Mistakes I can list;

 

1. Charging extra for Lay-a-way (should be a service not a screw job)

 

2. Limited staffing (Wal-mart always has at least 2 people per dept. on most shifts)

 

3. Updated product - K-mart always seems to be a wave behind in TF's and thier clothing is like from 1997

 

4. No price competitive (both Wal-mart and Target have Price compers that go out and price other retailers)

 

7. Poor product return policy (I could take a supernintendo back to Wal-mart today and tell them it's broke and I need money back, no hastle no nothing. K-mart wants your thumb print in blood on the original reciept (that must be no older than 30 days ) and still you have to plead with them to take broken items back)

 

I am a business major so I think I know what I am talking about.

 

1. They charge extra because they have no money so by charging extra, they get more operating revenue, so they can take that money and buy stuff with. Its kinda like banks. Do you think you have that $1000 in your savings account just sitting there? NO, the bank is using it to pay bills, make more banks, etc. But if you withdrawl it, they will give it to you, but how often do you withdrawl from savings?

 

2. The limited staffing is due to no money. They cannot afford to pay people. The 2nd biggest expense for a company is staff. That is why you always hear about cutting jobs and stuff when a company is filing for bankruptcy or cutting expense.

 

3. Their products are not up to date because their old inventory has not sold. This is because their stuff ususally cost more then Walmart so it sits there. Therefore, if they had not sold the old stuff, they don't have money to buy NEW stuff. They only buy more inventory, when old inventory has sold.

 

4. Usually Kmart has been in a disadvantage in price competition. This is because they have weaker buy power compared to that of Walmart and Target. Companies and Manufacturers will sell you stuff at a lower price per unit if you buy ALOT. Walmart can do this, because, they have 3500 stores, they have money. Walmarts says, I will pay $3 for each deluxe transformer, but I will buy 1 million of them. Even though Hasbro maybe makes 50 cents off of each figure from walmart, think 50 cent X 1million. Alot of manufactures are dependent on Walmart and sell their products at whatever price Walmart is willing to pay. This is because making a quater off each toaster off walmart is better than not sell at all and they Walmart has 3500 stores. 3500 and 20 toasters at each store. That is 70,000 toasters X 25 cents profit each. That is $17,500 in profit. Kmart cannot do this with there 350 stores and no money to buy in mass quantity. Therefore, Kmarts costs are more, so they charge you more for stuff.

 

7. Walmart can afford to take back your sega genesis because they can eat the cost since they make so much profit. Walmart knows you are ripping them off but takes your crap so you will continue to shop there. Kmart cannot eat the cost of u cheating them so they don't do it.

 

And I don't think Target will merge with TRU b/c they are in a completely different segment, where Target sells mainstream everything items and TRU only sells toys.

 

Just my 3 cents. :wave

I am a business major so I think I know what I am talking about.

Ok, never start a post like that, it just pisses people off (not me)

it sounds pretentious, it would be like me saying

 

I am a Software Engineer by trade with a minors in international business and engrish. I am also working on an MBA in e-Commerce, so this is my take:

 

see it sounds obnoxious, but you had great points

 

edit: I mispelled english on purpose to show my disdain for it.

Ok, never start a post like that, it just pisses people off (not me)

it sounds pretentious,

 

Sorry, didn't mean to. :roll But as I was reading these posts, I grew more fustrated as to how little ppl understand about business so I thought I had to clear a few things up since it is obvious that some ppl don't understand the business world at all.

Ok, never start a post like that, it just pisses people off (not me)

it sounds pretentious,

 

Sorry, didn't mean to. :roll But as I was reading these posts, I grew more fustrated as to how little ppl understand about business so I thought I had to clear a few things up since it is obvious that some ppl don't understand the business world at all.

I hear you on that ... my undergrad degree is econ with particular focus in international and trade ... but more than anything I have a B.S. in Common Sense.

 

Now this K-Mart layaway thing I'm not so sure about. As long as I've known, I've never heard of K-Mart having a layaway fee. My brother used to be a manager at one so I'd like to think I'm close enough to the situation to know what I'm talking about. Then again, it could be something recent, and would be very understandable given that many layaway holdings end up not being purchased ... especially for a company trying to emerge from bankruptcy.

 

I worked at a Wal-Mart one summer in high school ... there was one associate on during any shift per department, except for the garden center. My mom works for the corporate office so I can ask her if it's ever done differently, but I'd be surprised. And even if it was, 1 K-Mart floor employee is smarter than 2 Wal-Mart floor employees combined.

 

K-Mart does "shop" their competition, but as Tarzan said they are running smaller staffs so it isn't always practical.

 

And I've never had any problem taking anything back to K-Mart, receipt or not. Speaking of Wal-Mart's return policy ... these days if you don't have a receipt they're supposed to credit you the amount to a Wal-Mart gift card, therefore keeping the money within the company.

Ok, never start a post like that, it just pisses people off (not me)

it sounds pretentious,

 

Sorry, didn't mean to. :roll But as I was reading these posts, I grew more fustrated as to how little ppl understand about business so I thought I had to clear a few things up since it is obvious that some ppl don't understand the business world at all.

 

:lol everybody who goes to college majors in business it seems :roll

 

And college guy guess what, i'm a business manager for a company that makes over 4 million profit annually and that's not an INTERNET statement. :P

 

the differences between a degree and knowledge in RETAIL MANAGEMENT is vast. So frustrated or no take a listen;

 

You're points were 100% correct, but what you don't realize is; Customers do not care if K-mart is having money problems, :wtf they only want good service at low prices. They don't care if K-mart has to support more staff they want people in the store to help them and they want the prices that beat the compitition. Have any of you ever been into a Big K as compared to a Super Wal-mart? They're only about half the size and don't carry enough products to make it the "One Stop Shop" that Wallycron is.

 

Now this K-Mart layaway thing I'm not so sure about. As long as I've known, I've never heard of K-Mart having a layaway fee. My brother used to be a manager at one so I'd like to think I'm close enough to the situation to know what I'm talking about. Then again, it could be something recent, and would be very understandable given that many layaway holdings end up not being purchased ... especially for a company trying to emerge from bankruptcy.

 

Everybody has a family/friend working somewhere don't they? Well my experience stems from being and adult in the real world having to shop for little kids on christmas and birthdays. Guess what? Lay-a-way at all of my local K-marts carries with it a $10 fee. Wal-mart? $0

 

I worked at a Wal-Mart one summer in high school ... there was one associate on during any shift per department, except for the garden center. My mom works for the corporate office so I can ask her if it's ever done differently, but I'd be surprised. And even if it was, 1 K-Mart floor employee is smarter than 2 Wal-Mart floor employees combined.

Supercenter or GM store? Do you know what those terms mean? I worked at the top grossing Wal-mart in the nation for 4 years (FL) and that store and the 6 others (all within a 50 radius of each other :wtf) are highly staffed. As far as K-mart employees being worth more than Wal-mart ones, how do you figure? They hire from the same work pool (lower class/students/retirees) and offer no special training of anykind.

 

K-Mart does "shop" their competition, but as Tarzan said they are running smaller staffs so it isn't always practical.

 

If you can't match the compitition or beat them you're outta business, that makes it practical.

 

And I've never had any problem taking anything back to K-Mart, receipt or not. Speaking of Wal-Mart's return policy ... these days if you don't have a receipt they're supposed to credit you the amount to a Wal-Mart gift card, therefore keeping the money within the company

 

The Wal-mart of that is true if you don't have a reciept. But at least you still have the option to return something if you didn't save the reciept. K-mart will take nothing back without a reciept...period. (it's posted on thier little "return policy" plaque on the customer service counter)

 

Now i'm not frustrated in the slightest at you guys for throwing in you 3.5 cents on the subject, but a word to the wise, no who your talking to and find out if maybe they have some experience in the area being discussed before tossing your third year college education around :thumb

an P.S. you took a super fun conversation about K-mart and turned into a "nanny nanny boo boo" thread

Wal-Mart is the mastah of distribution; that's how they can compete on price. K-Mart's distribution chain has nothin' on Wal-Mart, so price competition is almost impossible (main reason K-Mart filed for backruptcy). Target doesn't really try to compete w/ Wal-Mart on price; that's how they succeed. The atmosphere at Target is much different than Wal-mart. That's how Target can justify charging a little more for certain products. K-Mart got stuck in the middle; they couldn't compete w/ Wal-Mart on price or Target on the "shopping experience". I think Sears/K-Mart will end up competing more w/ Target than Wal-Mart.

 

Oh yeah, I'm in an MBA program, so I've got the street cred to back this up... :P

and you know what else really pisses me off? Is this damn indignation towards wal-mart, without which your collections would be practicallly empty! While it sucks that they put local "mom and pop" stores out of business,thier prices are unbeatable! No other retailer sells Transformers for as low a price as Wal-mart, and what thanks does that get them "Wal-mart sucks" blah blah blah!

 

Believe me, nothing creates animosity for a company like working for them (as stated earlier i did just that) and I would never work for them again. But i will always consider wal-mart for my purchasing needs above all other retailers for several reasons

 

well stocked shelves

great prices

and freindly service

and you know what else really pisses me off? Is this damn indignation towards wal-mart, without which your collections would be practicallly empty! While it sucks that they put local "mom and pop" stores out of business,thier prices are unbeatable! No other retailer sells Transformers for as low a price as Wal-mart, and what thanks does that get them "Wal-mart sucks" blah blah blah!

 

Believe me, nothing creates animosity for a company like working for them (as stated earlier i did just that) and I would never work for them again. But i will always consider wal-mart for my purchasing needs above all other retailers for several reasons

 

well stocked shelves

great prices

and freindly service

Wal-Mart never did crap for me. Target has come through for me many times, though.

 

And I know this because I have a college degree in philosophy and religion.

And I know this because I have a college degree in philosophy and religion.

 

LOL :tflaugh