Kmart has announced a jump in sales of nearly 5% over the past 6 months.
👉 Background: Kmart used to be known as the department-store-of-last-resort. Over the past 10 years, it has transformed into the go-to store for chic furniture, dupes and sporting equipment. In fact, there are even Facebook groups with over 1 million members like "Kmart Mums" and "Kmart home decor hacks."
👉 What happened: Now, Kmart has announced a jump in sales of nearly 5% over the past 6 months. If that wasn't good enough, it saw its earnings up more than 26%, which means better margin on all products - particularly beauty and apparel.
👉 What else: Not only is Kmart able to sell good quality dupe products, but they're selling these dupes like hotcakes.
💡If you can’t beat them, copy them, and charge a whole lot less.
💡Over the past 10 years, Kmart has shifted its strategy to become the place for really cheap and acceptably decent quality dupes:
💡Kmart doesn't need to spend the marketing dollars to promote the products, because the brands do it for them. This allows them to continue improving its juicy gross margin on products.
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