BUSINESSWEEK ONLINE : SEPTEMBER 4, 2000 ISSUE
THE CORPORATION

Fixing Kmart's Problems


New CEO Charles Conaway's game plan

PROBLEM: Poorly run stores, inventory snafus
THE FIX: Toss out complex processes and spend $2 billion on new technology to improve flow of goods to store shelves

PROBLEM: Lack of customer focus
THE FIX: Introduce 24-hour customer-service centers. Reward employees for superior service

PROBLEM: Muddled ads, unclear marketing message
THE FIX: Offer fewer promotions and step up private-label brands such as Martha Stewart and Sesame Street


DATA: BW


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RELATED ITEMS
A Kmart Special: Better Service

CHART: Kmart's Comeback Fizzles

TABLE: Fixing Kmart's Problems

``It Doesn't Get Any Bigger Than This''

RESUME: Charles ``Chuck'' C. Conaway



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