End of an Era: Major Announcement for Former Retail Giant

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The last full-size Kmart store in the continental United States is set to close its doors forever, marking the end of an era for a once-dominant retail giant.

At a Glance

  • The last full-size Kmart in Bridgehampton, NY will close on October 20, 2024.
  • Only one smaller Kmart store will remain in Miami, Florida.
  • Kmart once operated 2,300 stores across the U.S. at its peak.
  • The chain’s decline is attributed to competition and failure to modernize.
  • Kmart still operates stores in U.S. territories like Guam and the Virgin Islands.

The Fall of a Retail Giant

Kmart, once a cornerstone of American retail, is witnessing the closure of its last full-size store in the continental United States. The Bridgehampton, New York location, which has served the Hamptons community for 25 years, will shut its doors on October 20, 2024. This closure marks a significant milestone in the decline of a brand that was once synonymous with affordable shopping and iconic “Blue Light Specials.”

Founded in 1899 by Sebastian Spering Kresge, Kmart expanded rapidly under Harry Cunningham’s leadership in the 1960s. The company pioneered the concept of discount retailing in the United States, growing to operate 2,300 stores and employing 350,000 people at its peak. However, the retail landscape has changed dramatically since Kmart’s heyday, with the rise of competitors like Walmart and Target, and the advent of e-commerce.

A Series of Setbacks

Kmart’s decline was not sudden but a result of a series of missteps and market changes. The company filed for bankruptcy in 2002, closing many stores in the process. In 2005, Kmart merged with Sears in an $11 billion deal, forming Sears Holdings Corporation. This merger, however, failed to revitalize either brand, and both continued to struggle with debt and competition.

The situation worsened when Sears Holdings filed for Chapter 11 bankruptcy in 2018, leading to more store closures. Transform Holdco LLC, also known as Transformco, acquired Sears Holdings’ assets in 2019, but this change in ownership did little to halt the brand’s decline.

The Last Stores Standing

After the Bridgehampton store closes, only two Kmart stores will remain in the 50 states. A smaller format store in Miami, Florida, will be the sole Kmart on the mainland, operating more like a convenience store than a traditional big-box retailer. Kmart will continue to have a presence in U.S. territories, with locations still operating in the U.S. Virgin Islands and Guam.

The closure of the Bridgehampton store is particularly notable as it occupies 89,935 square feet and is the largest big-box discount store in the Hamptons, an area known for high-end boutiques and mom-and-pop shops. The store’s imminent closure signifies not just the end of an era for Kmart, but also a shift in the retail landscape of this affluent community.

As we bid farewell to the last full-size Kmart, we’re reminded of the ever-changing nature of American retail and the importance of innovation and adaptation in a competitive market. The story of Kmart serves as a cautionary tale for businesses, highlighting the need to evolve with consumer preferences and technological advancements to remain relevant in today’s fast-paced retail environment.

Sources:

  1. Last full-size Kmart store in continental United States set to close in October
  2. Kmart Is Closing Its Last Full-Size Store
  3. One of America’s most iconic retail chains, Kmart, set to close last full-size store in US
  4. Kmart in Bridgehampton closing, leaving just 1 reduced-size store in U.S.
  5. Kmart store closings 2022: Just three Kmarts remain after new round of closures
  6. Last Kmart in NJ is set to close in October. Here’s where final 2 stores in US will be

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