KMART PLUGS IN: Kmart’s new interactive home-shopping service on America Online is open for business.
The service, called Kmart Home Delivery, has been available to America Online subscribers in the Phoenix area as a test for about a month. It allows armchair shoppers to view Kmart merchandise on their computer screens and place electronic orders from over 8,000 products, including apparel, health and beauty items, home furnishings, electronics and prescription drugs.
Orders are filled by Kmart employees at local stores and delivered the same day. There is a $5.95 service fee for each order; the pharmacy charges a $2 service fee.
A Kmart spokeswoman said the company’s tests typically last six months to a year. If the home-shopping test is successful, it could roll out to select markets, she said.
Separately, this week Standard & Poor’s revised its outlook on Kmart to negative from stable and affirmed its ratings on about $3.7 billion of debt. The rating agency said its revision is based on a 31 percent earnings decline in Kmart’s core domestic discount store business in the first 39 weeks of 1994.
l ROSE’S NEXT CHAPTER: A North Carolina bankruptcy judge has confirmed the reorganization plan of Rose’s Stores Inc., a 113-unit discount chain that filed for Chapter 11 in September 1993.
The plan, which received the support of better than 96 percent of Rose’s creditors, will allow the retailer to emerge from Chapter 11 by April 30, 1995, the company said.
According to the terms, Rose’s secured creditors will have their claims reduced to $27 million from $108 million. Unsecured creditors are to receive all of the common shares of the reorganized company.
Rose’s existing shareholders will receive warrants to purchase up to 30 percent of the reorganized company’s stock.
l ELMIRA OUTLET TEST: Fox Promotions, a retail consultant and liquidator, began testing its first outlet store last week in Elmira, N.Y.
The 25,000-square-foot unit, called Fox Nationwide Liquidators Outlet, occupies the first level of the former Iszard’s department store building.
Fred Marech, president of Fox, said the site is being leased on a month-to-month basis and carries women’s, children’s and men’s apparel, gift items and seasonal merchandise.
The test is expected to run for several months.