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Kmart SWOT Analysis

Published by MBA Skool Team in Lifestyle and Retail category Last Updated: October 22, 2023Read time:

Here is a detailed SWOT analysis of Kmart covering strengths, weaknesses, opportunities and threats.

Kmart Strengths

  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

Above are the strengths in the SWOT Analysis of Kmart. The strengths of Kmart looks at the key internal factors of its business which gives it competitive advantage in the market and strengthens its position.

Kmart Weaknesses

  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

These were the weaknesses in the Kmart SWOT Analysis. The weaknesses of a brand are certain aspects of its business which it can improve.

Kmart Opportunities

  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

Above we covered the opportunities in Kmart SWOT Analysis. The opportunities for any brand can include prospects of future growth.

Kmart Threats

  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

The threats in the SWOT Analysis of Kmart are as mentioned above. The threats for any business can be external factors which can negatively impact its business.

Hence this concludes the Kmart SWOT analysis.

Read Similar SWOT analysis

About Kmart

The table below gives the brand overview along with its target market, segmentation, positioning & USP

Kmart Overview
Parent Company

Sears Holdings Corporation


Discount Retail Store Chain


Lifestyle and Retail

Tagline/ Slogan

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


Promotional Pricing and Weekly Mailers

Kmart STP

Urban Market Segment

Target Corporation Group

Middle Class and Blue Collar customers


Positioning on low price similar to Walmart


This article has been researched & authored by the Content & Research Team which comprises of MBA students, management professionals, and industry experts. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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