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NEWS
[ Wednesday, Jan. 23, 2002 ]

Students react to Kmart bankruptcy

Collegian Staff Writer

Following the Kmart Corp. decision yesterday to file for Chapter 11 bankruptcy, Penn State students offered insight as to why they felt the local Kmart, 100 Valley Vista Drive, might be struggling.

"There are two Wal-Marts in the State College area as opposed to one Kmart," said Jessica Fitterling (sophomore-biobehavioral health). "Wal-Mart is growing and taking off so quickly. When you sit down and think about it, this was inevitable."

Kmart's holiday sales were lower than hoped, while Wal-Mart reported December monthly sales were up 8% from a year ago, according to an Associated Press report.

"I don't even know where Kmart is located in State College," Stephanie Gerace (freshman-information science and technology) said. "It's more convenient to go to Wal-Mart because I can get there on the bus."

Gerace added that she has no need to go to Kmart because she rarely has problems finding what she wants at Wal-Mart. The nation's largest retailer also appeals to some students because it is open around the clock.

"Kmart closes early and I never do anything until after ten," Gerace said. "I usually do my shopping at Wal-Mart in the middle of the night because that's when I'm awake."

Fitterling also does her share of late night shopping at Wal-Mart.

"When it's late and there's not much else to do, my friends and I often just pick up and head to Wal-Mart," Fitterling said.

Although many students flock to Wal-Mart, Kmart is preferred by some.

"I like Kmart much better and I believe Wal-Mart needs to be looked into as a monopoly," Dan Deiter (sophomore-secondary education) said. "To be honest though, I do shop at Wal-Mart at Penn State because I have no clue where Kmart is located."

Despite Kmart's bankruptcy, students like Deiter who favor Kmart will be able to continue patronizing the company.

"All 2,114 stores are open for business," Kmart said in a press release. Kmart faces reorganization and said it will only close weak stores in its attempt to emerge from bankruptcy by 2003.

Local Kmart officials declined to comment.

Established as a five-and-dime store in downtown Detroit over 100 years ago, Kmart became the first major retail chain in the history of the United States. Today, the third largest retailer in the business is now the largest retail chain to ever file for Chapter 11.

The Associated Press contributed to this report



PHOTO: Lea Anne McGoldrick
Customers walk across the parking lot of Kmart, 100 Valley Vista Drive in State Collge. Kmart is the largest corporation in history file chapter 11 bankruptcy.
 

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Updated: Wednesday, January 23, 2002  1:27:17 AM  -4
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Created: Wednesday, May 07, 2008  6:36:14 PM  -4