Sep 24, 2024, 12:00 AM
Sep 23, 2024, 12:00 AM

Kmart's last full-size store in the U.S. closes

Tragic
Highlights
  • The last full-size Kmart store in the mainland U.S. is closing on October 20 in Bridgehampton, New York.
  • The decline of Kmart is linked to its 2005 merger with Sears, which led to a focus on asset liquidation rather than store investment.
  • This closure represents the end of Kmart's presence as a major discount retailer in the U.S. market.
Story

Kmart, a once-prominent discount retailer in the U.S., is set to close its last full-size store located in Bridgehampton, New York, on October 20. This closure marks a significant moment in the decline of a brand that was once a leader in the retail market. The store's employee confirmed the closing date, while the corporate owner, Transformco, did not provide comments regarding the situation. The decline of Kmart can be traced back to its 2005 merger with Sears, which was orchestrated by hedge fund manager Eddie Lampert. This merger, valued at $11 billion, prioritized asset liquidation over investment in the stores, leading to a bankruptcy filing in 2018. At that time, Kmart had already seen a drastic reduction in its store count, from approximately 1,400 to just 191. The competition from larger retailers like Walmart and Target, which offer a wider range of products including groceries, further exacerbated Kmart's struggles. The rise of online shopping also contributed to the brand's inability to adapt to changing consumer preferences. While Kmart still operates a small convenience store in Miami and has locations in Guam and the U.S. Virgin Islands, these do not reflect the full range of offerings that once characterized the brand. The closure of the Bridgehampton store signifies the end of an era for Kmart, highlighting the broader challenges faced by traditional retailers in a rapidly evolving market.

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