Abstract

The case details the journey of US-based retailing company Kmart from being an integral, successful part of the country's corporate history to bankruptcy in 2002. The company's origins and its evolution into a retailing giant over the decades have been traced. The reasons for its poor performance vis-à-vis rivals Wal-Mart and Target have also been explored. The case takes a look at the restructuring moves taken during CEO Conaway's tenure and examines the reasons for the failure of the same. The case also takes a look at Kmart's reorganization plans and its efforts to emerge from bankruptcy during 2002-03. Finally, the case discusses Kmart's future prospects in light of its changed strategic game plan and the various problems that still persist.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Business failure
• competition
• positioning
• operational efficiency.

Keywords

US, retailing, Kmart, integral, successful, corporate history, bankruptcy, 2002, retailing giant, Wal-Mart, Target, restructuring, CEO, Conaway, Kmart, reorganization, bankruptcy, 2002-03, Kmart, strategic game