The Kmart brand is growing and excelling rapidly in Australia, but what went wrong in the US? The announcement that Kmart is closing its last full-size store in America has come as a surprise.
Kmart once operated over 2,000 stores across the States. It marks the end of an era for the brand that once dominated the discount retail space.
The retailer thrives in Australia, with over 300 stores, but in the US, the situation is vastly different.
What went wrong? Kmart started losing its core audience.
Mark Cohen, an analyst from Columbia University, blames it on complacency, poor innovation, and outdated store locations.
Key lessons to learn from Kmart’s closure in US
When we look at successful retailers like Walmart and Amazon, which are leading the sector, the answer to how they managed to stay in favor of customers is simple – modernization. They kept in touch with what customers wanted from technology.
Kmart fell behind.
Business owners know how easy it is to fall behind with what customers want. It’s a constant moving goalpost.
Here are lessons e-commerce and retail business owners can learn from Kmart’s collapse in the US.
Constant innovation is critical
Kmart’s biggest downfall was its failure to innovate. Other retailers like Amazon and Walmart kept on improving customer experience through new technology, but Kmart stayed stagnant.
It’s important for e-commerce businesses to move with the times and stay competitive with new technology; it’s not as expensive as you think.
Understand your customers’ needs
Personalization is key. New research shows that customers want a personalized experience and are even prepared to pay more for it.
Think of multiple delivery options, flexible returns, and easy mobile shopping.
User-friendly systems
No customer wants to buy from an online store if the purchasing process is confusing and difficult. Keeping your website clean and up-to-date will attract more customers and make your business thrive in the future.
NOW READ: What do customers really want? Companies that prioritize data protection
Share this article
About the author
Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.
