New drugs help boost stock market: Kmart
Kmart, the retail giant that is also home to Costco and Walmart, is investing more than $10 billion in a range of health and wellness products to boost its stock value.
The investment comes as the company has been hit with a number of scandals that have caused a steep decline in earnings, and a slump in the company’s business.
Kmart said in a statement Monday that the investments will support a broad portfolio of new and established products.
In addition to the investments in healthcare, Kmart will invest in new product introductions to broaden its product portfolio, as well as in emerging technologies and emerging products to further diversify its portfolio.
“We’re confident in our long-term health and fitness plans, and in the long-range of the business, as we are driven by strong growth,” the company said in the statement.
Kraft said in an emailed statement that the investment “has not been announced, but it will be a huge boost for our business, which will be strengthened by the ability to leverage the power of our global network of retailers.”
The investment is part of a broader plan to bolster Kmart’s stock, which has been falling in recent years.
Last year, Kampers stock plunged more than 50% on news that it was considering selling its drug-delivery business to the pharmacy chain, which is now owned by Kroger.
The stock has gained more than 20% in 2017.