Kmart Corporation





The Kmart Corporation is a retailer based in Troy, Michigan.

It was originally founded as S.S. Kresge Corporation in 1899 by Sebastian S.
Kresge in Detroit, Michigan. The first store was a five-and-ten-cent store
similar to those operated by Frank Woolworth. The store grew into a chain
known as S. Kresge. By 1912, the chain was operating 85 stores.

By the 1920s, Kresge was operating larger stores that offered a wider
variety of merchandise and prices, which were precursors of the modern
discount store. The first Kmart department store opened in 1962 in Garden
City, Michigan. A total of 18 Kmart stores opened that year.

Kmart was known for its "blue light specials": at surprise moments, a store
worker would light up a mobile police light and offer a discount at a part
of the store. During the 1970s, Kmart put a number of competing retailers
out of business.

In 1977, S. S. Kresge Corporation changed its name to Kmart Corporation. In
1987, Kmart Corporation sold its remaining Kresge stores.

In the 1990s, Kmart underwent a number of missteps. Unlike competitor
Wal-Mart, it failed to invest in computer technology to manage its supply
chain. Furthermore, Kmart has been faulted for continuing to maintain a high
dividend which reduced the amount of money available for improving its
stores. Many business analysts also fault the corporation for failing to
create a coherent brand image. It was attempting to compete with Wal-Mart on
price at the same time trying to move upscale with lines offered by Martha
Stewart and Jaclyn Smith.

The stock scandals of Martha Stewart severely hurt the corporation's image.
In addition, Kmart attempted to compete against Wal-Mart on price, which
failed because Wal-Mart was able to meet and beat Kmart's price cuts.

On January 22, 2002, it filed for bankruptcy protection. On May 6, 2003,
Kmart officially emerged from bankrupcty protection as Kmart Holding
Corporation and on June 10, 2003 it began trading on the NASDAQ National Market.