It comes as no surprise to myself and my peers that
Kmart has failed, and none of us have
business degrees. We realize that it failed simply because no one wants to shop at a Kmart anymore. Here's why:
Kmart does not effectively advertise
Wal-Mart and Target both have well designed advertising campaigns that are pushed heavily here in the south. These campaigns are very effective, creating in our minds that these two stores are places you want to spend your money. The advertising put on by Kmart is seen (by us) much less frequently on television and in print, is less catchy, and lacks the flash and polish put on by their competitors.
Kmart has carried the Martha Stewart line of products for a long time, but when was the last time I heard about it? Oh, probably never. I might have read a CNN press release that mentioned Martha's line of goods sold in Kmart stores, but the Kmart guys sure didn't push hard enough for it to stick in my mind.
Kmart does not stock as many things as their competitors
One reason I don't bother to go to Kmart anymore is because I may not find what I'm looking for. If I go to Wal-Mart or Target, I am virtually guaranteed to find the items (and brand names) that I want. I don't like having to go from store to store to store to get everything I need.
Kmart does not cater to the "grocery store in a store" paradigm
At least not here. Most of my friends and co-workers have grown accustomed to buying household goods, groceries and other items during a trip to a single store. This is a paradigm that I believe has grown into a "weekly trip to the store" where people buy most of their necessities. Wal-Mart and Target make this possible (Wal-Mart more effectively so than Target with their Wal-Mart Supercenter meccas found on every city block). Kmart, well, forget it.
Kmart is absolutely filthy
The inside of a Target store is spotless. It is absolutely spic-and-span. You feel like you're shopping in a clean and safe environment. Wal-Mart is generally not as well-groomed as Target, but still passably so. Both stores keep their goods stocked, organize them well, and keep the aisles clean and tidy.
The inside of every Kmart I've ever been to looks like it was hit by a tornado. Items seem tossed everywhere, things are unorganized and merchandise that is moved around by a customer doesn't get quickly straightened by the store employees. The inside of Kmarts are also less pleasing to the eye and dirtier. I don't want to shop in a place like that when I can just go across the street to Target.
Kmart is a ghost town
The unpleasantness of shopping at Kmart has led to fewer customers. Lately, if I go to a Kmart, there are only a handful of other customers in the store. This reinforces the feel that Kmart is lame and that I ought to be shopping somewhere else.
The bottom line
Kmart needs to change their business model to come more closely in line with that of their biggest competitors. Once they can make their stores a place where people want to shop, they will climb back out of this hole they've made for themselves.