Kmart, once a titan in American retail, is closing its last full-size store on the mainland. This marks the end of an era for many loyal customers.
The store in Bridgehampton, New York, will shutter its doors on October 20, as confirmed by an employee at the location. This closure signifies a significant transformation in the retail landscape.
The Closure Announcement
The news of the closure affects the store in Bridgehampton, located in Long Island. According to an unnamed employee, the store will cease operations on October 20. The manager was not available for immediate comment, and any further comments from the corporate owner went unanswered, leaving public speculation rampant.
A Historical Perspective
Kmart began its journey in the late 19th century, founded by Sebastian Spering Kresge with a modest five-and-dime store in downtown Detroit. The first Kmart-branded store emerged in 1962, rapidly expanding over the next few decades and becoming a household name.
One of Kmart’s notable marketing innovations was its 15-minute “blue light specials,” a distinctive announcement that prompted shoppers to rush for discounted items. These promotions started in 1965 but were discontinued in 1991. Attempts to revive this unique selling point have occurred several times.
The 2005 Merger and Its Aftermath
The merger between Sears and Kmart in 2005, orchestrated by hedge fund manager Eddie Lampert, was intended to save both retailers from decline. Worth $11 billion, the merger was seen as a lifeline.
Unfortunately, this merger eventually led to the decline of both brands. The focus appeared to be on selling real estate and other assets, such as the Sears-exclusive Craftsman brand. This strategy did not include investing in the stores themselves, leading to bankruptcy in 2018.
When the company emerged from bankruptcy, it retained 231 Sears stores and 191 Kmart locations. However, most of these were doomed to close due to continued poor performance and intense competition.
Competition and Changing Market Dynamics
Kmart’s decline was accelerated by fierce competition from other big-box retailers like Walmart and Target. These competitors offered a broader range of goods, including groceries, clothing, household items, and tools—products that were also staples of Kmart’s inventory.
The rapid growth of online shopping further eroded Kmart’s market share. Consumers preferred the convenience and variety offered by e-commerce giants, making it difficult for traditional brick-and-mortar stores to maintain their customer base.
Current Status of Kmart Stores
The last full-size Kmart closure does not mean the end of the brand entirely. A smaller convenience store version still operates in Miami, featuring some large-ticket items such as appliances.
Additionally, Kmart maintains a presence in Guam and the US Virgin Islands, where it faces less competition. The absence of major big-box retailers in these regions has allowed Kmart to sustain its operations to some extent.
Despite these existing stores, the closure of the Bridgehampton location is a significant marker of the brand’s continued decline in the continental United States.
Impact on Employees and Local Communities
The closure of the Bridgehampton store will inevitably impact its employees, who will need to seek new employment. Lack of clear communication from the corporate owner has only added to the employees’ uncertainty.
Local communities will also feel the loss, as Kmart stores often served as convenient local shopping destinations for various household needs. The store’s closure could lead to reduced shopping options for residents.
The Future of Retail
Kmart’s decline reflects broader trends in the retail industry. Traditional retail must adapt to survive in a market increasingly dominated by online shopping and fierce competition from large retail chains.
As the final full-size Kmart in the mainland United States prepares to close, it is a sobering reminder of the rapid changes within the retail sector and the challenges that legacy brands face.
The closure of Kmart’s last full-size store in the mainland United States signifies the end of a significant chapter in American retail history.
The transformation of shopping habits and the rise of e-commerce have dramatically altered the retail landscape, leaving behind once-thriving brands like Kmart.
