An Iowa expert on the retail industry says K-Mart’s bankruptcy could have a long-term impact on some Iowa communities. Iowa State University economist Ken Stone says there are six or eight Iowa communities in which the K-Mart store is a shopping anchor. He says those cities would take an economic hit if chain can’t recover from bankruptcy, as shoppers would travel to larger cities nearby to do their shopping. Stone says K-mart is a victim of a market glut.He says there are too many stores and the weaker ones fall by the wayside. Stone says the retailer has had trouble competing in part because of several changes in management.For example, the current manager tried to compete with Walmart’s “low prices every day” pledge while still advertising sales. Stone says the chain needs a better strategy for defining itself against other large retailers.He says the company’s mixed up on what image it wants to project, and that confuses customers. Stone’s not optimistic K-Mart can keep the blue light rotating. Stone says if K-Mart closes, it would impact all consumers by decreasing the competition that helps keeps prices down.
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