KMart's New Drive Thru Concept Is Sensible

Originally posted in Concentrated Value

"What's a myGofer?

It's a pilot concept hatched by Sears Holding Corp., owner of Kmart and Sears stores. The Joliet myGofer will be one of only two in the country, Sears Holding Corp. executives said Monday. They explained more to the Joliet City Council, which approved the concept for the Kmart near Westfield Louis Joliet mall.

It's "a marriage between online shopping and brick and mortar," the company's creative director said.

It reverses the 80/20 percentage split between store floor and storage space, a top architect with the company said, giving most of the space to storage.

The Kmart store on Plainfield Road now open for Christmas shopping won't be a Kmart anymore by next summer.

Concept of convenience
"We have embarked on a new concept," said Steve Sunderland, vice president of concept renewal. Sunderland said Sears is on a mission to "redefine the retail landscape."
Basically, Sears hopes to attract online shoppers to a store where they can pick up merchandise without leaving their cars if they want. The city council OK'd the drive-through lanes, which needed official approval before the 85,000-square-foot store could be remodeled for the myGofer concept.

Customers also will be able to walk into what Sears calls a "showroom" where merchandise will be on display and can be purchased on the spot as well. The showroom, however, will take up only about 20 percent of the building, and the rest will be used for storage and processing purchases. The store will continue to have 55 employees as it does now, but more of them will be full-time employees, Sunderland said.

MyGofer might remind some of the old concept of Service Merchandise, the defunct retail chain.

But Sunderland said online shopping will make a big difference at myGofer.

"It's a concept built around convenience, value and an immense amount of selection," Sunderland said. Customers, he said, will be able to "pick up the merchandise on their terms."

The drive-through lane will go where the Kmart Garden Center now is located.

Full article in Suburban Chicago News

This is a very neat move. Being able to order on line and then just drive up and pick up without getting out of the car is very appealing to those who would rather not lug kids and or babies through a store. This is especially true as the weather turns. It will be the only retailer of the group Wal-Mart (WMT), Target (TGT), Macy's (M), JC Penny (JCP) that offer the service..

On another note. I have received plenty of email the last few days about Sears Director Richard Perry selling shares. The sale is a function of troubles at his hedge fund, not an indication of his thoughts on Sears.

Also, here is a nice video about how Sears treats U.S. Vets...

Disclosure: Long SHLD

Comments

[Kmartdunn:]

Come on people.Kmart cant even staff there dieing stores now.And by the way if this would work Walmart would have already done it.Kmart grasping at straws again.

2008 Dec 22 04:34 PM

[Chuckie:]

Kmart is a dead horse. No matter how hard you kick it, it won't get up. This has been tried before, don't work.

2008 Dec 22 04:41 PM

[spinetta:]

Does anybody remember Best Products? Now, imagine the line of people at the will call window transformed into a line of cars snaking through a former KMart Garden Center. Added bonus: You're in that line, in Illinois, during the winter! Oh, joy! Driving to a store and waiting in a line of cars sure beats paying UPS a few bucks to deliver the goods that you bought online. Earth to Sullivan: Those who don't want to visit stores DO NOT WANT TO VISIT STORES. Visiting the exterior of a store such as the KMart prototype provides most of the hassle, little of the satisfaction, and none of the impulse purchases (important to every retailer) included with a visit to the interior of a store. Earth to KMart/Sears: Your time is up.

2008 Dec 23 11:40 AM

[Rigster:]

Dear Mr Sullivan,
I just wanted to write to you to thank you for your articles. I enjoy reading them very much. I agree with you about Sears Holdings, I think that Sears and Kmart are far from being finished. In fact what you are seeing is only the beginings of a very powerful cash flow generating enterprise! I can't get to much into my thoughts about what I think Sears Holdings is going to do next, but I will say this. I think many investors are looking to much into the negative news about the current economic enviroment and how it is affecting the company currently and not at the intrinsic value of the business.

2008 Dec 24 09:35 PM