END OF AN ERA: Discount retailer that once had 2,300 stores closes last big box location in US – and there’s 40% off in final weeks

According to THE SUN, In a significant turn of events for the retail landscape, Kmart has announced the closure of its last big box store in Bridgehampton, New York. Liquidation sales will begin this week, with discounts reaching as high as 40%. The store, which is the only remaining full-sized Kmart, is set to close its doors for good on October 20.

A Decline from Iconic Status

Once a titan in American retail, Kmart peaked at around 2,300 locations nationwide in 2005. However, the chain has faced a steady decline, with its store count dwindling to single digits in recent years. As reported by NBC affiliate WJAR, only three Kmart stores were still operational as of 2022.

The Bridgehampton store is located in a shopping center owned by Kimco Realty Corp, which confirmed the impending closure to Newsday. The reasons behind the closure have not yet been disclosed.

Financial Troubles and Bankruptcy

Kmart’s decline is stark compared to its heyday in the 1990s, when it boasted approximately 350,000 employees across its vast network of stores. However, the company filed for bankruptcy in 2002, citing significant debt, mismanagement, and the inability to compete with retail giants like Walmart and Target. Following this, Kmart merged with Sears Holdings in 2005.

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The situation worsened when Sears Holdings filed for bankruptcy in 2018, leading to a gradual closure of remaining Kmart locations. After October 20, there will no longer be any big-box Kmarts in the United States, though a smaller version of the retailer remains open in Miami, selling only essentials and likened to the size and operations of a convenience store.

International Presence and Broader Retail Landscape

While Kmart’s big-box presence in the U.S. is coming to an end, international locations remain operational in places like Guam and the U.S. Virgin Islands.

Kmart is not alone in facing challenges within the retail sector. Several retailers have experienced mass closures following bankruptcy filings this year. Big Lots recently confirmed its Chapter 11 filing, which includes plans to shut down around 545 stores. LL Flooring is also closing half of its over 400 locations following a quiet bankruptcy filing and reverting to a previous name under new ownership.

Additionally, clothing retailers like Express and Rue21 have announced significant store closures, with Express filing for bankruptcy in April and confirming nearly 100 store closures.