Anyone else notice the deep discounts going on around the store. For example at the end of August we discounted all garden statuary for a $1 and all fountain for $5. I have never seen such a deep discount for many of the items it was more than 90% off. We sold most of what we had on the first day in years past we've gone from 50 to 60 to 70 to 80 to 90% off but this year we went from 65 to 70% straight to 95 to 99% off it was very strange another example are the the price drops that are going on in the pantry and HBA. I've noticed a lot of discounting on several different items not sure if it's just my Store or not but it just seems like a lot of items are being deeply discounted, with a majority of items now being sold at or below cost
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So the Kmart Genco return center is closing at the end of this year? Is that what your saying?
Fyi... shipping back or boxing up unsold or damaged merchandise for redistribution or salvage actually costs the company more to handle than disposing of it in store. Managers are now expected to throw it out or clearance it. Kmarts dont have the quantity of send backs that a Target or Walmart might (their stores tend to send back several pallets a week.) The only time you will see merchandise being sent elsewhere is a store to store transfer, where one store on the same truck run might by sent product from another store.
DCs are being realigned on the Kmart side. That is all I know. Can one deduce there will be closures? Probably. Will stores see more direct shipments of product from suppliers? Most likely.
9055, I thought all of the DC's were closing the end of this year?
Pantry and HBA price drops occur on a regional or local level. They are generated based on competitive pricing (lowering the national price to fit the local market competition), manufacturer give backs or incentives to move product, sell by dates (price drop to move product before shortdating), or there is overstock in DC or backroom.
The difference between 2016 and 2015 was the heavy promotional dumped into surprise points in both garden shop and patio in 2015. No spend threshold offers of $25 on patio, which includes the statuary, grills, power equipment, patio sets, pots, and lawn furniture -- which were deliberately set to include clearance. And $10 toward $20 spend in garden shop, which is live plants, bird seed, chemicals, and bagged mulch/soil. Members received these repeatedly. Patio had almost no print advertising both years. So, the $1 thing didn't surprise me when I saw it come up in our store.
And if someone were to ask my opinion on those surprise points offers bringing in additional sales beyond the "free" $25, I would have to truthfully say they did the job in bringing people to the store and buying a larger basket. Over and over, I saw members purchase a lot more, sometimes hundreds in one shop.
If I've heard correctly, they eliminated the DCs, so when they need to make space for new seasonal merchandise, they have to dump what they have for practically nothing, or else drag it to the curb. The stores no longer have the ability to ship things back.
What seemed odd to me was the fact that we had plenty of chances to sell the garden products at percentages that would have not been a total loss,but no, it sat at 50 off forever and then once nothing sold they decided let's just get rid of it. Such a joke. Managers were so excited to see increases in outdoor living. They would talk about how it was 400% to last year bla bla, but no one took the time to think about the fact that NONE of it was profitable sales, that 400% in one department was completely relative and a total loss when we could have broken even or made something on most of the items we sold. I mean really, a $300 fountain for $5, in years past, worst case it would have been $30. I'm so tired of being told we have to cut payroll or this or that when the company does stupid stuff like this to damage what little profit they could make. Sigh
Odd is relative in these strange days. But, I considered the same things in my store and think perhaps it helps sales history daily to lower inventory ...get the crap out - off the books? perhaps. I did buy a planter from garden that I'm happy with. Home depot does as good all the time on lots of garden things. I back my van right up there and load it up.
My store was told garden shop was done like that so they could get ready for Christmas... I think it was odd