What killed Kmart and other pressing questions as the grocery chain closes its last full-size store

Attention, Kmart shoppers: This is your last call for blue light deals. The chain’s last major American store, located in Bridgehampton, New York, is closing its doors on Sunday, October 20.

It’s hard to imagine that a company that was once ubiquitous in America could lose everything. As we mourn the loss of a brick-and-mortar retailer, let’s take a look back at its history, its demise, and what it meant to people over the years.

How did Kmart get started, anyway?

In 1899, Sebastian Spering Kresge came up with the idea of ​​a store where people could buy essential household items, as noted by the Detroit Historical Society. The SS Kresge Corporation was born, with its first location in Detroit. Kresge laid the foundation for future success. By 1912, he had 85 stores in Delaware with sales of 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 a huge success, because who doesn’t love a bargain? A large increase was almost inevitable. The first store bearing the Kmart name opened in 1962 and the company changed its name to Kmart Corporation in 1977.

How big was Kmart at its peak?

Like boy bands, Kmart peaked in the late ’80s and early ’90s. By 1986, it was the second largest retailer behind Sears, as New York Times he points. In 1993, it operated nearly 2,500 stores. The following year, signs of trouble were already there. The chain began closing some of its doors.

What’s wrong with Kmart?

Similar to the fall of the Roman Empire, there is no single clear reason why Kmart failed. Many factors contributed to its demise. The company did not define its brand well enough to attract a specific customer base, as retailers such as Target and Walmart did. Perhaps by trying to appeal to everyone, Kmart did no one any favors.

Kmart didn’t keep up with the technology of the times, failing to move the business online fast enough as consumers migrated from physical stores to websites and then mobile phones.

There were also bad investments: Kmart bought the books of Borders, Sports Authority, and Builders Square. Many brick and mortar businesses have failed.

In 2002, Kmart was forced to file for bankruptcy, becoming the largest retailer ever to do so. Eddie Lampert tried to save the day by buying corporate debt and merging it with Sears. This failed in part due to Amazon’s growth and the 2008 recession. The second bankruptcy occurred in 2018.

The aftermath of Kmart’s demise

After Sunday, all that will remain of the physical chain is a small store at its former Garden Center in Miami and a small number of stores in Guam and the US Virgin Islands.

Kmart has a special place in the hearts of many shoppers. There are many Facebook groups and Reddit discussion boards dedicated to the topic.

Chrissy Economos and Gloria McCourtney, two shoppers who flew in from Minnesota to visit the last Kmart store in its final days, spoke to the New York Times about their decision to travel 1,300 kilometers to bid farewell to the series. “We would regret it if we didn’t come,” explained McCourtney. Most of their lives are spent roaming the corridors.

Retail problems are bigger than Kmart

The Kmart closings are indicative of a larger pattern for all grocery stores in general, coming in the midst of a very difficult year. Big Lots filed for Chapter 11 bankruptcy protection in September and sold to Nexus Capital Management. Joann’s, a popular clothing store, similarly filed for bankruptcy in March. The Real Value hardware series joined them this week.

Pharmacy chains are also struggling to compete in the online world. Walgreens plans to close 1,200 stores. CVS has recently closed 900 locations over the past three years. Share prices for both companies have fallen sharply 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 nearly $2 billion. Under the leadership of Matt Schroeder and armed with an estimated $2.5 billion in cash outflows, the company hopes to rebound.

The current sales environment is volatile and the future is uncertain. One thing is clear. After Sunday, you’ll have to find your Jaclyn Smith, Joe Boxer, and Route 66 items somewhere other than Kmart.