It's been a few months since Sears and Kmart merged to create Sears Holdings
Shareholders in Martha Stewart Living Omnimedia
Once Sears and Kmart have integrated the best that each has to offer, one store brand is going to have to die. The two will be practically indistinguishable. It's the only way this project can end. And if it happens, hardly anyone would be shocked to see the surviving Kmart locations rebranded as Sears in a couple of years.
This is Sears Holdings, not Kmart Holdings. Yes, some larger companies have taken on the corporate name of their smaller acquisitions. But in those rare cases, like when like First Union bought Wachovia
I'm not just being cruel. Last month, Nike
Kmart's shares had been rising before the merger, but it wasn't because the market was suddenly optimistic about the company's chances. It was because Mr. Market had come to embrace the value of the real estate that Kmart was sitting on.
It let Wal-Mart become the low-cost leader. Despite teaming up with classy celebrities like Jaclyn Smith, Kathy Ireland, and Martha Stewart for exclusive product lines, it still failed to nail the "cheap chic" format that allowed Target
Will the last person to leave the Kmart brand please turn off the blue light?
Some other blue-light editorial specials:
- When Nike was thinking about bailing out of Sears before its brand image was tarnished, it just did it.
- Wider distribution of Martha Stewart Living wares should be a good thing.
- The merger between the two struggling retailers drew interest at first, but maybe Kmart is the softer side of Sears.
Longtime Fool contributor Rick Munarriz wouldn't mind if his own product lines were on the Kmart racks. Now he just needs the product lines. He does not own shares in any of the companies mentioned in this story. The Fool has a disclosure policy. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.
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