Kmart SWOT Analysis, Competitors, STP & USP

Sears Holdings Corporation

Discount Retail Store Chain

Lifestyle and Retail

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

Promotional Pricing and Weekly Mailers

Urban Market Segment

Middle Class and Blue Collar customers

Kmart Positioning on low price similar to Walmart

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

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

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

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

Below are the top 3 Kmart competitors:

1.Walmart
2.Target Corporation
3.Macys