Going the extra mile in automotives - K Mart Corp

Discount Store News, Feb 1, 1993

Kmart's commitment to on-trend, branded merchandise and customer service is as viable in the automotives department as it is in the apparel department.

In fact, it is a goal.

The evidence is everywhere from the new auto service center, to the tire wall and custom wheel program, to the Sony and Kawasaki stereo systems and the new floor mat display.

"We want to provide for the casual and moderate do-it-yourselfer those products that they can get on a Kmart visit," said Harold Parkison, divisional vp, hard lines.

At the core of the program is a brand-oriented strategy that concentrates on the top market share product in each category, he added.

Located at the right rear corner of the store between hardware and sporting goods, automotives occupies the same amount of space as in most Kmart stores, about 400 linear feet. However, a number of new merchandise programs and the updated auto service center convey a new message to shoppers: quality service and products at low Kmart prices. This positions Kmart head-to-head with local auto service centers.

Kmart is dedicated to increasing its visibility in the market as well as its market share. So far the most popular service offered by the auto service center is the quick lube, said Parkison, noting that Kmart is offering the service at a special introductory price of $13.47, about $5 to $6 below the going rate.

A new brochure on the service center tells customers that Kmart's mission is to "go the extra mile." It also informs customers that complimentary services such as protective coverings on steering wheels, seats and carpeting and inspecting tires for wear, will be performed on cars brought to the service center.

When Kmart's next prototype store opens in June in Utica, Mich., further emphasis on service will be evident, Parkison said.

The cornerstone of the automotives department is, unquestionably, the customer-friendly, auto service center. It features six bays and such services as quick lube, precision wheel balancing, tire mounting, battery, alignment and exhaust services all during regular store hours.

Parkison said that having auto service available in the evening, to 10 p.m., more than offsets what may be lost by not being open at 7:30 a.m., typical for most Kmart auto service centers. If the timing proves problematic, Parkison said Kmart would evaluate amending the hours.

Just the appearance of a contemporary looking auto service center is news for the No. 2 discounter. The department represents the chain's recommitment to auto service after years of cutbacks.

"We're done shrinking the chain with auto service centers," said Parkison. Kmart is now reviewing every auto service center in the chain plus new store locations to determine if the format is appropriate for those sites. In some cases it won't be, he admitted, and those auto centers may receive facelifts to update the facility. Others will lose auto service entirely.

Part of the evaluation will center on whether a market can support more than one auto service center. Parkison said he prefers markets that can sustain multiple locations.

The program is also being rolled out to most of the company's Super Kmart Centers. For example, a freestanding version of the center will be added to the Medina, Ohio, Super Kmart Center. A decision has yet to be made about such an addition to the Montrose, Ohio, Super Kmart Center.

By the end of 1993, 10 to 12 auto service centers will be open at the supercenters.

Currently, Kmart operates 965 auto service centers nationwide. By year-end, that number should rise to 1,000.

The service center, first debuted in a Kmart store in Sykesville, Md., in preparation for the Auburn Hills opening, said Parkison.

The new format was designed with the female shopper in mind, said Bill Underwood, senior vp, gmm, hard lines. A focus group study determined that customers want a clean, well-lit auto service center that is "not frightening."

Kmart listened.

The auto service center has a completely glass-enclosed garage area with a customer waiting room. Shoppers may enter the waiting area from a separate outside entrance or from the sales floor.

Customers entering from outside walk down a long, wide corridor that, like the waiting room, is brightly lit with a high-polished white floor and an overall scrubbed clean look. The walls are also in white and are decorated with photos of the auto technicians and their credentials.

In addition to the service area, Kmart made some major changes in the auto supplies area in an effort to create a power format. Some of the changes include: * Tire wall featuring tires from Uniroyal, Michelin--XLE, an exclusive to Kmart--and Kelly, a Goodyear product brought in last spring. Kmart is looking at bringing in a separate Goodyear product. The tire display is mounted on the outer wall of the department on an angle. * Custom Wheels, located next to the tires and also displayed on an angle, will be straightened out to a flat presentation to be more effective. The program is a test and is only available at a very limited number of Kmarts. The custom wheels are priced from $61 to $396 per wheel. * Redesigned car stereo system display and a remote controlled 10-disc CD changer by AudioVox for $349. * Exide gravity-fed battery display, now being tested in five stores.