Kmart set to be largest retail bankruptcy

Brand Strategy, February, 2002

A fierce battle of price-cutting against major rival Wal-Mart has led US-based discount retailer Kmart to the brink of bankruptcy. As Brand Strategy goes to press, the chain looks likely to follow energy giant Enron into receivership.

Having struggled for a decade, according to the New York Post the company's recent misfortunes are as much to do with the current economic climate as its reputation as a `low-rent' alternative to other supermarkets such as Target and Wal-Mart.

Bryan Roberts, analyst at Mintel's Retail Intelligence, sums up its problems: "It's up against a very strong player in the form of Wal-Mart. Instead of developing its offer it has just been relentlessly cutting prices."

Kmart is as much a part of US national identity as...