Attention, Kmart shoppers: This is your last call for blue light specials. The iconic chain’s last American mainland superstore, located in Bridgehampton, New York, is closing its doors on Sunday, October 20.
It’s hard to imagine how a company that was once so ubiquitous across the American landscape could lose it all. As we mourn the loss of the brick-and-mortar retailer, let’s take a look back at its history, its demise, and what it has meant to people over the years.
How did Kmart start, anyway?
In 1899, Sebastian Spering Kresge came up with the idea for a store where people could buy essential household items, as noted by the Detroit Historical Society. The S.S. Kresge Corporation was born, with the first location in Detroit. Kresge laid the foundation of the success to come. By 1912, he had 85 stores in Delaware that sold over $10 million. He retired in 1925 and Henry Cunningham took over.
How did Kmart get so big?
The company shifted its focus during the 1960s to discounts. This was wildly successful, because who doesn’t love a bargain? A huge expansion was almost inevitable. The first store with the Kmart name opened in 1962 and the company changed its name to Kmart Corporation in 1977.
How big was Kmart at its peak?
Much like boy bands, Kmart peaked in the late ’80s and early ’90s. In 1986, it was the second-largest retailer behind Sears, as the New York Times points out. By 1993, it operated almost 2,500 stores. The following year, signs of trouble were already present. The chain started closing some of its doors.
What went wrong with Kmart?
Similar to the fall of the Roman Empire, there is not one clear-cut reason why Kmart failed. Multiple factors added up to its demise. The company didn’t define its brand well enough to attract a specific customer base, as retailers like Target and Walmart did. Perhaps by trying to appeal to everyone, Kmart captivated no one.
Kmart didn’t keep up with the technology of the times, failing to move business online quickly enough as shoppers migrated from physical stores to websites and then mobile phones.
There were also bad investments: Kmart bought Borders books, Sports Authority, and Builders Square. More failed brick-and-mortar businesses.
In 2002, Kmart was forced to file for bankruptcy, becoming the largest retailer ever to do so. Eddie Lampert attempted to save the day by buying the corporation’s debt and merging it with Sears. This was unsuccessful in part because of the rise of Amazon and also the 2008 recession. A second bankruptcy came in 2018.
The aftermath of Kmart’s demise
After Sunday, all that will be left of the physical chain is a small store in the former garden center of its predecessor in Miami and a small number of stores in Guam and the U.S. Virgin Islands.
Kmart holds a special place in the hearts of many consumers. There are many Facebook Groups and Reddit discussion boards dedicated to the subject.
Chrissy Economos and Gloria McCourtney, two shoppers who flew from Minnesota to visit the last Kmart store during its final days, spoke with the New York Times about their decision to travel 1,300 miles to say goodbye to the chain. “We would regret it if we didn’t come,” McCourtney explained. Much of their lives were spent wandering the aisles.
Retail’s problems are bigger than Kmart
Kmart’s closing is indicative of a larger pattern across all retail chain stores in general, coming during a particularly tough year. Big Lots filed for Chapter 11 bankruptcy protection in September and sold to Nexus Capital Management. Joann, the popular fabric store, similarly filed for bankruptcy in March. Hardware chain True Value joined them just this week.
Pharmacy chains are also struggling to compete in an online world. Walgreens is planning to close 1,200 stores. CVS just wrapped up closing 900 locations over the last three years. Share prices for both companies are down significantly this year.
Rite Aid filed for Chapter 11 protection in 2023, closing 520 stores. Last month, it announced its exit from bankruptcy after reducing its debt by about $2 billion. Under the leadership of Matt Schroeder and armed with around $2.5 billion in exit financing, the company hopes to once again flourish.
The current state of retail is volatile and the future uncertain. One thing is clear. After Sunday, you are going to have to get your Jaclyn Smith, Joe Boxer, and Route 66 items somewhere other than Kmart.
