Ann Arbor, MI, Feb. 19--When it comes to customer satisfaction, Kmart Holding Corp. still sits at the bottom of the barrel among department and discount stores, according to a University of Michigan study released Wednesday.
Detroit Free Press reported however that Kmart officials say they are improving customer service and they expect the company to move up in the rankings this year.
For the second year in a row, Kmart scored 70 out of 100 on the American Customer Satisfaction Index, compiled by U-M, the American Society for Quality of Milwaukee and CFI Group of Ann Arbor.
The score--calculated from more than 70,000 consumer surveys nationwide--was the lowest in the category for department and discount stores. Kohl's Corp. led with a score of 79; J.C. Penney Corp. was the most-improved scoring 78, up 6.8 percent from the year before, and Target Corp.'s Target and Mervyn's stores and Wal-Mart Stores Inc. scored 77.
The discount and department store sector's average score was 76. The average for all industries was 74, the highest since 1995.
While only 9 points separate Kmart's score from Kohl's, Claes Fornell, a professor and director of the National Quality Research Center at U-M, called the performance a disappointment.
"If you want to put a positive spin on it, Kmart didn't drop any further this year, but that's not good enough," he said.
Customer satisfaction has been a top priority at Kmart since the Troy-based retailer emerged from bankruptcy protection in May.
Recent changes at the company's 1,500 stores have included more self-checkout stations, a more streamlined inventory, cleaner stores, better lighting and wider aisles.
"Our store managers and store associates are working toward improving customer service and our headquarters workers are working toward improving the store experience," said Jack Ferry, a Kmart spokesman.
Ferry also noted that between 2002 and 2003 Kmart closed 600 stores, which could have negatively affected the survey results. "In 2004 we're going to be a much more stable company," he said. "It will be interesting to see what this survey says a year from now."
Kmart shoppers like Darlene Mauer of Highland hope the results improve this year. In October 2002, Mauer told the Free Press she was willing to stick by Kmart "as long as they don't blow it."
Sixteen months later, Mauer is ready to shop elsewhere. "Over and over again they are blowing it," said the mother of two.
Mauer said she is tired of getting lured into the store by advertised items, only to find empty shelves. Recently she had trouble finding curtains, pop and carpet.
"I end up making unnecessary trips," she said. "Now I'm about ready to cut them out of my trip altogether. I don't know why I keep trying to go there. I guess I don't really want to see them go."
Fornell said he's confident Kmart will pull through these troubling times and that the company can definitely improve its survey score just as Penney did in 2003. "If they rally the troops, it should not be impossible to do better."
