Unequal Competition Among Chains of Supercenters: Kmart,Target, and Wal‐Mart

The three largest discount chains, Kmart, Target, and Wal‐Mart, have adopted the supercenter format for expansion. This article examines the locations of and the competition among these supercenters. Wal‐Mart has the greatest number of supercenters and is driving the expansion of the supercenter format. Both Kmart and Target have clustered their supercenters in a small number of metropolitan markets. In contrast to Wal‐Mart and Kmart, Target has focused on a middle‐class rather than a blue‐collar clientele. Now Kmart is struggling following a declaration of bankruptcy. Wal‐Mart has largely defeated its supercenter competitors and now is confronting the major grocery chains for grocery sales.     

The Locations of Wal-Mart and Kmart Supercenters: Contrasting Corporate Strategies

Wal-Mart and Kmart, the two largest American discount retailers, have begun to utilize a supercenter retailing format that combines a full-service grocery store with a discount department store. Supercenters are expected to be the major format for future expansion of each of these firms. The purpose of this paper is to analyze the spatial expansion strategies of each firm for the locations of its supercenters. Wal-Mart is quickly expanding its number of supercenters in modest-sized communities clustered around its grocery distribution centers, especially in Southern states. Conversely, most Super Kmart Centers are located inthe suburbs of widely scattered major metropolitan markets, and Kmart has yet to develop a grocery distribution network. Kmart currently has major financial problems that severely restrict the expansion of the Super Kmart Center format.     

Assessing the impact of retail location on store performance: A comparison of Wal-Mart and Kmart stores in Cincinnati

This study aims to analyze and explain, from a locational perspective, differences in the performance of Wal-Mart and Kmart stores in the Greater Cincinnati Area. A modified Huff model, taking competition and agglomeration into consideration, is developed to estimate the potential sales of individual Kmart and Wal-Mart stores. Results show that the modified Huff model is capable of more accurately estimating individual store sales than traditional interaction models. This study also suggests that the selection of store locations partially explains the difference in performance between Kmart and Wal-Mart stores. The model is calibrated using data collected in 2003, and the validity of the model is supported by the latest development of the stores in Greater Cincinnati Area since 2003.