Kmart, once a leading force in American retail, is closing its last full-scale store in the continental United States on October 20, 2024.
The Bridgehampton, New York location will soon join the long list of Kmart stores that have shuttered over the past two decades. This closure will leave only a small Kmart store in Miami, Florida, as well as a handful of stores in US territories, including Guam and the US Virgin Islands.
Kmart Employee Confirms Store Closure
Denise Rivera, an employee at the Bridgehampton store, confirmed the closure on Monday (September 23). She shared the news over the phone but noted that the store's manager was unavailable for comment.
Despite requests for further information, Transformco, the company that owns Kmart, has not provided an official statement regarding the store's closing. Transformco acquired Kmart's assets in 2019 after its parent company, Sears Holdings, filed for bankruptcy.
At its peak, Kmart had more than 2,000 stores across the US, making it one of the nation's most popular retailers. The chain was famous for its "Blue Light Specials," short sales announced over the public address system while a blue light flashed in-store to draw shoppers to discounted items.
However, Kmart has faced growing competition from bigger retailers, such as Walmart and Target, since the 1990s. These competitors offered either lower prices or trendier product selections, making it difficult for Kmart to maintain its market share.
Kmart's financial struggles intensified in 2002 when it filed for Chapter 11 bankruptcy, a significant moment as it became the largest US retailer at the time to take such a step.
The company announced plans to close over 250 stores, beginning a slow but steady decline. Many experts point to the retailer's failure to adapt to changing consumer preferences and the rise of online shopping as key reasons for its downfall.
Following the 2005 merger between Sears and Kmart, the two iconic retailers were expected to thrive together. However, the merger, spearheaded by hedge fund manager Eddie Lampert, proved disastrous. The $11 billion deal focused more on liquidating real estate and other assets, rather than revitalizing either brand. As a result, both Sears and Kmart suffered, eventually leading to Sears Holdings' bankruptcy filing in 2018. When Transformco acquired the assets, the future for the remaining stores looked grim.
In the years following the bankruptcy, Kmart and Sears continued to close locations across the country. By 2023, only a small number of Kmart and Sears stores remained operational, with even those struggling to compete in a retail landscape dominated by larger chains and e-commerce.
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Kmart Has One Remaining Store
Kmart's last remaining store in Miami offers a more limited selection of products than its former locations, focusing on a compact, convenience-store format. Although the Miami location remains open for now, it doesn't reflect the full-scale Kmart experience that many customers remember.
According to CNN, the retailer's iconic "Blue Light Specials" began in 1965 and became a hallmark of the Kmart shopping experience. For 15 minutes, customers would be alerted to special discounts via announcements and a flashing blue light in the store.
Although the Blue Light Specials ended in 1991, Kmart made several attempts to revive the promotion over the years, but these efforts couldn't bring back the company's popularity.
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