Sears/Kmart Merger
Most of the business press coverage of this deal has said that one of the big advantages for the combined company is that they now get to pick and choose which stores to keep and which to close in those markets where Sears and K-mart go head to head. What does this mean for the retail real estate market? Which is more likely to close, the mall-attached Sears or the free-standing K-mart? Does this mean there will be a glut of mall anchor space available? Aren't those stores on long-term leases?
I'd appreciate any thoughts/comments you might have.
I think it is really hard to guess. I can think of several places where there is a KMart just a couple of blocks from a mall that has a Sears.
I don't see closing one in favor of the other. Maybe in the long run, if they develop one store format for the corporation. But for now they are so different, closing one would not seem to benefit the remaining store.
-Don M
The plan, as I understand it, is to keep most stores open status quo, under their current brands. For example, all free-standing K-Marts will stay as they are and carry the Sears products such as Crafstman tools. Sears will carry K-Mart brands such as Martha Stewart and the mall stores will have better prices to draw in the Wal-Mart crowds.
IMHO, it would have been better to combine the brands and make a new 'super brand' to compete with Walmart, somethings such as S-Mart or Super Sears, whatever.
I still drive my local K-Mart and think 'crappy, dirty store.'
The merger does nothing for me and more importantly, for the people who shop there often.
/rant off
wg