So I am an employee of Kmart and happened to see this memo pass through my local store. I can't repeat it verbatim, and I couldn't get a picture of the message due to being constantly on camera.

Basically the memo stated the "exit strategy" for the games section in retail stores. Stating that this was in essence brought on by having overstocked shelves (bwa hahaha) and not enough customers. However Kmart.com, Sears.com, and Shopyourwayrewards.com, would continue to sell games and consoles to meet peoples needs. So they're switching focus from retail to online.

The message continued to explain to sell down merch and fill the empty space with other merch. Eventually to clearance out the whole section if it didn't sell down.

So firstly, wait. Just wait and deals will come.

As a customer I have to say that Kmart has had nothing but crappy deals for the past few years. (On games) Focusing on SYWR points and mediocre sales to bring in customers rather than staying competitive with Amazon, Walmart, and pretty much any retailer that will actually give a deep discount. Therefore they have shot themselves in the foot and driven away most business. As a result of that they face what I call "the burger problem".

When Kmart doesn't get games in to sell, they can't sell them. But instead of getting more stock I guess they just say "X person doesn't want Y game". This is just like a survey of a small town saying no one in the town likes burgers, because no one eats burgers. Only to find out there is nowhere to eat burgers in the first place.

Why doesn't Kmart get games to sell? I don't know if Kmart as a whole does this, or just my store, but we don't get games on a truck. We get them in sporadically via UPS, and never before release date. We get limited quantities and then get restocks oddly. Over the holidays I got dozens of calls for titles we wouldn't get in for weeks. During Christmas we only got a handful of Xbox Ones and no PS4s, and since then only one Wii U and one 3DS XL, which may have been returns. In short they could be making money, but there is just some really bad policies in place that leave plenty of customers walking out the door.

Then on top of that we barely make any money in markup. We buy games basically at cost, given only a few dollars. I've seen games we bought for 58.50 selling for $60. Same for all peripherals, a 20 charger may have costed 12 for us. I was really shocked about this when I first started looking into it. Whereas other sections of the store have a markup that's understandable.

So now after all this poor management, they're getting rid of what has always been the best part of the electronics section - games. I remember there being something said about "better serving our customer's needs", the problem in the first place was that they didn't serve our needs. For the most part they were poorly stocked, AND THIS HAS KILLED THEM THE MOST.