A series of management blunders apparently killed the more than century-old Kmart chain and even older merger partner, Sears, from alienating its core constituencies by upgrading its clothing lines to failing to change with the times and embrace online shopping.
The last full-size U.S. store, in Bridgehampton, New York, was shuttered recently, bowing to the merchandizing prowess of such competitors as Walmart and Target.“With Kmart you just never believed they sold high quality product,” Ellis Verdi, founder and president of the New York ad agency DeVito/Verdi, told The Food Institute. “Price and promotions [eclipsed] all else. It was the best example of the difference between low prices and a strong value message.
“Most brick-and-mortar retail competitors who competed on price, such as Walmart, delivered brand name products or a true value proposition like a new 55-inch HDTV you couldnt get elsewhere,” Verdi added.
Kmart and Sears merged in 2005, creating a 3,500-store behemoth with more than 300,000 employees. But both retailers were struggling.
Ill-Advised Decision Anthony Miles, startup and marketing expert, forensic marketing expert and statistician at Miles Development Industries Corp., said Kmart’s first mistake was putting “two losers together.”“The mistake was not only letting Sears hang on too long, but this merger was doomed from the start. Kmart was losing to Walmart and Sears was losing to Walmart. … Not only did the merger not make sense, it showed desperation for both of them. Not a good look to consumers at all,” Miles said, adding that Kmart never differentiated itself from Walmart and Target, and was plagued by bad management.
“That bad management led to bad decisions, bad strategic planning, bad marketing strategy and bad business moves,” Miles said.
Digital strategist Andrew Johnson agreed.
“A big part of the blame can be placed on [CEO] Eddie Lampert, whose poor management decisions pushed Kmart and Sears into deeper trouble. Instead of focusing on saving the companies, Lampert forced different stores, and even departments within stores, to compete against one another,” Johnson explained.
“One of the worst policies he implemented was refusing to let stores in the same chain refer customers to another location for out-of-stock items. It created an unnecessary level of competition within the same brand, hurting both employees and customers.”Kmarts Blue Light Dims
Kmart began life as S.S. Kresge, a five-and-dime in Detroit, in 1899, with the first Kmart-branded store opening in 1962. Sears, Roebuck and Co. started out as a mail order catalogue in 1893, but shut down that arm of the company shortly before Amazon took the idea into the modern era. Neither company ever truly embraced online retailing.
Kmart filed for bankruptcy in 2002 and was scooped up by Lampert, who then turned his sights on Sears. The company became Sears Holdings, and that company filed for bankruptcy in 2018.
Kmart became known for its Blue Light Specials that sent customers scurrying to specific departments for limited-time markdowns with the announcement, “Attention Kmart Shoppers” as a blue light on a pole flashed.
“The greatest component that Kmart missed was focusing on the customer experience. The Blue Light Special was a success because it did just that; it created an amazing in-store experience,” said brand strategist Reilly Newman, founder of Motif Brands.
“They got comfortable, and their market was gobbled up by Target on the accessible designer side of the market and Amazon/Walmart on the value side of the market.”
“Kmarts story is a valuable lesson for retailers to focus on the brand experience and invest in creating something memorable for their shoppers that connects digital to the physical store through emotions,” Newman added.
Kmart still has stores in Guam and the U.S. Virgin Islands. Sears still had eight stores on the mainland U.S. as of September and one in Puerto Rico.
The longtime retailers’ remain alive, but their widespread relevance is, undeniably, fading.

DUBAI, United Arab Emirates – An international event celebrating innovations in manufacturing achievements in the Middle East and abroad, Gulfood Manufacturing celebrated its first decade influencing the world of food and beverage manufacturing on November 5-7.
The event united more than 2,500 food manufacturing leaders and an additional 45,000 visitors to observe rapid developments in the industry. Some of the progress charted includes the steady shift to Industry 5.0, an approach that focuses developments on social value and human prosperity rather than purely economic gains, and technological advancements improving processes across the supply chain.
Let’s dive into some of the key takeaways from the event:The Sustainability Standard
Implicit in many Show floor booth conversations and education session discussions was the call for companies to hit their greenhouse gas emissions reduction targets and promote a more environmentally friendly future.
In a session about imagining a smarter, more sustainable food industry, prominent CEOs discussed the need for F&B to protect the environment as the global supply chain strains to support the world.
“We want to feed a growing population, so we will have to do it in a sustainable way,” explained Alvaro Martinez, CEO of WEMEA and LAM, at GEA Group. However, to bring the prerogative to the masses, these solutions must be accessible.
“It’s all about making sustainability affordable and not only catering to a niche. Sustainability needs to be economically [viable],” added Samuel Sigrist, CEO of SIG. His company was one of those identified by Gulfood Manufacturing for its strides to herald a more environmentally conscious future.
The recent industry push is also coming from global government initiatives in the UAE and in the EU that focus on traceability and conservation. In a conversation with The Food Institute, Marcelo Piva from Tetra Pak stressed the importance of government programs to promote a better world.
What companies and consumers do for sustainability is great, but major change will not occur until governments get involved, he said. In a later education session, World Economic Forum carbon and blockchain expert Erin Grover agreed while adding nuance to the issue. She indicated that, although these changes are necessary, programs must not leave out a key, often overlooked aspect of the supply chain – smallholder farmers who may lack the technology or infrastructure to abide by the government regulations.
Plant-based companies and those that advocate for alternative protein sources also made an impact at the event, with many noting that the United Nations’ projection of nearly 10 billion people by 2050 means that countries will have no choice but to invest in plant-based protein or lab-grown meats because the planet lacks the space, explained Anthea Ayache, founder of the magazine The Ethicalist.
Alternative proteins represented at the show included Mush&’s mycelium fungi protein product, as well as plant-based solutions such as Tetra Paks flavorings and flagship fava bean ice cream, Kerry Group’s various meat and dairy alternative lines, and IFFCO’s clean label plant-based meats launched under its recent initiative called Thryve. The lattermost company boasts the first 100% plant-based manufacturing facility in the Middle East.Tech-Enabled Ingredient Discovery
CPG brands, flavor houses, and data insights firms alike rejoiced in the capabilities of AI, blockchain, and Internet of Things (IoT) with its latest innovations in technology.
Flavoring firm Givaudan showcased a machine for its manufacturing clients that allowed the user to adjust quantities of scents in real-time through a mask attached to the device. Additionally, DSM-Firmenich showcased an AI-enabled precision fermentation technology that allows users to customize the taste and texture profiles of different proteins for animal-free yogurt producers.
Symrise also wowed with a recent program that allowed them to create AI chatbots that emulate specific consumer types. For example, users can interact with Symvision AI’s archetypes to determine whether a New York-native Gen Z consumer or a Gen X shopper living in Dubai would be receptive to a specific offering.
“We know that products only work today when they appeal to certain need states,” explained Dr. Dariah Vanessa Lutsch, global sensory and consumer insights research director at Symrise AG. With the chatbots “we can get a first indication as to whether a flavor will work, speeding up the go-to-market [strategy].”
Smarter Supply Chains
Flavors companies weren’t the only brands to get the tech treatment – manufacturing equipment also benefited greatly from recent developments to offer supply chain solutions that increased security and resilience while also advocating for sustainability and efficiency.
Justin Steinbach, CEO of IFFCO, explained how the companys unflappable commitment to hitting its aggressive sustainability targets. One initiative touted supply chain efficiency that uplifted the environment and the company. In partnership with a firm in Sharjah, UAE, the company’s production facility reclaims oil waste from its manufacturing operations and turns it into biodiesel to fuel its delivery trucks.
Technologies across the supply chain are also allowing companies to ensure safer supply chains through smart monitoring tactics. In a conversation about building resilient food supply systems, Manu Bhalla of Freight Systems Group noted how temp controllers leveraging IoT can constantly monitor the temperatures for food being transported or stored and notify teams if issues are found, ensuring food doesn’t spoil.
Additionally, he added that recent AI technologies have been able to make warehouses more efficient by suggesting organization strategies that can optimize for aspects like expiration dates or seasonality.
Athar Siddiqui, EVP at Siemens, took AI a step further by explaining that recent technologies have allowed facilities to create “digital twins” of every machine to better predict if or when they will break down. This knowledge then allows these stakeholders to determine the best time to make repairs to the product. The benefits of these programs are multifold, including minimizing machine operation downtime and decreasing the risk of food wastage from defective machinery.
However, as factories become more tech-enabled Tony Meghabghab, managing partner of QSpeed Robotics, noted that these technologies cannot exist in a vacuum, and even as companies accelerate their implementation of AI solutions, humans will always have a place in the supply chain.
“A factory that has smart manufacturing would be more efficient, sustainable, and cheap, then it enables the factory to grow,” he said. “[But] humans will still be at the center of everything. Everything that we do around innovation today is around humans. If it is not, then it has lost its purpose.”

DMA celebrated its customers and distributors last week, Big Easy style in New Orleans. The two-day industry event closed with an awards ceremony honoring multiple winners from DMA’s national network. What started with nine founding members in 1988 has grown and evolved into today’s integrated national network supported by eleven distributors. The conference served as an opportunity for DMA’s Superior Operator Partners to recognize distributor members who have gone above and beyond in 2024.
The Large DC of the Year field faced stiff competition. There were more DCs in this category, more votes per DC and tighter scores at the top. In fact, there were three in a very close race. The two runners-up were Nicholas Salt Lake and Ben E. Keith Missouri. Both received incredibly high scores and are certainly very appreciated by their customers.
The winner of the Large DC category was Ben E. Keith Fort Worth. This distribution center received the highest score in any category and was a runner up in last year’s competition, as well. Ben E. Keith Fort Worth received more #1 votes than any other DC and one of the highest scores for commercial support, which was ranked as the most important area of focus by customers. One customer commented that Ben E. Keith Fort Worth’s strength was “the ability to provide excellent customer service and operational support, characterized by quick resolutions and strong communication, especially during challenging times.”In the category of medium sized distribution centers, this year’s race featured two honorable mentions, GFS Kannapolis and Martin Bros. The Martin Bros. DC actually had nearly identical scores in the performance criteria as the winner, but just a couple fewer #1 ranking votes than the DC receiving the award. The winning DC was DiCarlo Foodservice. DiCarlo is a first-time winner, just edging out the runners up in this category but with strong scores in account and commercial support.
The final DC award was presented to one of the up-and-coming centers – because they’re usually just getting started in the DMA network. There were fewer candidates considered in this category compared to last year, which is a sign of growth within the network. The two runners-up in this category were Ben E. Keith Florida and Shamrock New Mexico, both of whom we will be keeping an eye on next year!
The winner of the small DC category was BiRite. Their top score in “ability to support the brand and never disappoint a guest” made the difference in this group.
The Distribution Center awards have evolved over the years, but the criteria has been consistent – each customer rates each distribution center on seven different categories of service. Those results are then compared to similarly sized DCs throughout the national network. It’s important to note that “size” of the DC is relative to the scale of the DMA business that particular house serves. The criteria for award winners focused on the average score of those questions. However, improvement versus the prior year score, as well as the number/size of responding customers, was also considered.
DMA also recognizes performance above and beyond the norm by one of the distributor customer team members. The votes are cast by the DMA team and consider all aspects of the role. This year’s winner received more first-place votes than anyone in the past two years but was closely followed by one of last year’s finalists. That honorable mention goes to Shamrock’s Jo Hart, who moved up to second place from last year’s third-place ranking. Another honorable mention goes to Derek Taylor from Ben E. Keith as a new finalist, moving into the top three from last year’s top five finish. It’s worth noting that 28 different reps received votes across the membership, indicating broad support and great relationships.
Troy Leatherman from Gordon Food Service took home the prize for Account Manager of the Year. Comments about Troy included, “… a DMA Advocate with a balanced approach to account management; always available when needed; aligns with DMA’s values and is a true advocate.” Additionally, he was recognized for, “leadership and approach … a great partner for DMA and our customers!”

It appears that retired NFL icon Peyton Manning has quite the sweet tooth, given his sweet new sweepstakes with Nestlé Toll House that aptly launched yesterday on November 6, which just so happens to be National Nacho Day.
The prize? Cookie Nachos Kits!
Instead of the tortilla chips found in standard nachos, cookie nachos are built on a foundation of chocolate chips – well, chocolate chip cookies.
While the innovative dessert mashup has been around for a while, inspiring more than 3.7 million #CookieNachos TikTok videos in recent years, the partnership marks the first time a brand has dipped its hand into the proverbial cookie jar.Delicious Details
The new kits are equipped with chocolate chip cookie dough, three varieties of morsels, a set of chip-shaped cookie cutters, and a $25 gift card to purchase “nacho-inspired” toppings.
For those unsure of where to start on that front, Nestlé has plenty of ideas:Dollops of sour cream (AKA white chocolate morsels)
“Black beans” made with semi-sweet chocolate morsels
Maraschino cherries for tomatoesHowever, the Cookie Nachos Kits won’t appear on store shelves anytime soon.
For now, they’ll only be available via a giveaway that bridges the gap between the two distinct delicacies, beginning on National Nacho Day and concluding on National Cookie Day, which is December 4.Tasty Traditions
In a recent press release, Manning shared a bit of the motivation behind the sweet new collab:
Nestlé Toll House chocolate chip cookies hold special memories for me from my football career, when my wife Ashley used to bake them for every training camp, and from special time spent with my family. Its exciting to partner with the Nestlé Toll House team to help families, friends, teammates, and others inspire new traditions going forward, said Manning.
Meanwhile, the senior marketing manager for the cookie maker, Melanie Knoke, said: “Our partnership with Peyton Manning is the perfect way to celebrate the holiday and football season, made even sweeter with the ultimate shareable snack – Cookie Nachos.”The Food Institute PodcastRestaurant results for the second quarter weren’t stellar, but people still need to eat. Are they turning to their refrigerators, or are restaurants still on the menu for consumers? Circana Senior Vice President David Portalatin joined The Food Institute Podcast to discuss the makeup of the current restaurant customer amid a rising trend of home-centricity.