Saturday, August 25, 2007

Kmart: We Had It ... And We Had It Good.



In one five minute conversation, 17 years came to a close. Friday, August 24, 2007 wrapped up the final chapter in my association with Kmart. It's a moment that had been many years in the making, yet was avoided as long as possible.

I started my career at Kmart store #9548 in Henderson, NC. It was my first job. At 16 years of age, I was eager to perform at a high level. I was one of those rarities -- a kid who loved coming to work. An oddity as well -- I became a little overly loyal to the home of the flashing blue light special.

My career spanned many store locations. A vehicle which helped put me through High School and college, Kmart afforded me the opportunity to transfer from city to city. First Garner, then back to Henderson, to Raleigh, to Greensboro, then back to Raleigh again.

I briefly flirted with leaving "The Savings Place" when the Henderson store closed in 1995. Ultimately, after about a month off, I chose to stay. While I didn't really know why I was staying at the time, God had bigger plans.



I started working at Kmart #7226 on New Bern Avenue in early June of 1995. It was there I discovered the most important benefit SS Kressge Company ever provided me -- it introduced me to the love of my life -- my wife, Hannah.

Merely 17 years old at the time, Hannah and I began dating in September 1995. At 21, and in college at UNC Greensboro, a two year long distance relationship began. What helped keep it together? Kmart. In those next two and a half years, I came back to Raleigh to work at 7226 -- making frequent trips for kisses, hugs and well ... we can't tell you everything that happened in Lay-a-Way. ;)

What had started with a "Hello, Hannah" the first time I ever saw her standing in front of Register #3, turned into a life-long unity in marriage in 2001.

That one fringe benefit has continued to reap rewards even to this day. Three children later, how important was it to stay with Kmart? You couldn't have put a price on it.





After leaving UNC Greensboro in December 1997, I began a full-time stint. First, a promotion to Department Manager of Consumables, then six weeks later as Sporting Goods Manager. Less than three months later, I was promoted yet again to Frontend Manager. It was at that time I joined WPTF News as a reporter.

Doing double-duty, I managed to stay full-time with the company while following my passion for broadcasting. Less than a year later, I found my true calling -- Human Resources.




Again, Kmart was paving the way -- building a foundation for my future. After nine months as HRM at the New Bern Avenue location, I was promoted again. This time to HR Manager for Super Kmart Center. A nearly $60 million dollar store at the time, with 300+ employees, it was indeed a challenge for me. Only 25 at the time, it was a post I would hold less than three months before being promoted again.



I began working as the Human Resources Market Recruiter in May 2000. It was the ultimate pinnacle in my Kmart career. I enjoyed the new challenge covering stores in three different districts from Greensboro to Fayetteville, Raleigh and Durham.



By the summer of 2001, things had begun to change. Mismanagement at the top of the company was driving the 100-year-old retailer into bankruptcy. None of us knew it at the time.

People started being fired. Left and right, people who had been at Kmart for a generation were being replaced with WAL-MART replicas. The beginning of the end came when I was asked to comprise a list of all WAL-MART store managers and district managers east of I-77 in Virginia, North Carolina, and South Carolina.

It was obvious what was happening. There are unconfirmed figures that two-thirds of Kmart's District Managers were fired and replaced primarily with WAL-MART people. Other unconfirmed figures placed half of Kmart's store managers receiving the ax.

I watched helplessly as a Store Manager with eight months left before retirement was terminated. My District Manager -- a man whom I respected and had promoted me twice -- was terminated after 30+ years with the company.

After September 11, 2001 -- I knew something had to give. I had dreamt of becoming an anchor/reporter for my entire life. Yet, Kmart was standing in the way of that dream.

So it was on October 3, 2001, I stepped down from my position. Unbeknownst to me, it was probably the wisest career move to date. After turning in my resignation, I couldn't eat or sleep for three or four days.

I had worked out an agreement to stay on board part-time at the Cary location. I began my full-time transition to evening anchor and reporter at WPTF. Kmart again became my "safety net."

By Christmas of 2001, things were bleak. I remember knowing something wasn't right. Stock had dropped to lows I had never seen. The mismanagement was showing ever more clearly. While my focus was on WPTF, my loyalty and heart still belonged to Kmart.

By early January, things were very ominous. Stock was under $3 a share. Top executives were very quiet. Then, the talk of bankruptcy emerged. I would have never dreamed a company with 2,100 stores nationwide would have to resort to such a measure.

Then, the death knell was sounded. Kmart missed a $78 million dollar payment to its food and consumables vendor, Flemming. That was it. Flemming cut Kmart off until it made good on the payment.

I laid down my head one mid-January night in 2002, knowing the next day would be different. When I opened my eyes the next morning, I already knew. It was on my mind when the light hit my eyes. "We've filed bankruptcy." I didn't have to see the headlines. My heart already knew it.

I logged onto the computer that morning. There, on Yahoo! News was the headline "Kmart Files Chapter 11." History was made. I wept.

Silly to think I could remain loyal. But, I did. I cared deeply about many friends and colleagues which were left.

From 2001 to 2003, I worked at the Cary location doing pretty much whatever they needed me to do about twice a week. Once I joined Lowe's as Human Resources Manager, I cut back my time to roughly once a week.

In May 2003, Kmart emerged from Bankruptcy. Hedge fund Billioniare Eddie Lampert had purchased millions in Kmart debt, and essentially became the largest single shareholder in the retailer.

Kmart had already closed nearly 300 store locations. Eddie forced them to close another 300 before officially returning the company to a public traded instituion, this time on the NASDAQ as Kmart Holding Corporation.

Lampert begin selling off the most profitable Kmart stores. He increased his position in Sears. Ultimately, I already knew what he was trying to achieve. He was seeking to merge the two century-old American icons together.

While Lampet continued his strategy, I had to watch from afar. Lowe's was increasingly taking up more and more of my time. By mid-2004, my predictions came true. The merger was announced. I was, admittedly excited. (Quick fact: Kmart BOUGHT Sears. Not the other way around.) I really believed that maybe, just maybe, Kmart's white knight had come. The merger, I believed, would strengthen both companies.



Wall Street saw it differently. Lampert wasn't investing cash into stores. Instead, investors believed the real reason he owned both companies was not to continue to run them as retailers, but rather to turn their real estate value into an investment hedge fund like Warren Buffett did with Berkshire-Hathaway.

Sadly, I started to become disillusioned. I was extremely happy at Lowe's. I still am. Yet, Kmart was my foundation. My first job. I was finally having to slowly realize the Kmart I was a part of for so many years, was gone.

By 2005, multiple areas of my life needed more attention. There was less and less room for trips to Cary. I was living in Wake Forest, after all. It took 30 minutes to get there from work -- another hour to get home. But, why was I still there? I couldn't let it go.

At first, I just wanted to reach one more milestone: 15 years with Kmart. And I did. When I was handed a 15-year plaque and lapel pin, I remember a flood of emotions running over me. Unfortunately, one of my first thoughts also was "I made it. I survived." Many of my former colleagues didn't make it to another milestone.

With 15 years in hand, I knew it would be almost impossible to make it to another one. 20 just seemed to far to go. My time had dwindled to working about once every three or four weeks.

By 2006, I simply didn't have hardly any time on my hands. My third daughter was to be born in November. I watched more of my colleagues be shown the door. Many had 20+ years with the company. Yet, I stayed. I believe I worked a total of six or seven days that entire year.

In November, I was transferred to the Wake Forest Lowe's location. One of my first thoughts: there would be no way to keep it up with Kmart. Driving 30 minutes from work was one thing. But to drive an hour to Cary, and an hour back -- it was becoming increasingly impossible.

I worked New Year's day of 2007. After a call four months later from the HR/Office Manager there, I was told either I had to start working more -- or be terminated. I just couldn't do it. I was going to give it one more shot. My last night was in May. Pretty uneventful. The store was in shambles. There was no one to do the work that was required to maintain the store standards.

I left that night not knowing it was my last. I did, however, know that the end would come soon.

For the next few months, I struggled with letting go. No, I didn't need Kmart anymore. It had given me so much. It was more than a paycheck. It was a family. Unfortunately, that family was broken up multiple times over. Still, with all I had achieved -- with all that the foundation Kmart had helped me build -- I didn't want to place that final nail in the coffin.

How could I? It was my first job. I met my wife there. It paved the way for my career. It helped mold me into the person I am. I hadn't left Kmart. But, the Kmart I knew left me a long time ago.

Finally, a telephone call from the HR/Office Manager to me at Lowe's on Friday brought it all to a close.

It wasn't fair to keep them in an awkward position. Even though I didn't want to go -- it was time to stop the long goodbye. I told them it was okay to terminate me. Sissy, the HR/Office Manager and I talked for about five minutes. I told her how it wasn't fair to hold them up like this -- yet I just didn't want to say goodbye. With a few keystokes, I sent her my resignation.

Now most people don't end a job drawing it out like me. Then again, most people don't still have their first job 17 years later -- or meet their wife there -- or create an emotional bond.

Whatever the reason, I'm glad I had the opportunity to work for Kmart. Sure, many other retailers have come along and made many to question why there is even a need for Kmart. And -- they are probably right. Chances are, Kmart won't be around in a few years. I look at my daughters today -- and they no nothing about the glory days of Kmart.

They will never know the joy it was to get a Popcorn from that hot air popper, and a Blue Raspberry ICEE. Kmart will more than likely become a line in Americana. When we look back through the lens of history, we will see the blue light special as we did A&P, Montgomery-Ward, and G.C. Murphy.

I, of course, don't have to look to the past to realize the future Kmart provided for me. A foundation -- a wife -- a family. A jingle in the mid-80s said "Kmart: We've got it -- and We've Got It Good." It wasn't the best grammar. It did, however, stick out in my mind.



Looking back, I'll always remember and cherish this long, storied chapter in my life. Regardless of what happens to Kmart in the future, I'll always remember how good I had it -- and how good I still do.

Randy Gupton, fivesecondstoair.blogspot.com

50 comments:

Unknown said...

This is a great story. I share something similar, however, I left Wendy's after 10 years. Started at 15, then moved up in the ranks slowly, until they were bought by Arby's. The emotional attachment to that world where you are surrounded by co-workers who have become close friends always remains in your mind. I always supported Kmart because they tried to hold onto the same Golden Age ideals for as long as they could. Unfortunately, the times changed, and they were forced to try and change to stay on top of the market. I'm afraid that today, they have the worst customer service, as stated in the ACSI website.

Unknown said...

Hey Randy,

I enjoyed reading your post about the big K. I worked with you at the New bern Ave store from until December 1995. I was the soft lines / fashions manager. Bob Milburn sure was ticked at me when I quit 2 weeks before Christmas.

One of my favorite memories is you on the PA doing those blue light specials... "Attention K-mart shoppers, look up, look down, look all around, its the blue light flashing!"

Patrick Grier

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