Kmart buying Sears

[ladyspur]

Consumers could be getting mall-based alternative to discounters in $11 billion merger deal.

November 17, 2004: 9:34 AM EST

NEW YORK (CNN/Money) - Kmart Corp. is acquiring Sears, Roebuck & Co. in an $11 billion merger that aims to merge the best of both brands and create a low-priced shopping haven in malls.

Kmart's strength lies in apparel and home accessories, with such brands as Thalia Sodi, Jaclyn Smith, Joe Boxer and Martha Stewart Everyday products.

Sears' current line-up includes well-known clothing labels as Lands' End and its youth-oriented Apostrophe brand.

"Imagine going into Kmart and buying a Sears Craftsman tool set, or buying Kmart's Martha Stewart home products at Sears," said Marshal Cohen, chief retail analyst with market research firm NPD Group. "To Kmart shoppers, Lands' End may not mean anything, but now it will."

Sears' biggest strength is in home appliances, where it's still No. 1, despite declining market share, according to Cohen.

The company said it will continue to operate with both brand names but that some Kmart stores will shift to Sears locations as Sears continues to move away from mall locations.

"Kmart never had appliances and had no reputation for service," said Kurt Barnard, an independent retail analyst. "That's an honor that belongs to Sears. And Kmart has reputation for low prices, which Sears never has had."

Barnard said he's confident the combined companies will not hang onto all 3,500 stores they own between them.

Full story here: Merge

[phillyspurslover]

we're just one step closer to being one big company for everything.

scary.

[DizzG]

If only Wal-Mart would go away

[Crusian]

Will they install a blue light on top of the Sears Tower?

[Jason R]

How is KMart buying anything? I thought they were bankrupt.

[To be named later]

I don't like this. I like Sears, though I only go there for tools and appliances.
I don't want any of K-Mart rubbing off on Sears.

If Sears starts to resemble K-Mart, they will be taking a step down.

And yeah......how could K-Mart be buying Sears?

[shelden]

Just a guess, but now that K-Mart is in bankruptcy, does that equal no debt? This does not seem right, but perhaps after further thought it will make more sense. Land's End at K-Mart?

[Ganuple]

K-Mart is no longer in bankruptcy.

When K-mart shut down most of it's properties (several locations were PRIME realestate) , it raised enough money to pull them out of bankruptcy...and then some.

However, I do not think this will be a lasting merger.

1 crappy store + 1 crappy store does not = success in my books.

[Jason R]

KMart is a crappy store admittedly, I don't think Sears is.

[CrissyTDTP]

So K-mart is back in SA?

[Lump of Coal]

Does $11 Billion seem low to anyone? It does me.

Sith

[Blake]

Originally Posted by Ganuple

1 crappy store + 1 crappy store does not = success in my books.

I agree. Sears is overpriced and their customer service is HORRIBLE. I have a story that I don't have the time to type, but it was not just one incident, I'll tell you that.

and Kmart is just as dirty a store as Wal Mart, but the prices are higher. Sometimes I like shopping at Target just because the store is so unbelievably clean.

[txallstar]

sears blows. it's horrible. if it wasnt for craftsman i wouldnt shop there.

[DizzG]

I cant remember the last time I was in a Sears or a K-mart

I usually only go to Target/costco etc..

[ProjectGSX]

Originally Posted by Ganuple

1 crappy store + 1 crappy store does not = success in my books.

Yep. Its like HP buying Compaq.

[Taco]

Attention K-Mart shoppers, please do not let your kids play in our Sears Dryers

[Amente]

The place that'll get me the best deal fro the product I want is where I will shop.

I could care less what name is on the door.

[To be named later]

Originally Posted by Amente

The place that'll get me the best deal fro the product I want is where I will shop.

I could care less what name is on the door.

True, in theory.

But in K-Marts case, given that I know their prices are higher, the store will be dirty, the product may likely be out of stock, customer service is terrible, and that beyond this one product there will be little else to shop for in the store, K-Mart will be off my radar before I even begin to compare deals.

Ughhhhh.....K-Mart is where my father shopped....that was one of only a few choices he had. Nowadays, there's a larger selection of better stores that aren't stuck in the 70's, like K-Mart.

[TexasNative]

Top 10 New Things we can Expect from the K-Mart and Sears Merger

10) Martha Stewart DieHard batteries in a cornucopia of tantalizing fall colors.

09) ???

[To be named later]

9) The Martha Stewart Living 19.2 Volt Craftsman Cordless Drill. Comes complete with a carrying case that doubles as a tea service.