Kmart Corporation
The Kmart Corporation isretailer basedTroy, Michigan. It operates mainly inUnited StatesAustralia. It formerly operatedCanada before giving wayZellers.It was originally founded as S.S. Kresge Corporation1899 by Sebastian S. KresgeDetroit, Michigan. The first store wasfive-and-ten-cent store similarthose operated by Frank Woolworth. The store grew intochain known as S. Kresge. By 1912,chain was operating 85 stores.
By1920s, Kresge was operating larger stores that offeredwider varietymerchandiseprices, which were precursors ofmodern discount store. The first Kmart department store opened1962Garden City, Michigan. A total18 Kmart stores opened that year.
Kmart was knownits "blue light specials": at surprise moments, a store worker would light upmobile police lightofferdiscount atpart ofstore. During1970s, Kmart putnumbercompeting retailers outbusiness.
In 1977, S. S. Kresge Corporation changed its nameKmart Corporation. In 1987, Kmart Corporation sold its remaining Kresge stores.
In1990s, Kmart underwentnumbermissteps. Unlike competitor Wal-Mart,failedinvestcomputer technologymanage its supply chain. Furthermore, Kmart has been faultedcontinuingmaintainhigh dividend which reducedamountmoney availableimproving its stores. Many business analysts also faultcorporationfailingcreatecoherent brand image. It was attemptingcompeteWal-Mart on price atsame time tryingmove upscalelines offered by Martha StewartJaclyn Smith.
The stock scandalsMartha Stewart severely hurtcorporation's image. In addition, Kmart attemptedcompete against Wal-Mart on price, which failed because Wal-Mart was ablemeetbeat Kmart's price cuts.
On January 22, 2002,filedbankruptcy protection. It shut down more than 300 stores nationwidelaid off around 34,000 workers as part ofbadly-needed restructuring measure. On May 6, 2003, Kmart officially emerged from bankrupcty protection as Kmart Holding Corporationon June 10, 2003began trading onNASDAQ National Market.
