Kmart, once one of America’s most iconic department store chains, is preparing to shutter its last full-size store in the United States this fall. The closure signals the near end of an era for the once-dominant retail giant.
Final full-size store in New York to close
The Bridgehampton, New York, location—situated on the South Fork of Long Island—will officially close its doors on October 20, an employee confirmed to WJAR. This closure marks the end of Kmart’s large-format stores, a significant shift for the retailer that once operated thousands of locations across the U.S.
The real estate investment trust Kimco Realty Corp, which owns the shopping center housing the Kmart location, also confirmed the closure, according to Newsday. However, Kimco did not provide details on the reasons behind the decision.
Miami location remains but in a smaller format
While Kmart’s Bridgehampton store will close, a smaller location in Miami, Florida, will remain open. However, this location is a far cry from the department stores of Kmart’s heyday, operating more like a convenience store akin to CVS, according to an August report by the Miami Herald.
Despite the closures within the continental U.S., Kmart will continue to operate several stores in U.S. territories, including the U.S. Virgin Islands and Guam, as WJAR reported.
A retail giant’s humble beginnings
Kmart’s roots date back to 1899, when Sebastian Spering Kresge opened a modest five-and-dime store in Detroit. Kresge’s venture quickly expanded, and by 1912, the S.S. Kresge Company boasted 85 stores across the U.S., according to Transformco, the investment firm that now owns Kmart. The first official Kmart store opened in Garden City, Michigan, in 1962, and 17 additional stores followed that same year. By 1966, Kmart had 162 locations nationwide and was well on its way to becoming one of America’s largest discount retailers.
Kmart’s peak and decline
At its peak in the 1990s, Kmart operated 2,300 stores across the U.S. and employed over 350,000 people. However, by 2002, the company filed for Chapter 11 bankruptcy protection, marking the beginning of its decline. In 2005, Kmart merged with Sears Holdings, and the two struggling retailers sought to survive under a combined entity. Illinois-based Transform Holdco LLC, known as Transformco, acquired the assets of Sears Holdings in 2019 and has since been responsible for managing the remaining Kmart and Sears locations. Kmart’s closure of its last full-size store in the U.S. symbolizes the broader challenges faced by brick-and-mortar retailers in the digital age. While Kmart was once a household name, the company’s influence has waned, leaving behind only a few smaller stores and a legacy of retail history.
