Kmart's Ten Deadly Sins: How Incompetence Tainted an American Icon (Hardcover)

~ (Author) "For years, Kmart's financiáis had been lackluster, but until 2002, the company had never filed for bankruptcy..." (more)
Key Phrases: bankruptcy reorganization plan, brand strategy, licensing deals, Martha Stewart, Sam Walton, New York (more...)

Editorial Reviews

Review

Kmart was Wal-Mart before there was a Wal-Mart.
Originally a chain of retail stores along the lines of F.W. Woolworth's "five and dime" outlets, the former Kresge's evolved into the larger Kmart in 1962, with 18 "super-stores." Wal-Mart began the same year with a single rural Arkansas location.
Kmart cruised along nicely for the first 25 years or so, but by the end of the 1970s profits began to dip, coincidental to Wal-Mart's ascendance.
Business journalist Marcia Layton Turner offers a remarkable, no-nonsense examination of Kmart's fall. Her carefully documented tale relies on reporting from the trade and general press, amplified by testimony and commentary from a number of expert witnesses. It's a grim story; reading it is somewhat akin to watching a train going off a mountain, but the tragedy of Kmart is a tale of human incompetence, ignorance, greed and hubris.
Here, according to Turner, are Kmart's 10 fatal mistakes: 1. Brand mismanagement; 2. Not knowing its customers; 3. Underestimating Wal-Mart; 4. Lousy locations; 5. Ignoring store appearance; 6. Technology aversion; 7. Supply chain disconnect; 8. Loss of focus; 9. Strategy du jour; 10. Repeating the same mistakes.
Squeezed by thrifty and technologically savvy Wal-Mart on one side, and trendy, more fashion forward Target on the other, one wonders if the once-mighty Kmart still has a prayer. Hard to say, but if the chain's immediate history of monumental mismanagement offers any clues, it's just a matter of time before Kmart flat-lines — barring a miracle. (The Miami Herald (circ: 327,000), Sept. 29, 2003)

Product Description

Advance Praise

"It’s not a pretty story, but it is a well-told story of the decline and fall of Kmart, the discount chain that pioneered the new category that brought us Wal-Mart. Every would-be entrepreneur should read this cautionary tale."
–Al Ries, Chairman, Ries & Ries

"A well-written comparative analysis of why Kmart failed and Wal-Mart continues to thrive. The management lessons found in the book can be widely applied."
–Eugene H. Fram, J. Warren McClure Research Professor of Marketing, Rochester Institute of Technology

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Product Details

• Hardcover: 240 pages
• Publisher: Wiley; 1st edition (July 18, 2003)
• Language: English
• ISBN-10: 0471435937
• ISBN-13: 978-0471435938
• Product Dimensions: 9.2 x 6 x 1 inches
• Shipping Weight: 1.1 pounds (View shipping rates and policies)
• Average Customer Review: 3.3 out of 5 stars  See all reviews (15 customer reviews)
• Amazon.com Sales Rank: #747,282 in Books (See Bestsellers in Books)

Customer Reviews

Most Helpful Customer Reviews

7 of 7 people found the following review helpful:

4.0 out of 5 stars Good Book with Some Frustrating Shortcomings, December 24, 2003

By	Mark K. Mcdonough "Mark McDonough" (Reston, VA USA) - See all my reviews (REAL NAME)

Marcia Turner does an excellent job of laying out what KMart has done wrong over the years and builds a very convincing case, citing mostly secondary sources such as retail trade journals. The writing is clear and lively, but the "10 Deadly Sins" idea is rather tentatively executed. Many chapters discuss multiple sins, and partly because the entire history of the company has to be addressed in each chapter there is a fair amount of repetition.

But for me, the most frustrating thing about the book is that it is entirely an outsider's perspective. Turner does such an excellent job of documenting Kmart's persistent stupidity over many decades that at some point you want to hear from an insider to answer the question "what could they have been thinking?"

A particular strength of the book is laying out the competitive landscape of discount retailing. One major unanswered question (which, granted, would be very difficult to answer) is how big a role pervasive corruption has played in Kmart's decline. The conviction of a senior real estate executive for bribery indicates that self-dealing in the company may have gone back much further than the executives who put the company in bankruptcy.

4 of 4 people found the following review helpful:

5.0 out of 5 stars All lights were clearly out at this company's corporate HQ, October 13, 2004

By	Robin Orlowski "political activist" (United States) - See all my reviews (TOP 500 REVIEWER)    (REAL NAME)

Kmart debuted around the same time as other American discount retailers, but while they constantly adapted to changing times and styles to keep their relevancy, Kmart luxuriated in a 1970's/early 1980's holding pattern regarding customer shopping and store decoration.

Insisting that discount shopping meant 'cheap' (despite the numerous negative connotations within American culture) Kmart itself turned American shoppers off from spending their money in these stores. Disaffected shoppers then began turning to the other discount stores.

Things became so bad that 'store brands' (usually a godsend for thrifty shoppers) were pulled only because of name stigmatization. It is a bad omen when a store is ashamed of it's own brands.

Kmart actually was unable to figure out why it's clientele base shrunk while Wal-mart and Target respectively grew into the powerhouses of today. By the 21st century, the only people really in love with Kmart's business decisonmaking were the executives who apparently got paid no matter what bad decision they fastened the company to.

After reading this scathing-but fair indictment for myself, I also am amazed nobody from the inside was concered about the shortcomings. The early 1990's 'Big K' concept failed because the company merely put a new sign on the same dinky and dingy stores of yesterday. Constructing more new stores AND a new training program would have made the critical world of difference.

In a Kmart as late as 2003, I was openly taken aback by the dirty floor and cluttered layout. I had honestly chalked that one 'current' experience up to the 'back to school' rush, but if most of the stores in a company are in this condition---there are very big management problems. No amount of downsizing or 'new' brand introduction can bail out a company with such obvious disgust for customers.

4 of 4 people found the following review helpful:

5.0 out of 5 stars Well researched, well written. Well Worth Reading., January 6, 2004

By	Roger E. Herman (Greensboro, NC USA) - See all my reviews (TOP 1000 REVIEWER)    (REAL NAME)

When I picked up this book, I expected to find some interesting insights into why KMart, once so widely known and popular, ran into all its problems. A company whose stores were once part of the American landscape and whose blue light specials were exciting mini-events, spun into bankruptcy on January 22, 2002. What happened?

I looked at the author's credentials and, frankly, was a bit dismayed that she was author of "The Unofficial Guide to Starting a Small Business." Even though the title is described as a best-seller, I questioned whether such an author would be able to produce the kind of study that the K-Mart subject demands. Looking further through the book, I discovered that my concerns were totally unfounded. This book is quite well researched, as evidenced by the abundant footnotes at the end of each chapter. Turner lists, in her acknowledgements, some of the people she conferred with in putting this book together. Impressive. Almost academic.

The book begins with two features I appreciated. One was a chapter, called the introduction, which effectively sets the stage for the in-depth look at what happened... and why. The other feature is a time line that includes progressive events at Kmart and at Wal-Mart. A fascinating fact to ponder is that Kmart and Wal-Mart were started in the same year. Throughout the book, Turner interweaves and compares the strategies-and implications-of Kmart, Wal-Mart, and Target, as well as other retailers. This approach adds value to this book for every retailer-every business leader-who designs strategy with anticipated results. The bibliography and comprehensive index make this book a most usable tool.

A chapter is devoted to each of the Deadly Sins: Brand Mismanagement, Lack of Customer Knowledge, Underestimating Wal-Mart, Lousy Locations, Ignoring Store Appearance, Technology Aversion, Supply Chain Disconnect, Lack of Focus, Strategy du Jour, and Repeating the Same Mistakes. You'll learn about strategic blunders, tactical mismanagement, and operation deficiencies that crippled the potentially powerful chain retailer. Details even go down to the level of describing how insufficient staffing levels in the stores confounded efforts to keep the aisles clear of incoming merchandise, let alone serve the customer.

While you'll shake your head numerous times as you read this educational and insightful book, you'll gain new perspectives and cautions in the way you run your own business and life. Highly recommended.