11/17/2004

Wal-Mart's Potential New Competition

Kmart just bought Sears for 11 billion dollars. Kmart and Sears are merging to one company. Now consumers will be able purchase Martha Stewarts and Joe Boxers product line in the mall. On the other hand, consumers will be able to purchase Craftmens tools in Kmarts. Because of this merger, this company just created a larger consumer base, will have greater buying power with distributors and wholesalers. Both Kmart and Sears stock moved up. Sears went from $9.43 to $54.63 per share (NYSE) and Kmart jumper from $16.58 to $117.80 (NASDAQ) this morning.

Because of this merger, will Kmart and Sears give the Wal-Mart a run for its money and be able to compete more efficiently or is this more to save both companies from Wal-Mart's empire?

Something else to think about, Craftsmen tools have built a reputable name for itself for sometime and now Kmart will be able to sell these tools in their store. Will Craftsmen tools reputation stay the same or will Kmart give it a bad, cheaper name?

2 comments:

Dr. Tufte said...

This is all good, but I commented on two later posts about K-Mart and Sears. Go check them out!

Unknown said...

WalMart is a worthless Store. They never have what you need, only what they are selling. Their Goods have the Quality of Harbor Freight, which is a joke.

There are some goods you can get at walmart....But The Sears/KMart merger is a force to be reckoned with. Home Depot better watch out too.

Only way WalMart can compete is buying Home Depot.