More than a decade ago, Kmart was Wal-Mart's biggest rival.
But today the Sears-owned chain is in a tailspin, plagued by negative sales and disinterested customers. Last year, the company closed 100 stores after a disastrous holiday season.
Brian Sozzi at Belus Capital Advisors visited several Kmart locations and took photos that illustrate how grim it is at the retailer.
"The research and photos presented below show that Kmart, believe it or not, may be in worse fundamental shape than Sears!" Sozzi writes. "By fundamental I mean dreadful to visit, borderline unsafe stores that are sending the division’s financials down a path of no return."
Kmart's welcome message is obscured by metal carts. " Welcome to Kmart, we want you to walk into these metal fixtures on wheels while you are texting on the new iPhone 5s," Sozzi writes.
Brian Sozzi/Belus Capital Advisors
Kmart isn't making an effort to wow the customer. "I n the case of this tired display, you get a depressed feeling before ever even stepping into the store," according to Sozzi.
Brian Sozzi/Belus Capital Advisors
The display problem continues inside the store. " Yes, that is a bent in half paper sign telling the consumer 'please buy these products.' Sozzi writes.
Brian Sozzi/Belus Capital Advisors
The electronics section is confusing. " An industrial rack, next to a folding table, next to the aforementioned random washing machine, nearby the Atari-type point-of-sale system," Sozzi notes.
Brian Sozzi/Belus Capital Advisors
One of the cooler lights is out, which could give a customer the impression that food is old or expired.
Brian Sozzi/Belus Capital Advisors
The brown corrosion on the floor below these car batteries caught Sozzi's eye.
Brian Sozzi/Belus Capital Advisors
This is what he found below the shelves. "Is this exposure safe for customers and employees?" he asks.
Brian Sozzi/Belus Capital Advisors
These clothing racks are outdated, showing that Eddie Lampert isn't investing in his stores. The shelves are also understocked, which could mean that customers who even want to buy the jeans would be unable to.
Brian Sozzi/Belus Capital Advisors
This shoe display of ugly boxes isn't alluring to customers. " A consumer that doesn’t come to Kmart for a boot can’t even be enticed to buy a boot from across the store if there are is no display product that is at the eye level," Sozzi notes.
Brian Sozzi/Belus Capital Advisors
And this bare shoe display is made even more pitiful by a broken light in the ceiling:
Brian Sozzi/Belus Capital Advisors
These empty shelves are a problem. " If you have no items to place here, why not dissemble the shelf to improve the department’s appearance?" Sozzi asks. "This display looks as if Kmart is liquidating."