Attention Kmart Shoppers…

By PlanetLaundry staff | Jun 24, 2010

Earlier this month, Kmart opened a 2,824-square-foot self-service laundry inside its retail location in Iowa City, Iowa. Called Kwash, the new laundry features 31 washers and 30 dryers, as well as free WiFi access, a wash-dry-fold service and a children’s play area.

Kimberly Freely, a spokesperson for Sears Holding Corp., which is Kmart’s parent company, discussed the company’s new venture.

How did this concept initially come about?

I can’t talk about it specifically. However, we determined that this was something we wanted to test in this facility. We had the space, and we felt that it would be a good synergy for the Sears and Kmart concept. And, of course, we thought it would be a good convenience for our customers.

Why coin laundries and not some other business model?

We test a lot of concepts. We have optical centers [in Kmart stores]. We have hearing aide centers. We offer different products. This is just another one of those lines.

What were some of the other ancillary businesses you’ve tested?

I can’t go into our other strategies.

What advantages does the Kwash concept offer the Kmart store, as well as its customers?

Within this facility, we also have a mygofer.com store. Customers can go online to mygofer.com, because we have free WiFi in the store – and while they’re at the laundromat, they can shop online, and their items can be ready as they’re doing their laundry.

Items can be picked up within the hour. We thought that would be a nice synergy for people doing their laundry. It’s like a personal shopping service; the associates there will pick up your items for you, while you’re doing your laundry. There is a register right there within the laundry facility, where customers can pick up their items.

Obviously, we also have laundry products available for our customers’ convenience, while they’re doing their laundry. If they need detergents, baskets or other products, we have them available at the Kmart facility. Again, we thought that also provided a good synergy.

Will the Kwash store be attended?

Yes, it’s a fully staffed facility. There will be a laundry attendant on duty at all times. And the Kwash store hours will coincide with the hours of the Kmart store.

Can you briefly describe this new store?

We have the largest capacity washers in the area. We offer everything from 18- to 80-pound washers.

It’s a card-operated store, which offers the “Wash to Win” loyalty program. There also is free WiFi access. There is a wash-dry-fold service. There is a children’s play area.

As I mentioned earlier, there is online shopping through the mygofer.com program – anything from laundry detergent to prescriptions at the Kmart pharmacy.

Why did you choose to go with a card-operated laundry?

We went with the cards so that we could implement the “Wash to Win” program. We wanted to be able to offer a loyalty program that would encourage customers to come back.

How will Kwash differentiate itself from the other laundries in the market?

Our larger equipment is definitely a big plus for us. And the mygofer.com option is a big one for us. The fact that you can do your shopping while you’re doing your laundry will be huge for our customers. And if they forget something, being able to pick up laundry products right there in the store is huge as well.

How was Iowa City chosen as the test site?

We thought the demographics fit well with our current customer demographics. Beyond that, we don’t disclose how we chose our demographics.

This is being labeled a ‘test store.’ How long will the test last?

I can’t go into that. It’s a ‘concept store.’ We don’t put a dead-stop date on that.

So, there is no timeline as to how long you will evaluate this concept?

No.

What are the keys to the success of this project?

I don’t know if I can say. That [would be like] trying to put it into a box. We’re going to have to see how it goes and make adjustments accordingly.

What will determine whether or not this concept is successful?

I don’t think we would disclose that.

If successful, what are the long-term plans for this concept? Are there discussions of rolling out a national Kwash chain?

In any kind of test, we’re always hopeful, but at this time, this is the only one.

So, there are no plans to develop this into a national chain?

We don’t comment on future strategies.

What challenges would a national chain pose?

I’m not going to comment on that. I’m not going to speculate on where we would go with it.

As you surely know, national laundromat chains have been attempted in the past. How would a Kwash chain be different from those that went before?

We have 1,300 existing Kmart locations. And we have the mygofer.com concept. So, we already have an existing structure.

Kwash Equipment Mix:

Speed Queen 18-pound frontloaders, $1.97
Speed Queen 30-pound frontloaders, $2.97 (two washes saves $1)
Speed Queen 40-pound frontloaders, $3.97
Speed Queen 60-pound frontloaders, $5.97
Speed Queen 80-pound frontloaders, $7.77
Speed Queen 35-pound stack dryers, 39 cents for 12 minutes
Speed Queen 45-pound stack dryers, 45 cents for 14 minutes
 
Wash-Dry-Fold Service:

Add 75 cents per pound for Express Service.