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Abstract

This case analyses the operating model innovation amidst recession - click and pickup service - of Kmart and other retailers in the US. The retail industry in the US was severely affected as an aftermath of the US financial crisis of 2008, with a marked decline in consumer spending, thereby triggering a decline in retailers revenues. As a result, the retail industry witnessed the closure of many stores, unprecedented job losses and the folding of some of the erstwhile popular retail stores. Amidst all the commotion in the retail industry, Kmart has attempted innovation in its operating model. Popularly known as the click and pickup service, Kmart is experimenting within this service. Notably, the click and pickup service is one of the many multichannel retailing methods and is being used by some of the retailers in varying forms. Given the magnitude of the financial crisis, is it a good strategy to tackle times of crisis by altering the operating model? With many retailers closing down stores, who will survive in the end - those with more stores or those with fewer stores?
Location:
Industry:
Other setting(s):
2009

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Abstract

This case analyses the operating model innovation amidst recession - click and pickup service - of Kmart and other retailers in the US. The retail industry in the US was severely affected as an aftermath of the US financial crisis of 2008, with a marked decline in consumer spending, thereby triggering a decline in retailers revenues. As a result, the retail industry witnessed the closure of many stores, unprecedented job losses and the folding of some of the erstwhile popular retail stores. Amidst all the commotion in the retail industry, Kmart has attempted innovation in its operating model. Popularly known as the click and pickup service, Kmart is experimenting within this service. Notably, the click and pickup service is one of the many multichannel retailing methods and is being used by some of the retailers in varying forms. Given the magnitude of the financial crisis, is it a good strategy to tackle times of crisis by altering the operating model? With many retailers closing down stores, who will survive in the end - those with more stores or those with fewer stores?

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Location:
Industry:
Other setting(s):
2009

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