers' wallets
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As of January 30, 2010, Kmart operated a total of 1,327 (13 closing by late May) Kmart stores across 49 states, Guam, Puerto Rico, and the U.S. Virgin Islands. This store count included 1,361 discount stores, averaging 92,000 sq ft (8,500 m2), and 29 Super Centers, averaging 165,000 sq ft (15,300 m2).[1]
Kmart's world headquarters was located in Troy, Michigan, in a sprawling complex which, since Kmart's relocation to Illinois, has been slated for demolition.[2] However, at this current time, no actual demolition efforts are underway, and the proposed mixed-use complex earmarked for the site, the Pavilions of Troy, has not begun construction due to issues with funding.
Strengths
* Strong brand & loyal shoppers
* Excellent customer service
* Operating margins 2x the average of most publicly owned supermarkets
* Supply chain efficiency
* Considered best-in-class amongst retailers
* Innovation, open to new ideas
* Great quality in food, perishables
* Variety, selection of products
* Employee benefits, compensation, work satisfaction
* Unique and entertaining shopping experience
Weaknesses
* Very large grocery stores - not most efficient shopping experience
* High prices on prepared foods
* Diluted - not a lot of stores
* Private ownership restricts capital raise for faster store expansion
Opportunities
* Store growth
* Growth in higher margin categories
* Expand services - culinary schools, healthcare, others
* Private label growth to enhance brand & margins
Threats
[*] Competition from two fronts: high-end (Whole Foods) and price competitive (Wal-Mart)
[*] Giant Landover (Ahold) remodeling stores
[*] Inability to absorb price increases due to smaller scale vs. national competitors
[*] Economic downturn affecting core shoppers' wallets
[/list]
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