The world’s second-biggest sports equipment retailer, Kmart, has admitted that it is failing to sell its products to the masses.
In its first quarter, the retailer reported a loss of $13.7m.
That included a loss for the period of April-June this year of $9.2m.
Kmart, which also owns J.C. Penney, Wal-Mart, and Best Buy, reported a net loss of just $6.3m for the year.
That’s a far cry from the $9m it made in the previous three months of the same period.
Karmaparts sales fell 8 per cent in the first quarter of this year.
Its sales for the full year were just $15.5m, compared with a net profit of $31.9m a year earlier.
Karma, the online retailer of clothing and footwear, saw its sales plummet by 12 per cent, while Target saw a decline of 7 per cent.
It’s hard to say why this is happening, but it could be due to the introduction of new clothing and accessories and the introduction, by some companies, of more expensive sporting gear.KMart has also struggled to make money from its sports equipment business.
The retailer reported profits of $18.6m in the year to June, down from $32.9 million a year ago.
Kellogg’s and Target both reported a profit of just a quarter of what they made last year.
The combined companies had earned $18 billion in profit for the first time since 2008.
The retailer also reported a $941m loss for 2016.
That compares with $1.7bn in profit from 2015.
The result has left the retailer in a state of financial crisis.
In the past year, it has slashed prices on sportswear, which has left many customers unhappy.
Some customers say that the retailers lack a clear strategy for how to get their sportswears back into the hands of consumers, which have been sold off or stolen by organised crime.
The retail giant has announced a new strategy to get more of its products back into homes.