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| Re: Kmart with Astor Place entrance closing (1580307) | |||
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Re: Kmart with Astor Place entrance closing |
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Posted by Peter Rosa on Sun Jul 11 10:47:42 2021, in response to Re: Kmart with Astor Place entrance closing, posted by Chris R16/R2730 on Sun Jul 11 10:28:28 2021. Holy crap i am really out of the loop here. I thought Lampert still owned this mess. My last contact in the company was in the Metro Mall store that closed three years ago.There are also two stores, in Key West and Guam that were turning profits as late as 2016. Like the VI locations, the reason is lack of competition. Excluding Key West, all these stores are located in areas where it is prohibitively expensive to ship to, making online shopping difficult. Eddie is the chairman of Transformco, so he's still in charge of the whole mess. From what I've heard, just rumor stage at this point, is that the handful of remaining Kmarts are getting very few shipments from vendors and are mostly just selling down whatever stock they have on hand. The company can't afford to pay cash on delivery and its credit is such that vendors won't sell to it on terms. I also would imagine that with so few stores remaining, and with them spread out rather than geographically concentrated, buying in bulk is getting more and more difficult. If Eddie really wants to keep the remaining ones open he might have to shift to a consignment model, in other words selling products on consignment for vendors rather than buying and reselling them. Fry's Electronics, a superstore chain in California and other western states, had to go onto a consignment model a few years ago when vendors refused to sell to it; while the company failed earlier this year it lasted a couple years longer than it would have had the consignment approach not been available. Doing so with Kmart might buy it a little more time. |
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