The financial Analysis of Big Kmart

The financial Analysis of Big Kmart

Introduction

Big Kmart, Kmart or previously remembered as K-Mart, comprises of string of discount stores that are operating from most of the European countries, Australia, and its headquartered is situated in USA. Recently in the year, 2005 Kmart purchased the shares of Sears Company and it resulted in the corporation of Sears holding corporation (Muller & Brady 2000).

Initially the store was founded in year 1962, and is considered as the third largest chain of discount store behind Wal-Mart Inc and Target and of January 29 2012 Kmart was operating in more that 1310 stores that are spread across 49 States of Western Countries. Whereas, among 1400 stores, it includes1280 discount stores, 30 super centres.

Kmart stores became famous mainly due to “Blue light Specials effects” that were installed to surprise the customer. Customers witnessed this effect when a storekeeper switches on the police mobile light in specific department to offer a discount option. Moreover, at the peak of its popularity the phrase of Kmart and several of its stores were utilized during the filming of films like Six days and seven nights, and Dawn of the dead.

Before the incorporation with Sears, the headquartered of the company was situated in Troy, but after the partnership, it is currently located in Hoffman Estates of USA. In addition to this, a person tend to become confuse and has started making connection with the Kmart stores that are running in New Zealand and Australia, hence, to clarify there is no connection except of same name between Kmart of Australian and New Zealand, with Kmart of USA (Lehavy & Udpa, 2011).

Discussion

History of Kmart

History of this company is rooted in start of Twentieth century, as in the year 1900s Sebastian S. Kresge in 1914 founded the headquartered of his Company S.S Kresge that after decade become Kmart. Further, on May 23 1918, this company was able to register itself in NYSE, whereas, during the early century company witnessed brisk growth and was able to expand its stores up to 597 by the end of 1929. However, the steady growth faced a little decline during the period of depression that resulted in closing of several stores and reduction in profitability (Muller & Brady 2000).

Whereas after the war the stores of the company witnessed unexpected change in the behavior of the customer, as most of his loyal customers had migrated and in order to retain them the company adopted the strategy of merger and acquisition with several urban stores. However, because of this company has to close several of its stores and by the end of 1954 there were only 616 stores operational in USA (Turner, 2003).

Use of Kmart food Logo

However, after few years under the supervision and effective leadership of Cunningham, this company opened first Kmart super store in 1962, in Garden city of USA. Just after the inauguration of Wal-Mart, further, because of his effective and sound policies by the end of 1970, Kmart has ended the operation of ...