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How Kmart’s Downfall Holds a Lesson for Modern Churches
- Dr. James Emery White Serioustimes.org
- Updated Nov 26, 2024
Ask someone under the age of 30 what a “blue light special” means, and they will probably look at you with a blank stare. That’s because they have probably never stepped foot inside a Kmart. And that has been the problem. The last full-scale Kmart in the continental U.S. is set to close its doors, marking the end of a once-iconic retailer. Founded in 1899 as SS Kresge, with its first branch opening in 1962, Kmart was a pioneer in discount retailing. During the 1980s, annual revenues exceeded $36 billion earned through more than 2,000 stores. By 1986, the store was the second-largest retailer in the United States (second only to Sears).
So what led to Kmart eventually filing for bankruptcy in 2002 and again in 2018, and now closing its last remaining store? Yes, there were some failed acquisitions, but mostly, it was due to three things that can lead any enterprise – including a church – to go from blue-light special to black-out demise.
Mismanagement. Kmart was grossly mismanaged. A “special strategy group” in the 1970s led to a lack of focus on the core merchandising business. They went into the book business, the sports equipment business, the office supply business, and more. This caused growth to stall in the ’80s and ’90s. Mismanagement also extended to what has been called one CEO’s “fraud” and a subsequent CEO’s “greed.” In other words, leaders lost sight of their mission and lost sight of their moral compass.
Outdated Locations. During its rapid expansion, Kmart added new stores but let existing ones deteriorate. They became dirty and outdated. And, of course, “everything communicates.” People simply didn’t like shopping there anymore. Even Martha Stewart, who had signed a branding deal with Kmart, remarked: “Have you been into a Kmart lately? It’s not the nicest place to shop.” And it wasn’t just the interior. Many Kmarts found themselves in locations that were not nice places to shop, much less convenient.
Failure to Adapt. Finally, Kmart simply failed to adapt to changing times, specifically online shopping trends. The world had gone hybrid, yet Kmart stayed bricks and mortar alone. They also failed to adapt in terms of differentiation. Walmart had cheap prices, Target had trendy styles, Kmart had...?
If I were to compile a list of reasons for why so many churches are plateaued or declining – or have even shuttered their doors – the reasons for Kmart’s demise would be at or near the top: leadership missteps, both strategic and moral; inattention to location; and failure to adapt to a changing world. Specifically, the way the world wants and needs to be engaged.
Yet, as many have observed about Kmart, all are easily avoided and, in most cases, easily corrected.
Any church can recapture a sense of mission.
Any church can respond to a leader’s moral failure with fresh integrity and accountability.
Any church can pay attention to its physical location, whether that means taking care of its existing one or relocating.
Any church can make the choice to adapt accordingly to a changing world in terms of how best to connect with the people we are trying to reach.
Let me say it again.
ANY church.
And by the way, a “blue light special” was a flash discount announcement made to in-store shoppers. A large blue light would flash over merchandise discounted for that moment.
Just thought you might want to know since you’ll never be able to experience it again.
James Emery White
Sources
Anne D’Innocenzio, “Kmart’s Blue Light Fades to Black with the Shuttering of Its Last Full-Scale US Store,” AP News, September 24, 2024, read online.
You can read more about S.S. Kresge Company here.
Keith X. Donovan, “What Happened to Kmart? (Incompetence, Fraud and Greed),” Startup Stumbles, December 21, 2023, read online.
Photo Courtesy: ©Wikimedia Commons/Curlyrnd
Published Date: November 7, 2024
James Emery White is the founding and senior pastor of Mecklenburg Community Church in Charlotte, NC, and a former professor of theology and culture at Gordon-Conwell Theological Seminary, where he also served as their fourth president. His latest book, Hybrid Church: Rethinking the Church for a Post-Christian Digital Age, is now available on Amazon or from your favorite bookseller. To enjoy a free subscription to the Church & Culture blog, visit churchandculture.org where you can view past blogs in our archive, read the latest church and culture news from around the world, and listen to the Church & Culture Podcast. Follow Dr. White on X, Facebook, and Instagram at @JamesEmeryWhite.
