More Kmart stores closing

[kkt]

Seriously, why isn't the government looking into this.  It seems to me that the CEO is purposely killing the corporation for personal gain.

Would it be illegal even if it was certain that was what was going on?  The remedy for a misbehaving CEO is for the shareholders to revolt.

[Rothman]

Seriously, why isn't the government looking into this.  It seems to me that the CEO is purposely killing the corporation for personal gain.

Would it be illegal even if it was certain that was what was going on?  The remedy for a misbehaving CEO is for the shareholders to revolt.

Could be a form of fraud.

[jeffandnicole]

Seriously, why isn't the government looking into this.  It seems to me that the CEO is purposely killing the corporation for personal gain.

Would it be illegal even if it was certain that was what was going on?  The remedy for a misbehaving CEO is for the shareholders to revolt.

Could be a form of fraud.

He's closing underperforming stores.  Just look thru the 17 pages of remarks here.  Nearly everyone has said how they don't see people in the stores.  They don't see cars in the parking lots.  They haven't been in Kmart in years.  They're surprised they're still in business.  The stores haven't been remodeled. 

So, how is the CEO misbehaving?  He's certainly in his right to close underperforming stores.  And numerous people here have basically agreed with his decisions!

[AlexandriaVA]

There are countless legitimate reasons to close stores, even profitable ones. Simply blurting out "it could be fraud" is pretty weak without any corresponding evidence.

[AlexandriaVA]

Wow. Springfield going bye-bye.  The anchor tenant of Springfield Plaza.   I've been to that one before.  There's one about 20 minutes away in Holyoke so it's not a total end to Kmart in the Pioneer Valley.

This made me do a double-take because there's a K-Mart in Springfield Plaza here in Virginia, too, but it's staying open (for now). In my unscientific observation it seems to get a lot of foot traffic from nearby apartments.

Sure ain't the Trader Joe's customers...

BTW, is it unusual that Springfield Plaza has 2.5 grocery stores (Giant, TJ, and the K-Mart grocery section)?

[Rothman]

There are countless legitimate reasons to close stores, even profitable ones. Simply blurting out "it could be fraud" is pretty weak without any corresponding evidence.

Misleading shareholders is fraud.

[1995hoo]

Wow. Springfield going bye-bye.  The anchor tenant of Springfield Plaza.   I've been to that one before.  There's one about 20 minutes away in Holyoke so it's not a total end to Kmart in the Pioneer Valley.

This made me do a double-take because there's a K-Mart in Springfield Plaza here in Virginia, too, but it's staying open (for now). In my unscientific observation it seems to get a lot of foot traffic from nearby apartments.

Sure ain't the Trader Joe's customers...

BTW, is it unusual that Springfield Plaza has 2.5 grocery stores (Giant, TJ, and the K-Mart grocery section)?

Plus the Springfield Butcher, which does a thriving business.

[jeffandnicole]

There are countless legitimate reasons to close stores, even profitable ones. Simply blurting out "it could be fraud" is pretty weak without any corresponding evidence.

Misleading shareholders is fraud.

If you Google 'Kmart misleading investors', you'll find a multitude of stories. Except....they're all from 2005 or so, where the PREVIOUS CEO had mislead investors.

The current CEO has been fairly straightforward with the investors, issuing reports of serious doubt the chains can continue to operate. There doesn't appear to any misleading going on there.

[AlexandriaVA]

Wow. Springfield going bye-bye.  The anchor tenant of Springfield Plaza.   I've been to that one before.  There's one about 20 minutes away in Holyoke so it's not a total end to Kmart in the Pioneer Valley.

This made me do a double-take because there's a K-Mart in Springfield Plaza here in Virginia, too, but it's staying open (for now). In my unscientific observation it seems to get a lot of foot traffic from nearby apartments.

Sure ain't the Trader Joe's customers...

BTW, is it unusual that Springfield Plaza has 2.5 grocery stores (Giant, TJ, and the K-Mart grocery section)?

Plus the Springfield Butcher, which does a thriving business.

Of course, him too. 2.75 groceries then. Of course, it's such a big shopping center that the distance between the butcher section of Giant and the Springfield Butcher is enough to be a few city blocks .

[thenetwork]

On the other side of the "Going Out Of Business" coin, in my town there is a shyster who sells western wear and has big signs on his building saying "Going Out Of Business".  These signs have been up for over 3 YEARS!!!

Coincidentally, there is a place a block or so down that just opened...for his SAME business. 

And now, he is touting up to 70% off in his so-called "GOOB Sale".  I went in looking for a leather belt.  He's got the prices jacked up to $160, less 70%, or $48.00.  I can get a similar belt for less than this POS sells at his 70% discount. 

I'm surprised this tool hasn't been fined and/or shut down by the state for false advertising -- you can't/don't stay open for 3+ years once you actually hang a "Going Out Of Business" sign on your door.

Kmart/Sears can do it since they haven't put that official sign on the bulk of their remaining stores...yet...although everyone knows that they pretty much are toast.

[hbelkins]

I may have said this before, I'm not sure, but it's obvious why Kmart is slipping. The prices are higher than Walmart, and the facilities seem older and less-well-kept. Kmart never aggressively tried to compete with Walmart when Wally World started becoming dominant in the discount department store field.

Even if I can find an open Kmart -- the nearest one to me that I can think of is in Frankfort -- I will usually choose Walmart if I have a great number of items to purchase. If I'm in Frankfort and just need one thing quickly, and don't want to battle the crowds, I may go to Kmart. IF (a big IF) I think they have it in stock. It's been awhile since I have been in the Frankfort Kmart. Last one I was in was in Vienna, WV. And that was just because it was near my hotel and I just needed one quick thing.

[SP Cook]

I may have said this before, I'm not sure, but it's obvious why Kmart is slipping. The prices are higher than Walmart, and the facilities seem older and less-well-kept. Kmart never aggressively tried to compete with Walmart when Wally World started becoming dominant in the discount department store field.

Yep.  K-Mart is just the most national of the many dozens of more regional chains that Wal-Mart took out long ago.  People can rant and rave from the right or the left about it, but the fact is that before Wal-Mart the general retailing business was fat, dumb, and happy and happy to be fat, dumb and happy.  Walton created a company that will look for every possible cost savings in every possible segement (labor, suppliers, workers, landlords, logistics, whatever) and pass that savings on to me, the customer, without sacrificing clean stores and quality products considering the market segment.  Yes, he made a profit.  So did K-Mart, at one time. 

The "Wal-Mart way" of doing things (save every cent you can on every aspect of whatever you do) is being applied to lots of other industries. 

[thenetwork]

Another reason why Walmart stole the crowds of Kmart:  During their initial national growth in the 90s, they struck a chord with the population pushing their "Made In The USA" credo at the time.  Once Walmart surpassed Target and Kmart as the discount store leader, they quietly dropped that moniker and more of their products were foreign made again.

Kmart only responded with coming up with the 3 flavors of their store:  Regular K-mart, Big K and Super K (their version of Walmart) with only slight remodels to existing original stores.

[vdeane]

There are countless legitimate reasons to close stores, even profitable ones. Simply blurting out "it could be fraud" is pretty weak without any corresponding evidence.

Misleading shareholders is fraud.

If you Google 'Kmart misleading investors', you'll find a multitude of stories. Except....they're all from 2005 or so, where the PREVIOUS CEO had mislead investors.

The current CEO has been fairly straightforward with the investors, issuing reports of serious doubt the chains can continue to operate. There doesn't appear to any misleading going on there.

Lambert actually acknowledging the company may not survive is a relatively recent phenomena.  Previously, he'd pretend that he was taking measures to make the stores profitable again while doing everything he could to run the company into the ground so he could sell the real estate.

[roadman65]

Two Guys did that.  They had what Walmart has today, but failed do to not putting every effort into the good that they once had.  They closed and made a killing on real estate instead.

Kmart ruined themselves just as Winn Dixie Supermarkets did.  They failed to achieve what their customers wanted, but Walmart gave us all what we wanted and still want.

[US71]

Wal-Mart started as a regional chain, never building more than a day's drive from the warehouse, and often where land was cheap. Plus the philosophy of stack it high, sell it cheap. Nobody gave Wal-Mart a second thought until they became the 800lb gorilla.

[jp the roadgeek]

Another reason why Walmart stole the crowds of Kmart:  During their initial national growth in the 90s, they struck a chord with the population pushing their "Made In The USA" credo at the time.  Once Walmart surpassed Target and Kmart as the discount store leader, they quietly dropped that moniker and more of their products were foreign made again.

Kmart only responded with coming up with the 3 flavors of their store:  Regular K-mart, Big K and Super K (their version of Walmart) with only slight remodels to existing original stores.

Target also tried that 3 flavor approach for a while with regular Target, Target Greatland, and Super Target (although I've never heard of a Super Target being anywhere in the Northeast)

[cl94]

Another reason why Walmart stole the crowds of Kmart:  During their initial national growth in the 90s, they struck a chord with the population pushing their "Made In The USA" credo at the time.  Once Walmart surpassed Target and Kmart as the discount store leader, they quietly dropped that moniker and more of their products were foreign made again.

Kmart only responded with coming up with the 3 flavors of their store:  Regular K-mart, Big K and Super K (their version of Walmart) with only slight remodels to existing original stores.

Target also tried that 3 flavor approach for a while with regular Target, Target Greatland, and Super Target (although I've never heard of a Super Target being anywhere in the Northeast)

There weren't any Super Targets in the northeast. Closest they got were 2 in Northern Virginia and several in Indiana. There are/were multiple Greatlands out here, every one I know of being in the NYC metro area.

[jp the roadgeek]

Another reason why Walmart stole the crowds of Kmart:  During their initial national growth in the 90s, they struck a chord with the population pushing their "Made In The USA" credo at the time.  Once Walmart surpassed Target and Kmart as the discount store leader, they quietly dropped that moniker and more of their products were foreign made again.

Kmart only responded with coming up with the 3 flavors of their store:  Regular K-mart, Big K and Super K (their version of Walmart) with only slight remodels to existing original stores.

Target also tried that 3 flavor approach for a while with regular Target, Target Greatland, and Super Target (although I've never heard of a Super Target being anywhere in the Northeast)

There weren't any Super Targets in the northeast. Closest they got were 2 in Northern Virginia and several in Indiana. There are/were multiple Greatlands out here, every one I know of being in the NYC metro area.

The Greatland we had dropped the signage a few years ago and is now a regular Target like every other store around here. 

[JJBers]

Another reason why Walmart stole the crowds of Kmart:  During their initial national growth in the 90s, they struck a chord with the population pushing their "Made In The USA" credo at the time.  Once Walmart surpassed Target and Kmart as the discount store leader, they quietly dropped that moniker and more of their products were foreign made again.

Kmart only responded with coming up with the 3 flavors of their store:  Regular K-mart, Big K and Super K (their version of Walmart) with only slight remodels to existing original stores.

Target also tried that 3 flavor approach for a while with regular Target, Target Greatland, and Super Target (although I've never heard of a Super Target being anywhere in the Northeast)

There weren't any Super Targets in the northeast. Closest they got were 2 in Northern Virginia and several in Indiana. There are/were multiple Greatlands out here, every one I know of being in the NYC metro area.

The Greatland we had dropped the signage a few years ago and is now a regular Target like every other store around here.

Might've been one nearby in Connecticut/Rhode Island. Maybe Dayville's?

[jeffandnicole]

Another reason why Walmart stole the crowds of Kmart:  During their initial national growth in the 90s, they struck a chord with the population pushing their "Made In The USA" credo at the time.  Once Walmart surpassed Target and Kmart as the discount store leader, they quietly dropped that moniker and more of their products were foreign made again.

Kmart only responded with coming up with the 3 flavors of their store:  Regular K-mart, Big K and Super K (their version of Walmart) with only slight remodels to existing original stores.

Target also tried that 3 flavor approach for a while with regular Target, Target Greatland, and Super Target (although I've never heard of a Super Target being anywhere in the Northeast)

The Target at Brandywine Commons in Delaware (US 202 at DE 92) was a Greatland or Super Target, before losing the adjective.

[jp the roadgeek]

Another reason why Walmart stole the crowds of Kmart:  During their initial national growth in the 90s, they struck a chord with the population pushing their "Made In The USA" credo at the time.  Once Walmart surpassed Target and Kmart as the discount store leader, they quietly dropped that moniker and more of their products were foreign made again.

Kmart only responded with coming up with the 3 flavors of their store:  Regular K-mart, Big K and Super K (their version of Walmart) with only slight remodels to existing original stores.

Target also tried that 3 flavor approach for a while with regular Target, Target Greatland, and Super Target (although I've never heard of a Super Target being anywhere in the Northeast)

There weren't any Super Targets in the northeast. Closest they got were 2 in Northern Virginia and several in Indiana. There are/were multiple Greatlands out here, every one I know of being in the NYC metro area.

The Greatland we had dropped the signage a few years ago and is now a regular Target like every other store around here.

Might've been one nearby in Connecticut/Rhode Island. Maybe Dayville's?

The one in New Britain near Westfarms Mall was a Greatland.

[roadman65]

Super Target was dropped in some places as well but the grocery store still remained.  Heck even the name Super Center Walmarts are just plain Walmarts now.

[DeaconG]

There are countless legitimate reasons to close stores, even profitable ones. Simply blurting out "it could be fraud" is pretty weak without any corresponding evidence.

Misleading shareholders is fraud.

If you Google 'Kmart misleading investors', you'll find a multitude of stories. Except....they're all from 2005 or so, where the PREVIOUS CEO had mislead investors.

The current CEO has been fairly straightforward with the investors, issuing reports of serious doubt the chains can continue to operate. There doesn't appear to any misleading going on there.

Lambert actually acknowledging the company may not survive is a relatively recent phenomena.  Previously, he'd pretend that he was taking measures to make the stores profitable again while doing everything he could to run the company into the ground so he could sell the real estate.

Thank you. Eddie Lampert is a hedge fund manager who is only running the stores because he couldn't unload the property after the commercial real estate implosion in 2007. I wish the retail-worker.com site was still around, it had a HUGE Sears Holdings board and the stories they told would make you scream.

No CapEx in the stores (which is why they looked so dated). Not only screwing the commissioned salesperson out of their commission by taking away their spiffs but by changing their rate so that it was more profitable to sell the Protection Plans than actually selling the product. The multiple screwups when someone actually tried to use their Protection Plans and stumbled multiple times (not showing up on the days they were supposed to then blaming the owner for not being there, not having the parts to fix it when they did show up and oh by the way "would you like to get a better Protection Plan?").

Pissing off their spokespeople to the point where they walked (Ty Pennington and Bob Vila from This Old House walked away from Sears when they tried to screw them), then attempting to sue Martha Stewart and having that 'Original Gangster' take his head off in court.

Spinning off the Craftsman and Kenmore names into their own company in order to generate revenue (when I saw this I thought he'd lost his mind), then refusing to hire anyone who, you know, actually knew retail operations and wouldn't let them do anything when they did get a job with them. He brought in a President of the company who came from Darden Restaurants to try to run the company and for two years Eddie tied his hands behind his back, then this man left (his name was Aylwin Lewis) to go to YUM Brands and took them out of bankruptcy to make them a billion dollar company in five years. Meanwhile, that position stayed vacant for seven years because NO ONE wanted to deal with Eddie.

Did I forget to mention two posters on the Retail Worker forum that worked for Sears as a husband and wife who went to one of Eddie's shareholder meetings and asked him some calm, well-phrased pointed questions about where he was taking the company (solicited from the forum) and within two weeks both of them were FIRED? ON THE SAME DAY? Gee, after over 15 years for the both of them that's kinda odd, ya think?

Oh no, screw Eddie. And if you're damn fool enough to put money into his investment firm, you deserve everything you get.

[AlexandriaVA]

All of that may be true, but that's up to the shareholders/Board to decide. It's not illegal to liquidate/ruin a company.