Good News and Bad News for Kmart

Sep 05, 2002

Kmart’s Joe Boxer line has turned out to be a big hit with consumers. The brand achieved sales of roughly $20 million in its first week after the retailer broke television commercials promoting the clothing and houseware products line, says the Detroit Free Press.

In a separate article, the daily reports the retailer expects further bumps ahead in the road as it attempts to emerge from Chapter 11 bankruptcy protection. Company officials have advised that they expect fourth-quarter same-store sales to come in lower than last year’s disappointing levels.

Moderator’s Comment: What do you make of the latest
Kmart news?

First the good news: We have to give Joe Boxer its due.
According to the Freep piece, at current levels, sales for the line would
achieve first year sales of approximately $1 billion.

Now the bad: Kmart’s positive steps may be of little consequence
in the final analysis as the chain faces challenges of Himalayan proportions.
Anderson – Moderator

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