Kmart/Sears Case Analysis Essay

1259 Words6 Pages
In 1897 Sebastian Spering Kresge opened five-dime stores in Memphis and Detroit with John McCrorey as his partner. Two years later the partnership broke up and each person kept one city. Mr. Kresge kept the Detroit store and began expanding from there onward. In 1912 the company became incorporated as S.S. Kresge and was the 2nd largest dime store chain with 85 stores and annual sales of more than $10 million. In 1918 S.S Kresge was listed on the New York Stock Exchange. Throughout the decades, Kresge rapidly expanded eventually opening the first Kmart store in 1962 in Garden City, Michigan. By 1966 there were more 160 Kmart stores in the US and Canada. In 1968 Kmart began airing TV commercials. In the 1970s, Kmart continued to expand…show more content…
The Home Depot bought more than 18 stores and Sears bought 45 for about $524 million. In that same year, Kmart Holding Corporation completed transactions to become a part of Sears, Roebuck and Company now known as Sears Holdings Corporation. Sears Holdings is listed on the NASDAQ under the ticker symbol SHLD. As of 2004 Kmart had 1,422 discount stores, 58 Kmart Supercenters totaling 1,480 stores. 1,323 of those stores were leased and 157 are company owned. Following the takeover, about 400 of Kmart's nearly 1,500 stores will be converted to Sears's outlets over the next three years. Ever since the takeover, Kmart has seen a steady rise in net income from a negative $2418 million in 2002 to a positive $1106 million in 2005. At this time, it may not seem like a lot compared to their top competitors, Wal-Mart which had a net income of $6671 million in 2003 and $10267 million in 2005 and Target with their $1368 million in 2003 and their $3198 million in 2005. From 2002 to 2005 Kmart saw a steady decline in annual sales. They went from $36151 million to $19701 million between those years. Their competitors on the other hand had major growth in annual sales. Wal-Mart went from $217799 in 2002 to $285222 in 2005. Target saw a rise in annual sales from $39888 in 2002 to $48163 in 2004 and a decline of $1324 in 2005 making it $46839. In
Open Document