Over the past year, I've actually been accused
of being anti-Kmart. That fact was pointed out to me, in a light-hearted
way, by a few friends, family members, associates, and even a couple of
clients. This observation seems to have developed from various comments I've
made about the troubled retailer during keynote presentations across the
country or in articles I've written from time to time. Truth be known, the
absolute opposite is true.
I've been a life-long fan of Kmart ... possibly one of their top ten fans
of all time. I bought my first kite with my allowance money at Kmart when
the stores were know as S.S. Kresge Stores and everyone called them Five and
Dime Stores. Can you believe that?
My beloved grandfather took me to the Grand Opening of the world's first
Kmart Store in Garden City, Michigan in 1962. I remember it like it was
yesterday. I walked into the largest, brightest, most beautiful retail store
I had ever seen. I couldn't believe how clean and neat everything looked ...
almost antiseptic. The floors were spotless and merchandise was aligned
perfectly on every shelf. Smiling cashiers adorned in bright red fashion
smocks sported classic name tags that could be read easily at 10 paces.
Store personnel appeared both knowledgeable and polite ... a rarity in
today's marketplace. "Attention, Kmart Shoppers" preceded numerous alerts
directing us to the most current "Blue Light Specials." Enthusiastic
cashiers sent us on our way with a cheerful TYFSAK ("Thank You For Shopping
At Kmart.") I was quite certain than I had died and been instantly
transported to Disney World! I can visualize that experience as though it
were yesterday.
In addition to these vivid recollections, I've always taken pride in the
fact that Kmart originated in my home state of Michigan and has always
maintained its corporate headquarters in the metropolitan Detroit area. I share these fond
memories to illustrate my devotion to this once powerful retail giant ... a
far cry from being anti-Kmart.
What has recently been mistaken as anti-Kmart remarks on my part was
actually nothing more than a simple reflection of the outrage I feel for a
lackluster leadership team that has allowed one of the world's top retailers
to be reduced to cheap fodder for editorial cartoonists and late-night talk
show hosts. Bankruptcy, store closings, massive lay-offs, outrageously
compensated leaders, filthy stores, horrendous customer service, and
cancerous out-of-stock conditions ... these aren't individual opinions,
they're actual conditions observed by authorities from Wall Street,
government agencies, national media, and consumers world wide. To me, this
is inexcusable and unforgivable. I'm somewhat certain that Sebastion
Sperling Kresge is spinning in his grave!
To add insult to injury, those in command of this floundering icon, have
apparently learned nothing from the demise and/or struggles of other retail
giants like Montgomery Wards, Service Merchandise, and many other regional
giants. They continue to mistake common sense and accepted practice for
giant strides on their part. For instance, let me share two short paragraphs
I read in a recent issue of USA Today. The main headline read: "Kmart
predicts ‘03 rebound." The sub-title read: "Promotions pay off." These
headlines were followed by rhetoric any sane Spin Doctor would avoid like
the plague! I had to read it several times and still felt as though I should
check the calendar to see if it was April 1st (April Fool's Day)! It read as
follows:
Kmart predicts ‘03 rebound
Promotions pay off
Kmart Corp. on Monday said its same store sales improved because of
aggressive new promotions. They include:
The "Have to Have It" promise in Detroit and Chicago gave
customers in-stock and price guarantees on certain items in Kmart's
circulars. Store traffic, particularly in Detroit, showed a
significant improvement.
A pilot program in Chicago to keep the top 300 items in stock at
all times. The sales trend improved so much the retailer plans to
expand this program to other major markets.
Source: Kmart Corp.
Let's examine these remarkable statements created by the marketing brain
trust in the land of the "blue-light special." Their "Have To Have It"
promotion is astounding! First, they chose just two cities in the entire
world in which to offer this promotion. Then they promised their
customers they would actually stock merchandise that they advertised in
their circular. (DUH!) They went on to promise to sell this merchandise at
the price at which they advertised it. (DUH!) Based on their own words,
these promises pertained to only certain items in their circulars!
Does that mean other items in the circular won't be available in the store
and, if they are, will be marked at a price other than the price in the
circular? If you're not laughing out loud at this point, you need to re-read
this paragraph!
The second Chicago pilot program is more difficult to believe than the
first one! Someone in the Motor City Ivory Towers of Kmart came up with a
real innovative approach to retail selling. They put their heads together
and decided to keep their top 300 items in stock at all times! (DUH!)
For some unbelievable reason, sales increased when they tried this
"out-of-the-box" concept! As a result, they've decided to try the same thing
in some of their other major markets! If things keep going so well, they may
decide to keep more than their top 300 items in stock and they may even
decide to go way out on a limb and expand this promotion to all of stores
instead of just some of their major markets. What a concept!
Personally, I can't believe the captain of this sinking ship allowed that
article to be released to the press. I'm not anti-Kmart. I'm anti-stupidity.
I've lived my life knowing I would see that familiar giant red
K in
every city I traveled through. It has been a long-standing mainstay in our
culture. I can say the same thing about my parents and my children. I'm
truly saddened that I may not be able to say the same thing for my
grandchildren. If the powers that be at Kmart don't wake up soon, Kmart will go the way of Montgomery
Wards, Service Merchandise, and others who turned a deaf ear to the voice of
the consumer. Kmart resurrects the blue light special and threatens to
change their color scheme from red to green at a time when they should clean
up their stores, stock their shelves, and teach their employees how to treat
customers as though they want them to return. However, I fear that would be
asking too much. My heart longs for the return of the Kmart of old that
brought smiles to faces of loyal customers everywhere. My head says it will
never happen. I hope I'm wrong.
Publication Date: Fall 2002
Harry K. Jones is a professional speaker
and consultant for AchieveMax®, Inc., a firm
specializing in custom-designed keynote presentations, seminars, and consulting
services. Harry has appeared all over North America addressing topics such as
change, customer service, creativity, employee retention, goal setting,
leadership, stress management, teamwork and time management for a number of industries,
including education, financial, government, healthcare, hospitality, and
manufacturing. He can be reached at 800-886-2MAX or by visiting
http://www.AchieveMax.com.
Publication Date: Winter 2002
If you are interested in change management, you might also enjoy ...