Parent company responds to rumors that it plans to shut down the Kmart brand.
Last month, a Business Insider article asserted that employees at Kmart stores nationwide were under the impression that the company was on the verge of bankruptcy and would be shuttering all of its stores. The article cited new strategies for backroom inventory and reduction in staffing as clear evidence of such an outcome.
In a recent blog post, parent company Sears Holdings Corp. sought to assure shoppers that the discount chain remains open for business. The blog post, written by Alasdair James, president and chief member officer for Kmart and Gareth Glynne, head of Kmart Retails, clarified that the inventory-clearing process detailed by Business Insider is not a liquidation effort but “a phased project that gets our newly-delivered products on the stores’ shelves immediately rather than in the stock rooms and ensuring that the [customer] does not wait in line at the checkout,” Alasdair James, president and chief member officer for Kmart, and Gareth Glynne, head of Kmart Retail.
In fact, the post asserted, over the past year, Kmart has relaunched its brand, resurrected Bluelight specials, and “started to make shopping fun again,” which should indicate that the brand is not going anywhere anytime soon. The retailer also has hosted special events for shoppers and Shop Your Way members and rolled out a new 2016 summer and fall collection. As the blog post sates, “We’re focused on giving our members a ‘WOW’ experience and this change is helping our stores operate more efficiently.”
Further, James and Glynne assure, “Sears Holdings is highly focused on restoring profitability to the company and Kmart remains a key part of our asset portfolio. We’re proud of our associates for the work they do each and every day to help us continually improve and serve our members.”
As Fortune reported, Kmart’s slipping sales and closure of hundreds of stores over the past years gives some credence to the suggestion that perhaps it was headed for pasture. The retailer remains on a number of analysts’ bankruptcy watches. But, as the Sear’s blog post states, it’s not headed there quite yet.
