America, Say Your Goodbyes to Kmart

On Sunday, October 20, the Kmart in Bridgehampton, New York—the last full-size Kmart store in the continental U.S.—will close its doors forever. Employees confirmed the store’s closure to the media, an unceremonious end to a national retail chain that for decades offered the department store experience at a discount price. As a millennial who often accompanied my mom on errands, I will always remember Kmart as one of the more enjoyable big-box stores we’d hit in our weekly rotation.

One of the secrets to Kmart’s success from the 1960s to the 1990s was offering guests a sense of discovery. It not only sold merchandise through exclusive partnerships with celebrities like Martha Stewart but also became famous for its “blue light specials,” or flash discounts on certain items, indicated by a literal rotating blue light and an announcement over the PA system. Kmart, like Walmart and Target, sold everything from food to cosmetics to shoes, and it promised a quality shopping experience to a wide range of shoppers.

Kmart was America’s second-largest retailer until 1990 when it was surpassed by Walmart. It never recovered its position. What happened to this once great big-box chain?

What happened to Kmart?

Throughout the 1970s, as it expanded nationwide, Kmart steadily drove a number of similar chains out of business. That left only its most fearsome competitors, Walmart and Target, to nip at Kmart’s heels and fight for shoppers’ loyalty. Yet while those other chains aggressively expanded and invested in their brand identity, Kmart focused on acquisitions that distracted from its core business. The company bought up—and often later sold off—chains such as The Sports Authority, Borders and OfficeMax.

Kmart also fell behind its competitors in technological advancements, failing to build up an online presence and capture shoppers via digital channels. Some experts also point to consistent supply chain mismanagement as a reason that the company struggled to stay profitable. Finally, Kmart’s acquisition by a hedge fund in the early 2000s preceded the brand’s final death spiral; the new owners prized Kmart’s real estate value as an asset to sell off, a strategy at odds with investing in its stores.

As The Associated Press has pointed out, Walmart’s prices are lower and Target’s inventory is trendier, leaving Kmart with no niche of its own. Fittingly, The Real Deal reports that the Bridgehampton location will soon become a Target.

How many Kmarts are left in the U.S.?

Bridgehampton is the last full-size Kmart in the continental United States, but it’s not the very last Kmart store. CNN reports that one small-format store remains in Miami. There are also Kmart stores in Guam and the U.S. Virgin Islands—none of which have announced any plans to close. Guam has actually been a top-selling location for years, and the store remains popular there due to a lack of competition.

In retail, it seems like the only constant is change. After all, my family only ever started shopping at Kmart because Kmart itself bought up and supplanted the big-box store that sat in the same spot. Venture, I’ll always have a spot in my discount shopper’s heart for you, too.