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supplies are not there, customers lose faith in their supplier and look elsewhere for the merchandise. Perhaps the biggest problem K-mart has is its ability to keep stock on the shelves. K-mart in 2001 was able to keep its goods fully stocked on shelves only 86% of the time. In the industry, anything less than 90% is considered unacceptable. Wal-Mart, however, runs close to 100%. Wal-Mart and others have emphasized "everyday low price" selling, which is more predictable for both customers and the distribution system. Inventory, for such retailers as K-mart is having a negative effect. On the average, K-mart's inventory swells up as sales fall...
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