Alianzas

Today, even in the rough situation, competition in retails is the only way to improve the tough economic and be successful in the marketplace. Many people go to the stores and spend millions of dollars every day. It could be just for basic staff like food to apparel to electronics or even cars. Every store has to provide to the customers quality on its products, exclusive brands and labels inorder to make the shoppers to find and buy the right merchandise. Retails companies in this moment have been experimenting many obstacles making profits. Companies like Kmart, Sears, Pathmark, A&p and even Wal mart are struggling because the stores are not making money. Some have had patience, money and others have to lose money incurring in disappear or files for bankruptcy protection. Many storeshave closed and analysts have speculated that many more would close this year due the economic situation. According to the history, Sebastian S Kresge was the founder of Kmart and since 1987 he had continued to invest his money and made a partnership with many friends who owners McCrory and Woolworth companies. Finally, in 1912 he incorporated the S.S. Kresge Corporation with eighty five storeswith only invest in two- five and ten cents stores in Detroit and he could experimented a raise the limit in prices in his stores to $1.Through the years this Corporation growth and its reached from 257 stores to 597 stores at the end of 1929. Post-war and great depression reduced profitability and many stores were closed.
But during the 80’s and 90’s the company’s fortune started to change itsimage and focus from Kmart stores to other companies it had acquired, like The Sports Authority, builders Square, and Waldenbooks .Also started offering merchandise by Martha Stwart, katty Ireland and Jaclyn Smith,etc.
But in 2002 Kmart Corp, the second largest discount retail in the United State was one of them that was struggling and the only solution was to close some stores and filed forchapter 11 bankruptcy protection. Kmart’s filling was the biggest in the United States, had been anticipated because they failed to make its regular payments to Fleming Companies Inc. its principal and biggest food distributor. Kmart is a chain of 2,114 stores in the United States, Puerto Rico, and The US Virgin Islands. Kmart also has some stores in Australia and New Zealand but has no relation tothe American business only the name. Kmart is the third largest discount store chain in the world after Wal mart, and target. The only relation between each other is that were founded in the same year, 1962
After the bankruptcy exactly in November 17, 2004, Kmart announced to purchase Sears, Roebuck and Co. The new company was named Sears holdings Corporation. They announced that the new store willcontinue operate with Kmart and sears brands. In this merger both companies established their mutual goal for collaboration. The principal objective of the merger was to be the third largest discount store in the world. Some Kmart stores were converted to Sears Essentials. The new company was supposed to compete with Wal -Mart and Target like I said before.
Both companies identify multiple andpossible benefits and this merger both Sears and Kmart cited many reasons to merger :
-Sears had begun to investing in new stores called Sears Grand.
-Sears bought many Kmart locations and this purchased accelerate the
merger.
-Companies will save $300 million annually particularly in supplies and
administrative overhead.
-Eachshareholder from Kmart will get one share for Sears Corporation
and it could be either stock or cash.
-Both stores stated that Sears Holdings Corporations will have 55 millions
of dollars in sells per year.
-Preservation of two brands allowed the company focuses on different
customer demographics.
After all this,...