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For a retailer to thrive, they must distinguish themselves from competitors, unfortunately, Kmart doesn't have the low prices like and Walmart or the quality items like at Target. Kmart is stuck in between. This hurts their ability to make money. … This statements will have a short-term negative impact on this entity, which subtracts from its value. This qualitative factor will lead to an increase in costs. This statement will lead to a decrease in profits.