Warning to Kmart buyers: The final full-sized Kmart in mainland U.S. is shutting down
The store located in Bridgehampton, New York, on Long Island, is scheduled to shut down on October 20, as confirmed by an anonymous employee contacted during a Monday morning phone call. The store manager was unreachable, and Transformco, the corporation that purchased Sears and Kmart's remnants from Sears Holdings' bankruptcy in 2019, did not respond to an email requesting comment.
Although the chain maintains a scaled-down version of its convenience store in Miami, it no longer offers the full array of goods Kmart was famed for. This Miami location does stock larger-ticket items, such as appliances, yet it lacks competition from dominant big box retailers. The company also has stores in Guam and the US Virgin Islands, where it enjoys a monopoly over the market.
The pending closure of the Long Island store marks the end of another chapter in the catastrophic 2005 merger of Sears and Kmart, one of many iconic retailers that met their demise following acquisitions by hedge funds and private equity firms. Valued at $11 billion, the merger was orchestrated by hedge fund manager Eddie Lampert.
The merged entities too struggled against fierce competition from successful big box rivals, such as Walmart and Target, which supplied groceries together with clothing, home goods, and tools offered at Kmart and Sears. Additionally, the rise of online shopping further weakened their positions.
At the time of the merger, Kmart operated approximately 1,400 stores, while Sears managed nearly 900 full-line US stores. Lampert primarily focused on liquidating the real estate holdings and other assets, such as the Craftsman brand, which was exclusively sold at Sears. As a result, the companies filed for bankruptcy in 2018.
Following their emergence from bankruptcy, the retailer retained a mere 231 Sears and 191 Kmart stores. However, the overwhelming majority of these stores were among the few that were destined to close. Today, merely a handful of Sears stores remain operational, although it continues to operate under various Sears Hometown brands.
Kmart initially surfaced in the late 19th century when its founder, Sebastian Spering Kresge, opened a five-and-dime store in downtown Detroit featuring his surname. The Kmart trademark was not popularized until 1962.
The chain experienced significant growth during the following decades, effectively cornering the discount market that is now dominated by big box stores.
Kmart was widely known for its 15-minute blue light specials compared to traditional sales - the store would flash a blue light and announce the discounted items to customers over the PA system, prompting a quick spree for bargain hunters. This promotional technique was introduced in 1965 but was discontinued in 1991, although the company attempted to reintroduce it on several occasions.
The pending closure of the Long Island store is a significant blow to Transformco's business operations in the region. Despite the merger of Sears and Kmart in 2005, the combined entities struggled against intense competition in the retail industry, leading to frequent store closures and eventual bankruptcy.
