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Thursday, November 18, 2004

Sears/Kmart merger

I had no idea the extent of KMart's troubles until I read this article. Take a look at this excerpt:

Accustomed to the uncertainty that has dominated their jobs in recent years, local Kmart workers seemed almost relieved by Wednesday's announcement of a merger with Sears, Roebuck and Co. "Hearing they're merging with Sears sounds a little bit more stable," said an employee at Kmart's Belsay Road store in Burton.
...
"You're going to certainly see Kmart stores converted to Sears. I think the Sears name is the opportunity," said Gary Ruffing, senior director of retail consulting at turnaround firm BBK Ltd. in Southfield.

What's most disturbing is that Kmart people actually think Sears will give them more stability. Don't get me wrong...I love Sears. They have been around as long as I can remember, and they support the troops in Iraq. But does anyone really shop at Sears anymore? I normally see them as anchor stores at malls...but recent trends have shown decreased mall traffic. What will really be interesting is if you start seeing Sears stores replacing Kmarts. If Sears does it right, Wal-Mart may actually get some healthy competition.