Former top retailer Kmart is dangerously close to disappearing, with only a handful of stores left in the U.S. What’s the massive business lesson entrepreneurs need to learn from this?
In just a few days, on April 16, yet another Kmart will shut its doors for good.
After this New Jersey store closes, Kmart will have only 3 locations left in the United States.
For decades, the big box department store chain was a national retail leader and go-to shopping spot for millions of Americans. Back in the ’90s, for example, the massive brand employed 350,000 individuals and operated successful stores across the country.
However, there’s been a slow but steady decline that resulted in the disappearance of more than 2,300 locations in recent years.
Now, what once was an American retail giant is 3 steps away from commercial extinction. And multiple factors have led to this point.
Why is Kmart dying out?
Some of the major reasons why the company will soon vanish from the market are:
- Terrible investments — and a complete lack of them in the right areas
- Failure to adapt and scale
- Losing business strategy
While most retailers evolved throughout the years, Kmart never committed to investing in up-and-coming technology. Instead, the company made a series of poor investment choices in brands like Sports Authority and Borders books.
Where are these companies nowadays? You guessed it. Extinct.
Kmart didn’t make the right tech investments, and their customers opted for shopping online — with their direct competitors.
Amazon now dominates the whole space, while Walmart focuses on super low prices and Target on stylish appeal to remain relevant.
How can business owners avoid this?
Look, as an entrepreneur, you need to be 100% committed to your business’ success.
That means constantly investing to multiply earnings.
Don’t make the same mistakes as dying brands like Kmart, Blockbusters, and Toys R Us.
Devote your efforts to keeping up with your target audience, providing massive value, and investing the smart way.
What are you doing to invest in your company today? Drop your commitment in the comments to hold yourself accountable 👇
Featured image source: daveynin, CC BY 2.0, via Wikimedia Commons
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The same thing will likely happen to JC Penney. They have refused to modernize and move along with the trends and they have lost who their target market is.
and if it is not already studied in B-schools, it will be: K-mart killed SEARS as well.
If I recall correctly, K-mart was in trouble, refinancing/ restructuring yet again–bankrupt, recapitalized and formed as a Holding company that was already traded; and Sears was looking to get out of malls to go free-standing a la WallyWorld. Sears bought a significant amount of real estate from the holding company, this major infusion of cash caused their stock to soar and with their new capital position they then bought Sears out WITH SEARS’ MONEY essentially, and proceeded to run them into the ground. Horrible decision makers infected and killed more than just their own nest…