The Evolution of Kmart’s Business Strategy: From Discount Retailer to Innovation Leader

The Evolution of Kmart’s Business Strategy: From Discount Retailer to Innovation Leader

The retail industry has gone through drastic changes in the past few decades. One company that has been successful in adapting to these changes is Kmart. Kmart started as a discount store in the 1960s and has since evolved into an innovation leader. Let’s take a closer look at the transformation of Kmart’s business strategy.

The Beginning

Kmart was founded in 1962 and quickly became a popular discount store. Their business model was simple – offer products at a lower price than their competitors. Kmart was successful in this space and quickly grew to have hundreds of stores across the United States.

Transition to a Big Box Store

In the 1980s, Kmart saw an opportunity to expand their business by moving away from their traditional discount store model. They began opening big box stores which allowed them to offer a wider range of products. These stores were much larger than their traditional stores and offered everything from groceries to electronics.

The Struggle

Despite the success of the big box stores, Kmart began to struggle in the early 2000s. They were facing tough competition from other retailers like Walmart and Target. Kmart was stuck in a rut, and they needed to find a way to compete.

The Turnaround

In 2003, Kmart filed for bankruptcy. This was a turning point for the company. They knew they needed to make changes if they were going to survive. That same year, Kmart merged with Sears. The merger allowed them to expand their product range even further.

The Innovation

In recent years, Kmart has made significant strides in innovation. They have invested in technology to improve their customers’ shopping experiences, such as self-checkout and mobile apps. Kmart has also partnered with celebrities and influencers to create exclusive product lines. In 2017, Kmart launched an augmented reality app that allows customers to virtually preview furniture in their homes before making a purchase.

Conclusion

Kmart has come a long way since its humble beginnings as a discount store. Their willingness to adapt to changing market demands has allowed them to compete in an ever-changing retail environment. By investing in technology and innovation, Kmart has positioned themselves as a leader in the industry. The evolution of Kmart’s business strategy is a lesson in resilience and adaptation that can be applicable to businesses across industries.