For a long time, Kmart was a prominent retailing leader and innovator. According to its Web site: “More than one hundred years ago, Sebastian Spering Kresge opened a modest five-and-dime store in downtown Detroit … and changed the entire landscape of retailing. The store that Kresge built has evolved into an empire of more than 1,500 stores and an Internet presence that reaches millions of customers. The Kmart name has become a symbol of Americana, standing for quality products at low prices.”

Unfortunately, the performance of Kmart has been weak for several years now — for more reasons than the impact of the Great Recession on shopping. Today, there are questions about whether Kmart can even survive, let alone be a leader again.

Dana Mattioli writes for the Wall Street Journal: “As Eddie Lampert settles into the corner office of Sears Holdings Corp. [the parent company of Sears and Kmart], the new chief executive is likely to again come face to face with Kmart, the retailer he bought out of bankruptcy. The chain, which sells everything from apparel and home goods to consumer electronics, has stumbled in recent quarters because of increased competition, missteps in its grocery business, and turf battles in the urban areas where it has traditionally been strongest. Sears Holdings faces challenges across its operations, with sales in decline and credit analysts concerned about its ability to generate cash. But the namesake Sears chain’s domestic losses have narrowed, and it has defensible positions in such categories as appliances and fitness equipment. Meanwhile, Kmart, which accounted for about 37% of the holding company’s 2011 revenue and is the asset upon which Mr. Lampert built his department-store empire over the past decade, is watching its sales move in the wrong direction.”

Click the image to view a WSJ video about Kmart.