Thanks For Tuning In!

…and welcome to all of those who are visiting from fark.com, where I’ve noticed this site is featured today! The Kmart posts are below (just scroll down) and on the next page. Hope that you enjoy these looks at our well-dressed retail past. A number of discount store and supermarket chains have been featured (plus a lot of stuff about Sears) up to now, and they can be searched by chain and in some cases by city on the lower right side of the page. If your favorite chain isn't on here yet, hopefully it will be soon.

The scene above is from a G.C. Murphy store in 1968, where a finely outfitted family is about to drop some serious disposable income on a new RCA Color TV. The family’s first color set, I’d be willing to bet.

Enjoy!

Gotta Stop at Jewel's

A great 1966 view of a new Jewel-Osco “Master Market” combination store, complete with rooftop parking to maximize customer draw in this Chicago city location, a place where free parking can’t always be taken for granted.

This store typifies the architectural style that Jewel (often affectionately referred to as “Jewel's” or The Jewel) used for decades – clean and simple, not flashy. But for those of us who grew up there – memorable.

Kmart - Big Changes for the Bluelight

Having enjoyed a golden decade from the mid-sixties through the mid-seventies, from that point on things would become complicated for Kmart. Part of this was due to external factors such as competition and general economic ups and downs, but a series of management decisions made along the way certainly played a major factor as well.

While Kmart was an early pioneer in automated distribution, they were slow to adopt computer technology for inventory control and ordering, ostensibly to maintain a high level of independence for store managers, but it proved very costly in terms of efficiency. A much larger factor, from the public’s point of view, was the appearance of the stores. While looking at these photos tends to make me (and many of you, as I’ve learned) very nostalgic for those days, one would have to admit that by the time the 1980’s rolled around, the look had become extremely dated. Over time, the public perception of the company unfortunately (and in many respects undeservedly) shifted from a source of “value-priced” goods to one of cheap goods.

As the eighties rolled on, the company found itself fighting a two-front war, on one side against Wal-Mart, which by that time had grown well beyond the Mid-South region, becoming a true national competitor. Wal-Mart, with highly sophisticated information systems and very aggressive supplier policies became extremely formidable in price competition. On the other flank, Dayton-Hudson’s Target stores had expanded far outside of their original Midwestern footprint, in part through the acquisition of such regional chains as Richway, its sister nameplate Gold Circle and a large number of Gemco units from Lucky Stores. Pursuing a strategy that emphasized affordable style, Target signed up designer Michael Graves, among others, to develop chic housewares for those on a budget. Kmart was now in the unenviable position of having to compete with Target on style and Wal-Mart on price.

In 1987, Kmart took a final step in cutting ties to its origins by selling all but 11 of the remaining Kresge and Jupiter stores to Rapid-American Corporation’s McCrory Stores division. By the 1980’s Rapid-American was a key caretaker of America’s 5-and-10 store heritage, owning McCrory, H.L. Green, J.J. Newberry, T G & Y, and McLellan’s. Their only competitors in that fading segment were Woolworth’s and Ben Franklin. Ironically, S.S. Kresge had gotten his start in the business in 1897 as joint owner of a dime store in Memphis, Tennessee with J.G. McCrory. The pair would later open a Detroit store (where Kresge would establish his namesake company) and a handful of others before going their separate ways, starting variety store dynasties under their own names.

In a mid-eighties bid to shore up their fortunes, Kmart embarked on a spree of diversified retail acquisitions (and launches, in the case of Builders Square) that would last into the next decade. The list was extensive. During this period, Kmart bought out, among others, Waldenbooks (and later on Borders Books), Sports Authority, Pay Less Northwest (a Wilsonville, Oregon-based operator of 164 drug stores in the western states), and OfficeMax, a big-box office supply firm that Kmart acquired a stake in when it sold them a handful of “Office Square” stores (a short lived office supply concept that traded on the Builders Square nameplate). Within a few years, Kmart would buy a controlling interest in OfficeMax. There was also a chain of membership stores called Pace Membership Warehouse. Eventually, Kmart would combine many of these into an entity called the Specialty Store Division. Over the long haul, these acquisitions proved to be little help to the company, and in the mid-90’s Kmart began to sell off or spin off these divisions in a succession nearly as rapid as when it bought them in the first place. A large number of the Pace stores were sold to arch-competitor Wal-Mart for conversion to Sam’s Clubs. In 1998, Kmart would sell off its flagging 112-store Canadian division to Toronto-based Hudson’s Bay Company, who would combine it with its 298-store Zellers division, the leading discount chain in Canada.

In 1990, Kmart took the first step towards changing its image, adopting a new logo for the first time. That year, the company replaced its familiar “Kmart” logo with a red block letter “K” with the word “mart” written in script in the upper leg of the K. In my opinion, the single letter looked a bit lonely up there on the expansive horizontal facades of most Kmart stores. The company must have taken pride in their new logo, as I learned when my wife and I stopped into a Kmart shorted after it was introduced. She had worked at this Kmart one Christmas season before we were married to supplement her teaching income, and we decided to pop in to say hi to the manager, her old boss. He asked our opinion of the new logo, and my wife commented on how it reminded her of the old “Big K” signs. Big K was a chain of mid-south discount stores that Wal-Mart bought out in the early eighties.

He didn’t appreciate the comparison. (Hey, at least we didn’t try to claim credit when years later they added the word “Big” to many of their signs starting in 1996!) Recently, Kmart has adopted a new logo, restoring “mart” to its rightful place.

A more positive effect came about when in 1997 Kmart persuaded domestic diva Martha Stewart to create a comprehensive line of household goods to be exclusively sold at Kmart. Called “Martha Stewart Everyday” this very broad product line included everything from dishes to cookware to linens, towels and bath décor, and has in many ways been a lifeline for Kmart. There has been rampant speculation as to whether Ms. Stewart will renew her agreement with Kmart when it expires in 2009.

Despite Martha’s best efforts, Kmart skidded inexorably toward bankruptcy as the nineties drew to a close. Incurring a staggering $2.46 billion dollar loss for 2001, Kmart filed for bankruptcy protection on January 22, 2002. Operating 2,114 stores at the time of the filing, massive closings would follow, and a great many people who grew up shopping at Kmart would suddenly find that there was no longer one in or near their communities. The first wave of closings shuttered 284 stores, and sadly more waves were to follow.

A year later, the future of Kmart would be revealed when it was announced that a group of investors, led by 38–year old billionaire Edward S. Lampert, had submitted a plan to usher Kmart out of bankruptcy. Many changes, a degree of stability and a runup in Kmart’s value would follow, and Kmart has lived to fight to this day, although the road remains challenging, to put it mildly. In November 2004, Kmart announced its intentions to buy Sears, Roebuck and Co., a most ironic twist of fate considering the companies’ arch rivalry for America’s retail crown in the 70’s and 80’s. The combined entity was named Sears Holdings Company, and eventually many Kmart executives would relocate from Kmart’s massive 70’s modern headquarters in Troy, Michigan (which is now finally being torn down -many thanks to the reader who sent this link discussing the complex's fate) to Sears (also massive and much newer) HQ in the Chicago suburb of Hoffman Estates. From a consumer’s standpoint, a significant change has been the availability of core Sears brands in Kmart stores, including Die Hard, Kenmore and Craftsman.

The photos above are circa 1976, and show the sign and an interior from the Ionia, Michigan store, a “Group 9” store which was previously operated under another name. The third photo shows the checkouts from a new store in Oxford, Ohio. The fourth is a snack bar shot, location unknown, and the last store pictured is another Group 9 unit from Dyersburg, Tennessee. Thanks to John Flack, who has a great page on the opening of the Marlton, NJ Two Guys store, for photos 2 through 5.

Kmart - That 70's Store

Ah, the seventies. An era of taste and refinement. Of subtlety and style. And no place was better to outfit that style than Kmart. I believe that these Kmart scenes from the early and mid seventies capture the essence of that era as well as any photo, retail or non-retail, that I’ve ever seen.

Up first is a great early evening photo, from 1973, of the standard seventies Kmart exterior, followed by three very busy, slightly more recent interior shots, showing a virtual sea of 70’s humanity. In the first interior photo, the snack bar can be seen at the left rear of the store. And no, that’s not Ashton Kutcher with his back to the camera, this was the real seventies. The third and fourth photos show checkout area scenes.

By the middle of the decade, one of the burning questions in retail revolved around Kmart and whether their sales would surpass those of Sears, Roebuck and Co. By late 1976, Kmart had pulled past number two JCPenney, with $100 million more in sales and 70 percent higher profits than that well respected company. Another factor that didn’t escape notice was the increasing contrast of Kmart’s success with the troubles of their direct competitors, including some big national and regional discounting names – Grants, Interstate Department Stores (Topps and White Front), Arlan’s, Mammoth Mart and National Bellas Hess, to name just a few who were either out of business by then or were in bankruptcy reorganization. Within a few years, all would be gone.

In 1974, having established Kmarts in most major markets, Kresge launched a second Kmart format which they internally called the “Group 9 stores” specifically for smaller communities who were thought to be unable to support a full-sized (average 73,000 to 96,000 square feet) Kmart. The Group 9 stores were typically in the 40,000 square feet range. Interestingly, several of the Group 9 stores were originally opened as competitors’ discount stores. Kresge was able to capitalize on the misfortunes of several chains such as those named above and convert the stores to the smaller Kmarts. In 1977, the company would change its name from S.S. Kresge Company to Kmart Corporation, an acknowledgment that over 90 percent of their sales were coming from the Kmart stores.

Here are a few video links of vintage Kmart commercials for your enjoyment. The first one comes to us courtesy of Jack, a fan of this site, who commented recently on his pilgrimage to a local Kmart, searching for remnants of the golden era. This mid-70’s commercial, which has become my life’s dream to reenact, was filmed in a store that very closely resembles the one pictured above. It features about as ecstatic (and well choreographed) a reaction to a new store in town as one could possibly imagine. For the last week, I’ve been walking around the house yelling “Kmart!” at random. You’ll see why. The second one, a Christmas commercial from 1974, features the eminently singable “Kmart is your saving place” jingle in its pure original form, one that would be heard in countless alternate versions in the years that followed. The last one is from the 1980 Christmas season, part of a charming series of commercials that I remember extremely well from my youth. Sure drives home the passage of time.

You're Safe When You Save at Kmart

A stylishly dressed mother, with stylishly dressed daughter in tow, shops the Kmart intimates department. A family stuffs a mother lode of purchases, including a color TV, into their car, and a young girl gazes adoringly at Kmart’s return policy, (maybe thinking “gee, Mom really is safe when she shops at Kmart!”, the company’s slogan that was introduced in ‘68), these scenes are circa 1968/70.

By the close of the sixties, the success of Kmart was truly astounding by nearly all measures. A typical variety chain at the start of the decade, the S.S. Kresge Company had roared away from the pack, with no slowdown in sight. From a single Kmart in March, 1962, the chain had grown to 365 units, with 60 to 75 more planned for 1970. In 1960 Kresge’s annual sales were $ 483 million, and by 1970 they were $2.5 billion and growing by 25 percent a year, a trajectory that would be the envy of any company.

Kmart...Eat Here and Get Gas!

You know, there’s really nothing like a Double K Burger when you’re craving that great Kmart taste! Mmmmmmm!

Yes, my friends, there really was such a thing as a “Kmart Chef”. After five years of outstanding growth, Kresge began to explore ways to leverage the success of Kmart. Though virtually all Kmarts had in-store snack bars and/or concession stands, Kresge figured that a free-standing fast food restaurant, complete with the Kmart brand name and located next to the main store, would be an effective way to snare those customers who managed to escape the store with their lunch or dinner dollars still in pocket. It was also assumed that the highly visible locations of the Kmarts – typically on high-traffic streets or adjacent to highways - would draw an ample number of customers as well. The first Kmart Chef, pictured above, was opened in October, 1967 next to the Pontiac, Michigan Kmart. Plans were announced for 10 more to open in 1968.

The stores were somewhat of a hybrid between a McDonald’s-type fast food restaurant and a cafeteria. Customers walked up to a counter (ala McDonald’s) but were given a tray to push along a stainless-steel cafeteria line. The Kmart Chefs did have interior seating, something that McDonald’s was in the process of a frenetic transition to as they replaced their famous red and white-striped walk-up drive-ins with sit-down restaurants. The initial “limited, high-turnover menu”, as Kresge described it, consisted of “hamburgers, cheeseburgers, frankfurters, fish sandwiches (gotta be ready for Lent), French fried potatoes, fried apple turnovers, assorted carbonated and fruit drinks, coffee, hot chocolate and milk”. As the outdoor sign said, hamburgers were initially 18 cents. That same year, in a controversial but fiscally necessary move, McDonald’s finally raised the price of their burgers from their traditional 15 cents to 18 cents as well.

As it turned out, only a small number of Kmart Chefs were ever opened, with the 10th store, an Albuquerque, New Mexico unit, not even opening until 1971. At that time, there were Kmart Chefs in Pontiac, Clemens and Warren MI, Erie PA, Moline IL, Wichita KS, Kansas City MO, Houston and Lubbock, TX. It was truly a random strategy, to put it charitably. The Kmart Chefs were closed down in 1974.

More successful in the long run were the Kmart gas stations. Many Kmarts had auto centers, generally free-standing units, and the addition of a Kmart-branded gas station was first tried in April, 1967 in the parking lot of an Atlanta Kmart. Pictured above is the original gas station (Check out the 100 octane gas - that stuff would probably be eight bucks a gallon now!). Two more Kmart gas stations were opened in the Metro Atlanta area the following January, beginning a strategy that Kmart has employed on and off ever since.

Kmart's Mid-Sixties Ascent

In contrast to its discount image, in the mid-sixties at least, the opening of a new Kmart could arguably be considered a town status symbol. Adding an average 35 stores per year at the time, Kresge would step up its pace even more as that tumultuous decade rolled on, tallying nearly 60 new Kmarts a year by 1970. Development was particularly heavy in the southern and western states, where Kresge had virtually no presence prior to 1960. The company continued to open a small number of new Kresge stores (only 2 in 1965, for example), but by then the writing was clearly on the wall, and all significant resources were plowed into the Kmart program. Surprisingly, a number of the Jupiter stores (a format that was developed to “ride out” the leases of fading Kresge stores) did well, and Kresge found itself in the unexpected position of signing new leases for those locations. Kresge also lost its founder during this period. Sebastian Spering Kresge passed away at the ripe old age of 99 in October 1966, having lived to see Kmart's initial triumphs.

During 1965, Kresge bought out two of Kmart’s original lessees – Holly Stores, Inc., the operator of Kmart’s womens’ and girls’ clothing departments, and Dunham Stores Corporation, who ran the sporting goods departments. A few years later, Kresge would combine the sporting goods and automotive supplies groups into a wholly-owned subsidiary called Kmart Enterprises.

As several of the photos show, Kmart heavily promoted their own private label goods, and many of them became respectable sellers. I vividly remember the first branded Kmart item I owned, a set of 10 (or so) magic markers (the package referred to them as “Water Colors”) in the familiar teal and gold Kmart packaging. My brother and I treated them like prized possessions. That was until we kept leaving the caps off, and one by one they dried out…

The first photo, from 1964, shows the majestic Rocky Mountains looming behind a Denver Kmart (with lots of room to expand!), with a nice snow cover over all. Following are five interior views from 1966, showing a service desk, always front and center in Kmart stores, a toothpaste display (lab tested!), a display of Mattel “Cheerful Tearful” dolls, and one of telescopes (must’ve been a popular featured item in discount stores back then) and lastly a typical supermarket aisle. Below is a nifty 1964 Kmart ad heralding the second Fresno, California store. This ad is interesting in that it shows the geographic distribution of the earliest Kmarts, although the stores are listed in alphabetical order by city, not chronological order.