Kmart SWOT Analysis, Competitors & USP

Published by MBA Skool Team, Last Updated: April 26, 2020

SWOT analysis of Kmart analyses the brand by its strengths, weaknesses, opportunities & threats. In Kmart SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.

SWOT Analysis is a proven management framework which enables a brand like Kmart to benchmark its business & performance as compared to the competitors. Kmart is one of the leading brands in the lifestyle and retail sector.

The table below lists the Kmart SWOT (Strengths, Weaknesses, Opportunities, Threats), top Kmart competitors and includes its target market, segmentation, positioning & Unique Selling Proposition (USP).

Kmart SWOT Analysis, Competitors, Segmentation, Target Market, Positioning, USP & Brand Analysis Table
Kmart Brand Analysis
Parent Company

Sears Holdings Corporation

Category

Discount Retail Store Chain

Sector

Lifestyle and Retail

Tagline/ Slogan

There's smart, then there's K-mart

USP

Promotional Pricing and Weekly Mailers

Kmart STP
Segment

Urban Market Segment

Target Corporation Group

Middle Class and Blue Collar customers

Positioning

Positioning on low price similar to Walmart

SWOT Analysis of Kmart
Kmart Strengths

Below are the Strengths in the SWOT Analysis of Kmart:

1. Exclusive Product lines like Joe Boxer, Route 66 etc.
2. Most stores being located in urban areas with concentrated populations
3. Special Lay away plan for people who want to pay in installments
4. Excellent customer service

5. Brand loyalty is high among the smaller customer base

6.Brand Equity is high due to early presence in the retail segment

7.Great quality in food and perishable articles

Kmart Weaknesses

Here are the weaknesses in the Kmart SWOT Analysis:

1.Overleveraged financial position, applied for chapter 11 bankruptcy
2.Inability to compete with walmart on price due to poor supply chain systems

3. Closure of stores affected brand

Kmart Opportunities

Following are the Opportunities in Kmart SWOT Analysis:

1. Emerging Markets and Expansions abroad
2. Private label growth to enhance brand & margins
3. Opportunity to cater to multi-ethnic groups in US with new ethnic marketing efforts

4. Expand services to culinary schools, healthcare, others

5. Target Corporation newer customer segments during lucrative Black Friday sales

6. Increase market presence through store growth in rural regions where it has a low presence

7. Acquisitions of newer brands and labels can improve sales

Kmart Threats

The threats in the SWOT Analysis of Kmart are as mentioned:

1.Economic slowdowns will shift customers to stores with cheaper offerings like walmart
2. Competition from three fronts: high-end (Whole Foods) and price competitive (Wal-Mart and Target Corporation) Increasing Market Share
3. Price wars can drive down already low profit margins

4. External changes (government, politics, taxes, etc)

5. Inability to absorb price increases due to smaller scale vs. national competitors

6. Economic downturn affecting core shoppers’ wallets

7. Declining profits can put pressure on already weak financial positions

Kmart Competition
Kmart Competitors

Below are the top 3 competitors of Kmart:

1.Walmart
2.Target Corporation
3.Macys

 

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Similar analysis has also been done for the competitors of the company belonging to the same category, sector or industry. Browse marketing analysis of more brands and companies similar to Kmart. This section covers SWOT Analysis, Competitors, Segmentation, Target Market, Positioning & USP of more than 2500 brands from over 20 industry sectors.

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