Several car companies have offered to make monthly payments for new auto buyers who lose jobs. Hyundai even has a program to take some vehicles back if their owners can’t find work.
The K-Mart division of Sears (SHLD) is joining the parade of firms hoping to aid those down on their luck. According to the FT, the program will start in Michigan, the hardest-hit state where joblessness is above 14%. It is also the home of K-Mart’s former parent.
The paper writes that “Kmart says it will issue people who are registered as unemployed in the state a “Smart Assist Savings” card, valid for six months, entitling them to 20 per cent reductions on Kmart’s private label goods.”
The new savings package is not completely selfless. K-Mart caters to the lower end of the middle classes, a segment of the economy that has been especially hard hit as corporations cut costs. K-Mart has probably lost many of its customers completely and believes that the new incentives will bring these people back.
The offer is impressive even if K-Mart ultimately makes money on the unemployed customers. Many of the jobless in Michigan will not find work in the state–ever. They are faced with relocating even though they may not have the money to move. Sears and K-Mart get a gold star for outstanding behavior.
Douglas A. McIntrye
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