A former major discount chain is closing its last major store, but not before significantly slashing prices on remaining stock.
Kmart has been around for 135 years and sells products ranging from clothing and appliances to hardware and electronics. At its peak in 1994, it had 2,323 stores.
The chain’s last major location in Bridgehampton on Long Island, New York, will close its doors on October 20.
Until then, shoppers can take advantage of discounts of up to 40 percent during the clearance sale.
The only other Kmart left in the US is in Miami, but it is small and functions more as a convenience store, selling only essential items.
The Kmart in Bridgehampton, New York will close its doors on October 20
Kmart’s decline has been slow but steady, caused by years of declining sales, changing shopping habits and the looming shadow of Walmart.
Since the turn of the century, the company has gone bankrupt twice, causing global profit margins to fall from $49 billion in 2005 to just $3.26 billion in 2020.
The Bridgehampton store, which has been in business for 25 years, is located in the Kimco Realty shopping center.
Kmart has been gradually closing stores since its merger with Sears in 2005 under the leadership of hedge fund CEO Eddie Lampert.
Sears Holdings filed for Chapter 11 bankruptcy in 2018 and subsequently sold 202 stores to Transform Holdco. The remainder were liquidated.
After that, more things closed down quickly.
When Kmart closed its Avenel, New Jersey, location, a middle-class neighborhood 15 miles south of New York City, store in April 2022, it was left with just three stores.
In addition to the store in Bridgehampton that closed this week and the small store in Miami, a store in Westwood, New Jersey also closed its doors for good on February 2 of this year.
Kmart was founded in 1899 by Sebastian Spering Kresge as the S.S. Krege Company in the Garden City suburb of Detroit. It was a store where customers could find everyday necessities such as household goods, clothing, and toys.
In 1925, Kresge retired as president and the company was turned over to Henry Cunningham.
In 1962, the company was transformed into Kmart. The goal was to dominate the discount sector with low prices for national brands. It succeeded.
In its heyday, Kmart sold product lines endorsed by celebrities like Martha Stewart and Jaclyn Smith, sponsored NASCAR auto races, and was mentioned in films such as Rain Man and Beetlejuice.
Department stores are struggling to adapt to the changing consumer landscape.
Problems such as huge debts and inefficient management were exacerbated by theThe pandemic, which is accelerating the decline of several retailers who have struggled to retain their customer base and meet their changing preferences, CB Insights reported.
As people choose to shop online because they can have their products delivered to their homes, it is becoming increasingly difficult for companies to compete for customers.
Mannequins are among the items on display and fixtures for sale at Kmart in Avenel, New Jersey in April 2022. When the New Jersey store closed its doors on April 16, 2022, the former retail giant was left with just three U.S. locations
A smaller Kmart store in Miami will remain open, but will operate more as a convenience store
Stores like Sears, Kmart, Borders Books and Music, Toys R Us, Sports Authority, Lord & Taylor and Bed Bath & Beyond all struggled to adapt.
The Kmart store in Hyannis, Massachusetts, closed in 2021. Outside the United States, the store continues to operate in the U.S. Virgin Islands and Guam.
The announcement comes weeks after budget store chain Big Lots filed for bankruptcy, raising questions about the future of its 1,400 stores.
A total of 21 major U.S. retailers and restaurant chains filed for bankruptcy in the first half of this year, the highest number since the pandemic devastated major companies in 2020, S&P said in a July report.