Some analysts have even suggested that Wal-Mart is cautiously holding its site back knowing it can't risk disappointing customers with subpar online service. For starters, the site isn't relying on Kmart to fill its orders. Goldstein said Kmart's distribution systems have too many problems at this point, a fact the retailer's new chairman Chuck Conaway is well aware of and quickly addressing with significant technology investments. Experts say that could be at least two years. The plan is to concentrate on Kmart-brand exclusives and only the most popular gift items, they say.
Returns are another big problem that have plagued holiday Internet shopping sites.
And that's a precious position no one at Kmart wants to relinquish.