Kmart Base Case

Company: Kmart
Headquarters: 3100 West Big Beaver Road, Troy, Mich.
Phone Number: (248) 463-1000
Business: Discount retailer of clothes, pharmaceuticals, general merchandise
Financials: $37 billion in sales, net loss of $244 million, net loss margin 6.6% (fiscal year 2001)
Chief Information Officer: Position open
Challenges: Fill shelves with most popular products while still in demand; lower pricing; reduce advertising expenditures while maintaining marketing impact; reduce costs; refocus stores to serve needs of mothers rearing children
Baseline Goals:

  • Fix business and “make it competitive” by Aug. 10, 2002
  • Keep right products in stock 95% of time, up from 86%
  • Provide “super” service in 70% of stores, up from 56%
  • Turn inventory 4.5 times a year or more, up from 3.6 times