Kmart to buy Sears

[DenverChief]

Color me suprised I thought Kmart was on its way down and out of the retail business

DES MOINES, Iowa - Wal-Mart Stores Inc. is widely referred to among its suppliers as the 800-pound gorilla. What the giant retailer wants, it usually gets.

Now, many manufacturers must be wondering whether Kmart Holding Corp.'s pending acquisition of Sears, Roebuck & Co. will create a second behemoth that demands lower prices for their goods or, worse, drops them altogether.

In announcing their marriage intentions Wednesday, the two retailers said they expect to save $300 million a year through "improved merchandising and non-merchandising, purchasing scale as well as improved supply chain, administrative and other operational efficiencies."

For suppliers, the key words are "purchasing scale" and "improved supply chain." Those goals might translate into such buying power that to retain Sears/Kmart's business, manufacturers may be forced to go overseas to make products at a profit.

"When they say they need a $49 price point for an electric drill, people have to come up with ways to do it," said Bill Drumm, president of Establish/Herbert W. Davis, a supply-chain consultant in Fort Lee, N.J. Significant U.S. manufacturing went offshore in order to meet the prices that Wal-Mart dictated, he said.

Moreover, whereas several companies may be making drills for Sears and Kmart now, in the future the combined company may seek a single source.

"Say today Sears has three suppliers of (something) and Kmart has three. Combining them you don't get six," Drumm said. "If I was No. 4 or 5, I would be concerned. If I was one of the top three I'd be thrilled."

Indeed, Sears' biggest supplier of major appliances, Whirlpool Corp., believes the merger "will be a plus for us, absolutely," said spokesman Steve Duthie.

He expects Sears will convert more Kmarts into Sears outlets, which means more locations where customers can buy Kenmore washers, driers and other appliances that Whirlpool makes under Sears' house brand.

Asked whether Whirlpool expects the combined retailer to exact cheaper prices from it, Duthie replied, "We don't foresee that at all." He noted that Whirlpool has announced plans to increase its prices to retailers between 5 percent and 10 percent next year to reflect higher costs of steel and other raw materials.

Sears now buys from more than 10,000 suppliers. The number of Kmart suppliers — and their overlap with Sears — couldn't be determined.

http://news.yahoo.com/news?tmpl=stor...rs_suppliers_1

[DenverChief]

Originally Posted by KCWolfman

KMart doesn't sell a line of groceries - only a few items.

WalMart and Target already offer such services together.

uh yes they do


Super Kmart Centers offer Kmart a long-term vehicle for growth. These stores present the ultimate shopping experience, combining a full assortment of fresh groceries with a broad selection of general merchandise found at traditional Kmart and Big Kmart stores.
http://www.kmartcorp.com/corp/invest...tbk_1998/7.stm

[Demonpenz]

Remember there was a thread about it. Someone was going to do something risky with their money and another person said "You could put it in Kmart, it would be just ask risky."

[Soupnazi]

Originally Posted by Brock Landers

I missed the boat big time. Didn't notice till it was at 45.

Hell, I'll take a 100+% gain in a year any old day.

[Brock]

Originally Posted by KCWolfman

That is still more than double today.

fuck you very much.

[Demonpenz]

Kmart Big sell groceries

[KCWolfman]

Originally Posted by DenverChief

uh yes they do



http://www.kmartcorp.com/corp/invest...tbk_1998/7.stm

You realize your link also shows they already sell powertools as well?

And they have always carried Craftsmen.

[KCWolfman]

Originally Posted by Demonpenz

Remember there was a thread about it. Someone was going to do something risky with their money and another person said "You could put it in Kmart, it would be just ask risky."

Yeah, I brought it back up when my stock capped over 70, but cannot do so again now until the search feature is fixed.

[Demonpenz]

There is a difference between the super K and the regular kmarts. Super K's have always sold power tools since i think 97

[PastorMikH]

Have a guy in the church that is a assistant manager at the local KMart. He's filled me in on a lot. They have actually been doing rather well and making a comeback since selling the stores that were losing money. He told me about this possible merger a few months back. He said it was speculation and they didn't know for sure at the time if it would go through or not. Said that if it did go through it could open up the Craftsman and Kenmore lines to be sold in the local Kmart and some of the clothing lines in Kmart to be seen also in Sears. He mentioned several other things but those were the ones I seem to remember.

[Demonpenz]

Originally Posted by KCWolfman

Yeah, I brought it back up when my stock capped over 70, but cannot do so again now until the search feature is fixed.

Buy low sell high. When Kmart switched their entire executives board and redid their long term buisness plan, I thought to myself "Well it can't go as bad as it has the last couple years.

[KCWolfman]

Originally Posted by Demonpenz

There is a difference between the super K and the regular kmarts. Super K's have always sold power tools since i think 97

Regular ones sell powertools as well. My Mom-in-law is a manager and I get a tidy discount on my sabersaws, blades, routers, bits, sawzalls, and drills I get there all the time.

[Slayer Diablo]

DAMNIT!!!

I bought 200 shares in a class project when they were worth less than a penny and sold them when they didn't move....

[Lzen]

Wow, you guys should cut DC a little slack. Heck, I was not aware that Kmart was doing well now. All I know is that they closed one store in my city and the other 2 are always pretty close to empty. Not to mention that Walmart is opening a 3rd store and it doesn't look good for Kfart here. But wow, that seems like a good deal to me. Perhaps it will help to keep Walmart from someday becoming the 800lb gorilla that doesn't have any competition so they charge high prices. Competition is always a good thing.

[Deberg_1990]

Originally Posted by Lzen

Wow, you guys should cut DC a little slack. Heck, I was not aware that Kmart was doing well now. All I know is that they closed one store in my city and the other 2 are always pretty close to empty. Not to mention that Walmart is opening a 3rd store and it doesn't look good for Kfart here. But wow, that seems like a good deal to me. Perhaps it will help to keep Walmart from someday becoming the 800lb gorilla that doesn't have any competition so they charge high prices. Competition is always a good thing.

Agreed....Kmart staying in business is in all of our best interests. They help to keep Wal-Mart Honest......Although, I dont care much for either place. They are both "ghetto" to me. Target is what I like.

[Demonpenz]

the target in springfield is the most ghetto thing i have ever seen