Kmart, a once-dominant household name in American retail, will soon close its last major store in the continental U.S. The Bridgehampton, New York, location; Kmart’s last full-size store will shut its doors permanently on October 20, 2024, marking the near-total disappearance of a retail empire that once boasted over 2,000 stores nationwide.
This announcement leaves only one smaller Kmart store in Miami, Florida, and a few international locations, including those in Guam and the U.S. Virgin Islands, as remnants of a brand once synonymous with American bargain shopping.
Founded in 1962 in Garden City, Michigan, Kmart quickly grew into a retail powerhouse. At its peak, the chain operated more than 2,300 stores and was the 15th largest corporation globally. The company attracted millions of American shoppers with its discount pricing model, offering affordable products across different categories, including home goods, apparel, and electronics.
Kmart’s innovative “Blue Light Specials” became legendary, and at one time, its revenue reached a staggering $37 billion. However, the once-thriving business began to experience a steady decline in the early 2000s.
The fall of a retail empire
Kmart’s fall can be attributed to multiple factors, but primarily its inability to adapt to the shifting retail landscape. With the rise of competitors like Walmart and Target, which offered either lower prices or more fashionable products, Kmart began to lose its foothold. In 2002, Kmart filed for Chapter 11 bankruptcy protection, becoming the largest U.S. retailer to do so at the time. This bankruptcy led to the closure of over 250 stores and the layoff of thousands of employees.
Edward Lampert, a hedge fund executive, acquired Kmart and merged it with Sears in 2005, forming Sears Holdings. The merger aimed to revive both ailing brands but struggled in the face of a rapidly evolving retail environment. The 2008 financial crisis and the aggressive rise of e-commerce giants like Amazon only deepened the company’s woes. Sears filed for bankruptcy in 2018, further diminishing Kmart’s presence.
The final closures
As Kmart’s financial struggles worsened, store closures became a regular occurrence. The company’s presence dwindled, and its remaining U.S. stores were closed or reduced in size. In recent years, only a handful of locations survived, each met with growing financial pressure and reduced foot traffic.
The closure of the Bridgehampton location on October 20 marks the end of Kmart’s footprint in the continental U.S., leaving just the Miami store, which is notably smaller and serves a diminished customer base. Kmart’s Miami location, according to reports, is approximately the size of a neighborhood pharmacy and occupies what was once the garden section of a larger store. Most of the Miami Kmart’s original space has been leased to a home goods store.
In addition to the Miami store, only a few Kmart stores are left in Guam and the U.S. Virgin Islands. These locations offer a glimpse of the once-powerful chain that, just a few decades ago, dotted the U.S. retail landscape.
Reasons for the final closure
The remaining Kmart stores struggled to stay competitive, especially against the likes of Walmart, Target, and Amazon. Kmart’s pricing strategy failed to match the low prices offered by Walmart, while Target’s appeal to younger, more fashion-conscious shoppers left Kmart looking outdated. Online retail giants like Amazon only added to Kmart’s struggles by making physical stores increasingly obsolete.
Kmart’s attempts to compete in the e-commerce space, including its much-publicized “Ship My Pants” campaign, did little to turn the tide. The chain was unable to differentiate itself from competitors in a meaningful way, which ultimately contributed to its decline.
Though the closure of the Bridgehampton store is an important moment, it is not the complete end for the Kmart brand. The remaining stores in Miami, Guam, and the U.S. Virgin Islands continue to operate, albeit in much smaller capacities. However, it’s unclear how long these locations will remain open, as declining sales and the rise of digital shopping platforms continue to threaten brick-and-mortar retail businesses.
Kmart’s owner, Transformco, has not commented on the future of these stores, and many experts believe that the final closure of Kmart’s remaining locations is inevitable, marking the ultimate demise of what was once a retail giant.
