Kmart, once a titan in North American discount retail, is closing its final full-size store in the continental United States, marking the end of an iconic brand’s brick-and-mortar presence. The company had a presence in Canada from 1963 until 1998.
The Last Stand on Long Island
The Bridgehampton, New York store, located on Long Island, is set to close its doors on October 20th. The closure represents more than just the end of a single location; it symbolizes the culmination of a long decline for a brand that was once ubiquitous in North American shopping culture.
From Retail Giant to Retail History
Kmart’s journey began in the late 19th century when Sebastian Spering Kresge opened a five-and-dime store in Detroit. The Kmart brand, launched in 1962, quickly became a household name, known for its wide range of products and famous “blue light specials.”
Kmart opened its first Canadian store in Huron Heights, Ontario, in March of 1963. A Windsor location opened two months later. The chain grew over the years. In December of 1997, 112 of Kmart’s 122 Canadian stores were sold to the Hudson’s Bay Company, which by May 1998 had either closed locations or converted them to Zellers stores.
At its peak, Kmart operated over 2,000 stores in North America, offering everything from clothing and household goods to electronics and toys. The brand’s decline, however, was accelerated by the ill-fated 2005 merger with Sears, orchestrated by hedge fund operator Eddie Lampert. The Sears chain in the US has also since almost disappeared under his direction.
The Aftermath of a Retail Merger Gone Wrong
The $11 billion Sears-Kmart merger, once hailed as a game-changer in the retail industry, proved to be the beginning of the end for both brands. At the time of the merger, Kmart boasted approximately 1,400 stores, while Sears had nearly 900 full-line U.S. locations.
However, the combined entity struggled to compete with more agile competitors like Walmart and Target, which offered a similar range of products along with groceries. The rise of online shopping further eroded Kmart’s market share, leading to a steady decline in store count and relevance.
The Final Chapter with Kmart Closing
With the closure of the Bridgehampton store, Kmart’s presence in the continental U.S. will be reduced to a single small-format convenience store in Miami. The brand still maintains a presence in Guam and the U.S. Virgin Islands, where it faces less competition from other big box retailers.
For those seeking the Kmart name, a local Kmart operation continues to thrive in Australia. And there’s a Canadian connection — Anko, the in-house brand sold at Kmart Australia, is also the core brand carried in Zellers locations at Hudson’s Bay in Canada.
As the last full-size Kmart store prepares to close, it marks the end of an era in North American retail. The brand that once pioneered discount shopping and captured the imagination of consumers with its blue light specials will soon exist only in the memories of generations of shoppers.
Related Article: Inside Zellers 2.0 and its Newly Secured In-House Brand ‘Anko’
It’s sad to see the demise of the once-widespread Kmart banner. Yet it’s hardly surprising. No money was put into the U.S. stores for years (the Canadian stores were sold off in the late 1990s) and shopping in a U.S. Kmart felt like time travel back to the 1970s. Even worse, the product mix took a steep decline in the final years until it was little better than that of a dollar store.