Despite the litany of missteps, mistakes, and poor decisions, can Kmart get beyond its history? The general consensus is yes, but with a few caveats. “I think any company can be saved, ” says Wharton's Professor Pete Fader. “Part of it is realizing what they are good at and what they are not good at.”
Despite emerging from bankruptcy in May 2003, after securing $2 billion in exit financing, to help the company proceed towards its goal of profitability, here are 10 recommendations for getting back on track.
“The only way Kmart can stage a comeback is to scale back more than they have, ” says Professor Don B. Bradley III of the University of Central Arkansas. “They have to go back to where they're profitable and get out of the areas where they're not profitable.” This may mean retrenching and regrouping as a regional competitor first, says Bradley, rather than a national presence. “They should be in the regions where they're strong and can logistically handle what they need. I don't think they have the money and the capital intensity to be a national power anymore.”
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Publication information: Book title: Kmart's Ten Deadly Sins: How Incompetence Tainted an American Icon. Contributors: Marcia Layton Turner - Author. Publisher: Wiley. Place of publication: Hoboken, NJ. Publication year: 2003. Page number: 227.
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