With Kmart's filing of Chapter 11, the two Muncie stores are now in competition with other Kmart vendors to stay open.
According to CNN, Kmart, the second-largest discount retailer in the country, will review the performance of each of its stores with the goal to close those which are unprofitable. Analysts, CNN reports, have speculated the company could close up to 500 stores.
"All their stores, on average, have not been doing that well," said James Lowry, a professor in the department of marketing.
Managers and employees at the Muncie Kmarts, located at 1501 E. McGalliard Rd. and 4111 S. Walnut St., would not comment about the filing, the largest retail bankruptcy in the United States. They wouldn't talk about their stores' futures, either.
The corporate relations office was not taking phone calls, instead routing all inquiries to Kmart's Web site, www.bluelight.com. A recorded message said no decisions about individual Kmarts had been made yet.
According to Lowry and James Schmuttee, the chairman of the accounting department, there are signs customers can look for to gauge a business' health. Lowry said one obvious clue is if the shelves are being restocked. If they are not, Lowry said, it may indicate the franchise is no longer committed to the local business.
Customers said they have not noticed any changes in stock in the McGalliard store. Jeannyce Cornett, who said she shops at the Walnut location daily, said she noticed there were fewer books. Marie Holliday, Eva Smith and LaTonda Stigler shop there at least once a week, and they have not seen any differences.
"I like to shop here," Smith said. "I think they have a lot more items.
"I hope they don't close it down. I like it here."
Stigler went to Kmart Tuesday after hearing about the bankruptcy. She said she was hoping to get some bargains because it was closing. She said there were none.
Stigler, like Smith and Holliday, hope the McGalliard location is spared.
"It's really convenient," she said. "It's close; and it's convenient for me."
There could be some factors, however, that work against the McGalliard location, Lowry said. He said it's possible Kmart could evaluate a store's future by considering its competition, and the Kmart on McGalliard faces competition from the Muncie Mall, Wal-Mart and Target.
Lowry said the corporation could also look at customer demographics, sales patterns and growth and earnings.
"Only time will tell," Lowry said. "It's hard to say."
According to CNN, all of Kmart's 2,114 stores were open. Also, according to the report, all credit cards, gift certificates and store credits would be honored.
The announcement of the bankruptcy came after a series of financial setbacks for Kmart. On Monday, food distributor Fleming Cos. said it had stopped most shipments to Kmart, which missed its weekly payment to Flemings of $78 million.
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