American Fare

Kmart

Company type	Subsidiary
Industry	Retail
Predecessor	S. S. Kresge Corporation
Founded	1899 (1899)
Founder	Sebastian Spering Kresge
Fate	Acquired by Transformco in 2019
Headquarters	United States
Area served	United States and territories (limited)
Products	Apparel, household appliances, electronics, kitchenware, groceries
Parent	Transformco

Kmart ( ), previously known as Kmart Corporation, is a department store chain and e-commerce retailer operating within the United States and its territories, managed since 2019 by Transformco.

Founded in 1899 under the name S. S. Kresge Corporation, Kmart expanded to operate 2,486 locations worldwide at its peak in 1994. Its large-format stores offered a diverse selection of merchandise, including apparel, household appliances, electronics, kitchenware, and groceries.

Beginning in the 1990s, Kmart experienced a downturn that culminated in a Chapter 11 bankruptcy filing in 2002. The company merged with Sears in 2005, creating Sears Holdings Corporation. Store closures persisted until Sears Holdings also declared bankruptcy in 2018. Subsequently, Kmart became part of Transformco, a privately held firm established in 2019 to acquire Sears Holdings' assets. Additional store shutdowns occurred, with the final full-scale big-box location on the mainland United States closing in 2024.

At present, only three Kmart outlets remain operational: two large-format stores located in the US Virgin Islands and Guam, alongside a smaller retail location in Kendale Lakes, Florida.

Early years

S. S. Kresge, who founded the enterprise that evolved into Kmart, initially worked as a traveling salesman supplying all 19 stores owned by variety-store innovator Frank Winfield Woolworth. In 1897, Kresge invested $6,700—accumulated from his sales career—into establishing a five-and-dime shop in Memphis, Tennessee, co-owned with former client John G. McCrory. The following year they opened a second outlet in Detroit, marking the launch of the original S.S. Kresge stores. After two years, Kresge exchanged his stake in the Memphis location plus $3,000 to gain sole ownership of the Detroit store and partnered with his brother-in-law Charles J. Wilson to form the Kresge & Wilson Company.

In 1912, Kresge formally incorporated the S.S. Kresge Company in Delaware with an initial portfolio of 85 stores. Four years later, he established a new S.S. Kresge Company in Michigan to oversee operations more directly; this entity laid the groundwork for what would become modern-day Kmart. The company debuted on the New York Stock Exchange on May 23, 1918. During World War I, store price ceilings were raised to $1. By 1924, Kresge's net worth was estimated at approximately $375 million with real estate holdings valued near $100 million. The chain expanded swiftly from 257 outlets in 1924 to 597 by 1929. Although Kresge stepped down as president in 1925, he maintained his role as chairman. Despite setbacks during the Great Depression which reduced profits and caused some locations to close, store count grew to 682 by 1940. The post-war shift toward suburban living significantly altered consumer shopping habits.

1960s–1970s

Under the leadership of executive Harry Cunningham, the S.S. Kresge Company inaugurated the very first Kmart outlet on January 25, 1962, located in San Fernando, California. Initially intended to be a Kresge store, it was rebranded as Kmart late in its development phase. This opening occurred six months prior to the launch of the first Walmart. The first full-scale Kmart store debuted on March 1, 1962, in Garden City, Michigan. Both Cunningham and Sam Walton drew inspiration from their visit to Ann & Hope in 1961. Throughout 1962, seventeen additional Kmart stores were launched. During this period, the company also introduced Kmart Foods, a supermarket chain that has since been discontinued. Despite expanding its Kmart-branded outlets, the company officially retained the name S.S. Kresge Company.

Sebastian Spering Kresge, the company’s founder, passed away on October 18, 1966, at 99 years old.

Following the debut of the initial Kmart store, underperforming S.S. Kresge locations were transformed into "Jupiter Discount Stores," a no-frills deep discount format. The 1970s saw an aggressive expansion by Kmart that led to the exit of many competitors from the market. Major rivals included chains such as Zayre, Ames, Bradlees, Caldor, Hills, and various MMG-McCrory Stores brands like McCrory, McLellan, H.L. Green, J.J. Newberry, S.H. Kress, TG&Y, Silver's, and later G.C. Murphy Co. In 1977, S.S. Kresge Company officially changed its name to K Mart Corporation.

1980s: Last Kresge stores

Bernard M. Fauber took over as chairman and CEO of Kmart in 1980 after serving as vice chairman.

By April 1981, the company celebrated the opening of its 2,000th Kmart store located in Kearny, New Jersey, which remained operational until May 2021. By year-end, there were a total of 2,055 Kmart locations throughout the United States and Canada.

In 1987, Kmart divested its last remaining 76 U.S.-based Kresge and Jupiter outlets to McCrory Stores, effectively phasing out those brands domestically; however, Canadian operations under these names continued until 1994.

Kmart experimented with co-branding efforts in 1985 by converting an on-site cafeteria at a Canton, Michigan store into a Wendy's restaurant. Additionally, it partnered with Bruno’s Supermarket to create the hypermarket concept known as American Fare.

Until November 1990—when Walmart surpassed it—Kmart held the position as the second-largest retailer in the U.S., trailing Sears. Toward the late 1980s and early 1990s, corporate focus increasingly shifted from core Kmart stores toward acquired entities such as Sports Authority, Builders Square, and Waldenbooks.

Blue Light Special

The Blue Light Special was a time-limited promotional event within stores characterized by a rotating blue light and announced with the phrase "attention Kmart shoppers," which became ingrained in popular culture. Introduced in 1965 to clear slow-moving inventory, this promotion was discontinued in 1991 but saw occasional revivals during the 2000s—in particular in 2001, 2005, 2009—and a final comeback in 2015.

1990–2001: New image

In 1990, Kmart updated its visual identity by replacing the italicized "K" with turquoise "mart" logo with a red block "K" accompanied by script-style "mart," a design that remained until it was replaced in 2004. That same year marked Little Caesars Pizza’s introduction of its first in-store outlet within a Kmart location—both companies share roots in Garden City, Michigan. In 1995, Kmart briefly adopted the branding Today's Kmart.

The Super Kmart Center concept launched on July 25, 1991, in Medina Township, Ohio; this format combined comprehensive grocery offerings with general merchandise under one roof. Although initially expanded nationwide, many Super Kmarts were downsized or shuttered by the early 2010s; the final store closed in Howland Township, Ohio in April 2018. The corporation officially renamed itself Kmart Corporation that same year.

In an international move during 1992, Kmart entered Eastern Europe by acquiring thirteen stores located in former Czechoslovakia but divested them by 1996. Exclusive product lines featured collaborations with personalities such as Martha Stewart, Kathy Ireland, Jaclyn Smith, Lauren Hutton, and Thalía; licensed merchandise included characters from Sesame Street and Disney franchises. Prominent spokespeople included Rosie O'Donnell and Penny Marshall.

In September of 1995, unprofitable auto repair centers were sold to Penske Corporation for $112 million; these facilities fully ceased operations by 2002 following disputes.

The Big Kmart format debuted on April 23, 1997; it emphasized home fashions, children's apparel, and consumables (under The Pantry brand). By the early 2000s most stores had transitioned to this layout. By 1998 Big Kmarts represented about 62% of all locations; that year also saw acquisition and conversion of forty-five former Venture stores into Kmarts. Around the year 2000 peak period featured approximately 1,900 Big Kmarts compared to roughly one hundred each of Super Kmarts and traditional Kmarts.

Kmart purchased The Sports Authority chain in 1990 but divested it five years later. The company’s highest sales and profitability occurred around 1992; thereafter decline ensued due to competition from Walmart, Target and emerging e-commerce platforms. In response to financial pressures during this period—in particular in 1994—Kmart announced plans to close one hundred ten stores. Unlike its competitors who invested heavily in supply chain technology upgrades while limiting dividends payouts for reinvestment purposes, Kmart maintained high dividend payments but underinvested technologically. Analysts also noted inconsistent branding strategies contributed to its challenges.

In an effort to modernize customer experience in 1997, Kmart introduced the Kmart Cash Card replacing paper gift certificates and simplifying returns processes. In July of 1999 distribution of $3.9 billion worth of food products was outsourced to SuperValu and Fleming for delivery to stores. The year 2000 brought a partnership with Capital One resulting in a co-branded MasterCard which replaced private-label credit cards.

That same year saw expansion of Martha Stewart’s Everyday Garden Collection to include live plants and seeds; concurrently she launched Everyday Kitchen housewares line.

In July of 2000 seventy-two underperforming stores were closed while new Big Kmarts opened and other locations converted into Super Kmart Centers simultaneously. The company unveiled plans for significant restructuring including investments aimed at upgrading checkout systems and enhancing inventory management technologies.

1990–2001: Brand Transformation

In 1990, Kmart revamped its branding by introducing a new logo that showcased a red block "K" with the word "mart" inscribed inside, replacing the previous italicized design. Shortly after this change, the company initiated store renovations. This logo remained until it was replaced in 2004. That same year marked the debut of Little Caesars Pizza's first in-store restaurant within a Kmart location in Rochester, Michigan, both businesses tracing their roots back to Garden City, Michigan. Additionally, in 1995, Kmart briefly adopted the name Today's Kmart.

By 2001, Kmart broadened its Super Kmart Center concept to incorporate grocery items. Nonetheless, after filing for bankruptcy protection in January 2002, the company halted all new store openings and suspended ongoing construction projects. During this period, Kmart secured an exclusive $4.5 billion supply agreement with Fleming for distribution of food and consumable goods.

That year also brought significant legal difficulties for Kmart. In February, Japanese video game manufacturer Sega filed a lawsuit over unpaid invoices amounting to $2.2 million out of a $25.9 million total owed for Dreamcast consoles. Later in August, competitor Target initiated legal action against Kmart concerning its "Dare to Compare" advertising campaign, accusing it of misleading price comparisons displayed on store signage.

2002–2009: Sears Merger Era

On January 22, 2002, under the leadership of chairman Charles Conaway and president Mark Schwartz, Kmart filed for Chapter 11 bankruptcy protection. Conaway, who had previously achieved success at CVS Corporation, assumed control backed by a $5 million loan. Both executives were subsequently accused of deceiving shareholders while personally benefiting financially. Conaway took "full responsibility," resigned from his position, and was required to repay loans as part of Kmart’s restructuring efforts.

The company shuttered more than 300 stores across the United States—including all locations in Alaska—and laid off approximately 34,000 employees. It introduced five prototype stores featuring a fresh lime green logo and updated layouts in Michigan and Illinois, highlighting wider aisles and enhanced lighting; however, financial limitations prevented widespread implementation of this design. By 2006, the lime green concept was supplanted by the "Orange" prototype.

During bankruptcy proceedings, hedge fund ESL Investments, led by Edward Lampert, acquired substantial portions of Kmart’s debt and accelerated the restructuring process. On October 17, 2002, Kmart opened its sole new store that year in Somers Point, New Jersey; this location later closed in December 2019.

On January 13, 2003, Kmart closed 326 underperforming stores. The retailer emerged from bankruptcy on May 7, 2003, and resumed trading on NASDAQ as KMRT on June 10, with Lampert serving as chairman and ESL Investments owning a controlling 53% stake acquired for less than $1 billion. Lampert prioritized profitability over expansion by reducing inventory levels and cutting expenses. By late 2003, Kmart recorded its first profitable quarter in three years but subsequently faced renewed operating losses.

On July 23, 2004, Kmart introduced a redesigned logo featuring a prominent red "K" with "kmart" positioned beneath it. In August of that year, the company collaborated with E! Entertainment Television to launch an exclusive apparel line named Attention—available solely at Kmart stores—to promote E! News Live. This followed earlier similar partnerships with the WB Network.

The Kmart Rewards credit card program was launched on November 8, 2004, managed by HSBC Bank.

On November 17, 2004, Kmart announced plans to acquire Sears for $11 billion. This merger formed Sears Holdings Corporation which operated both retail brands. The corporate headquarters relocated to Hoffman Estates, Illinois; the former Troy facility was sold in 2012 to the Forbes Company.

In 2005, Sears Holdings debuted Sears Essentials stores as a hybrid format blending elements from both Kmart and Sears; these outlets were rebranded as Sears Grand stores by the following year.

Starting in 2005, Kmart began remodeling locations according to the "Orange" prototype—interior designs switched to orange and brown hues with lower shelving to enhance visibility throughout the store. Renovated stores featured appliance departments showcasing Kenmore Appliances and hardware sections offering Craftsman tools previously exclusive to Sears outlets. Certain former Penske auto centers were converted into Sears Auto Centers.

In July 2009, Sears Holdings launched its first Sears-branded appliance store inside a Birmingham, Alabama Kmart—a store-within-a-store concept situated where the garden department once operated.

By October 2009, Kmart chose not to renew its licensing agreement with Martha Stewart Living Omnimedia, following Stewart’s public criticism regarding the brand’s decline after the merger.

In November of that year, Kmart reported its first positive year-over-year sales growth since 2005—an increase of 0.5%—marking only its second such gain since 2001.

2010–2018: Sears Holdings and Kmart

Throughout the 2010s, numerous Kmart locations showed signs of aging and decline. On December 27, 2011, Sears Holdings revealed intentions to shutter between 100 and 120 Sears and Kmart outlets. By 2014, amid Sears Holdings’ financial difficulties, Kmart was closing many stores, sparking concerns among suppliers and creditors about cash flow. To address these challenges, the company undertook several initiatives such as divesting Lands' End, reducing its holdings in Sears Canada, issuing bonds, and obtaining loans that generated $1.445 billion in liquidity during 2014. According to spokesperson Howard Riefs, the store closures were strategic moves aimed at lowering costs and evolving the company’s operational model.

On October 10, 2014, Kmart experienced a security breach involving customers’ credit and debit card data; however, the company later clarified that no personal or online account information was compromised.

In April 2016, Kmart announced plans to liquidate 68 stores, followed by an additional 64 closures by year-end. Despite CEO Eddie Lampert’s assurances that there were no intentions to eliminate the Kmart brand and his efforts to rejuvenate it through integrated retail strategies and the Shop Your Way loyalty program, store shutdowns persisted. Throughout 2017, Kmart declared several rounds of closures—78 in January, 18 in May, 49 by September, and further reductions through November—highlighting ongoing operational difficulties. During this time frame, several states saw their last remaining Kmart stores close. Notably, during the 2017 holiday period, both Kmart and Sears refrained from television advertising, opting instead for a digital marketing approach.

On January 4, 2018, Kmart disclosed plans to close another 64 locations in spring 2018, including the final Super Kmart store located in Warren, Ohio. Analysts cautioned that Sears Holdings was approaching collapse with an uncertain future for Kmart. Although Sears reported a modest profit in Q4 2017 due to tax refunds in March 2018, sales continued to decline. CEO Lampert acknowledged skepticism regarding Kmart’s sustainability as a standalone retail chain and indicated a shift toward e-commerce.

In April and May of 2018, Sears Holdings announced additional store closures and auctions across the country affecting both Sears and Kmart outlets—including the last remaining Kmarts in Vermont and Hawaii. By July 2018, liquidation sales had expanded across numerous sites. Further rounds of closures were declared into late 2018 as the company aimed to minimize losses from underperforming stores.

This prolonged contraction underscored broader challenges facing Sears Holdings amid evolving retail trends and financial instability impacting both brands.

2018–2019: Second Bankruptcy

On October 15, 2018, Sears Holdings filed for Chapter 11 bankruptcy protection while announcing the shutdown of 142 locations—63 of which were Kmarts—including the final Kmarts operating in Arkansas, Georgia, and Kansas. This event marked Kmart’s second bankruptcy filing within a span of sixteen years. By November 8, Sears Holdings planned an additional closure of 40 stores with 11 being Kmarts. On November 23, Sears published a list of 505 stores proposed for sale during bankruptcy proceedings; this list included 239 Kmarts though liquidation remained a possibility. By December 28, another set of closures totaling 80 stores were planned with 37 Kmarts among them.

In January 2019, Sears Holdings outlined plans to maintain only about 202 Kmart stores along with approximately 223 Sears locations concentrated primarily in densely populated coastal markets. On January 15, a bankruptcy judge blocked an imminent Chapter 7 liquidation and encouraged negotiations with Chairman Eddie Lampert to preserve up to 400 stores. Subsequently on January 19, ESL Investments was announced as the successful bidder at the bankruptcy auction securing certain store operations.

Nevertheless, on January 24 unsecured creditors—including Simon Property Group—contested Lampert’s proposal in court alleging asset stripping detrimental to suppliers and landlords while advocating for liquidation to maximize recoveries for creditors. The Pension Benefit Guaranty Corporation also opposed the plan citing a $1.7 billion pension funding shortfall that could impose burdens on taxpayers. ESL later revealed intentions to close three Kmart stores monthly if its acquisition was approved.

In February 2019, a U.S. bankruptcy judge authorized Lampert’s purchase of Sears Holdings’ most valuable assets enabling ongoing operations of roughly 425 Kmart and Sears outlets under a new entity named Transform Holdco (Transformco). This restructuring prioritized business continuity over creditor claims but resulted in continued store closures well into late 2019 and early 2020.

2019–present: Leadership Changes and Continued Store Shutdowns

In February 2019, the transaction transferring ownership of 202 Kmart stores to Transform Holdco was completed, while the remaining outlets were liquidated to help satisfy debts owed by Sears Holdings.

By mid-2019, Kmart revealed plans for multiple store shutdowns, including the Walla Walla, Washington location, which had served customers for nearly 45 years. Transformco indicated an ongoing reassessment of its retail presence, resulting in several waves of closures: 84 stores closed in October 2019, followed by an additional 96 by early 2020. The last Michigan Kmart store—located in the chain’s original home state—shut its doors in November 2021. Shortly after, in December 2021, the final West Coast outlet in Grass Valley, California ceased operations.

Following the March 2022 closure of the Hamilton, Montana location, only four Kmart stores remained within the United States, with half located in New Jersey. The Avenel store in New Jersey closed in April 2022. The remaining outlets were located in Miami, Florida; Westwood, New Jersey; and Bridgehampton, New York. After more than four decades of operation, the Westwood store closed in October 2023, leaving just two mainland U.S. stores alongside several locations in U.S. territories.

The Bridgehampton store ended operations on October 20, 2024. Established in 1999 as a replacement for a Caldor outlet, it outlasted many others due to minimal competition from Walmart and Target nearby. Its closure left Miami as the only Kmart on the continental U.S., alongside four remaining stores in U.S. territories. The Miami location had been downsized significantly in March 2023 to approximately the size of a typical CVS or Walgreens pharmacy, operating from what was once its garden center area with a limited product selection; the remainder of the space is leased to an At Home retailer. This particular Miami store originally opened on November 3, 1977.

In May 2025, it was announced that the Kmart situated at Sunny Isle shopping center in St. Croix, U.S. Virgin Islands would cease operations in August due to lease non-renewal but actually closed early on July 5, marking the final Kmart on St. Croix. Two years earlier, another St. Croix store located in Frederiksted had shut down after more than thirty years of service. In June 2025, reports confirmed that the Lockhart Gardens location on Saint Thomas would close on August 16. This leaves just one remaining Virgin Islands store at Tutu Park Mall on Saint Thomas, alongside locations in Guam and Miami still operating nationwide.

Corporate Headquarters

Sears Holdings Corporation—the previous owner of Kmart—maintained its corporate headquarters on Beverly Road in Hoffman Estates, Illinois. In December 2021, Transformco announced intentions to sell this headquarters facility early the following year. Currently, the company operates from a different office building located on Trillium Boulevard within Hoffman Estates.

Kmart’s former headquarters were situated at 3100 W. Big Beaver Road in Troy, Michigan—a suburb within Metro Detroit. The complex consisted of twenty-three interconnected sections mostly rising three stories tall and was described by Norm Sinclair of DBusiness as "a study in inefficiency."

Current

• Kmart functions as a discount department store chain predominantly featuring standalone locations. Its merchandise includes CDs, DVDs, electronics, bedding products, hardware supplies, sporting goods, apparel, toys, jewelry, office essentials, health and beauty items, along with a limited selection of groceries. Many stores previously contained garden centers, tax service centers, pharmacies, or K-Cafés. Store sizes varied widely before extensive closures reduced their footprint; numerous locations were formerly branded as Big Kmart or Super Kmart stores.

Former

• American Fare was a hypermarket chain established as a partnership between Kmart (holding 51%) and Bruno's Supermarkets (49%) from 1989 to 1994. Its inaugural location opened in Stone Mountain, Georgia, featuring retail space that combined groceries with general merchandise. Two further outlets launched in Charlotte and Jackson. Bruno's withdrew from the alliance in 1992, leaving Kmart as sole owner, which shuttered all stores by 1994. The brand name continues to appear on select Kmart consumable products.
• Big Kmart stores focused on home furnishings, children's apparel, and expanded grocery departments. Store sizes varied from . Amenities often included garden centers, pharmacies, tax service counters, portrait studios, arcades, cafés, and fueling stations. Rolled out across the company in 1997; many locations were later closed or reverted to standard Kmart formats. The final Big Kmart ceased operations in Marshall, Michigan in November 2021.
• BlueLight Internet service: Introduced by Kmart in 1999 as an ad-supported dial-up internet provider; initially spun off but later reacquired by Kmart before being sold to United Online in 2002 following bankruptcy proceedings.
• Borders: Bookstore chain purchased by Kmart in 1992; merged with Waldenbooks to form the Borders-Walden Group in 1994; divested in 1995. Borders ultimately filed for bankruptcy and was liquidated in 2011.
• Builders Square: Home improvement superstore chain sold to Hechinger in 1997; Hechinger itself ceased operations in 1999.
• Designer Depot: Discount apparel outlets operating within Metro Detroit during the 1980s, offering brand-name clothing at reduced prices.
• K-Café: Fast-food style restaurant located inside stores; discontinued by April 2018.
• KDollar: Discount retail stores selling Kmart-branded merchandise at lower prices; typically situated in former Kmart premises. The first opened in Bloomfield Hills, Michigan (2013), followed by a second location in Waukegan, Illinois.
• Kmart Chef restaurants operated between 1967 and 1974, featuring limited fast-food menus; reached a peak of 11 locations.
• Kmart Dental: Prototype dental clinic housed within a Miami Kmart store; was not owned by Kmart itself.
• Kmart Express: Gas station and convenience store combination found at some Kmarts and Super Kmarts primarily across the Midwest; expansion plans were halted after bankruptcy; the last location closed in Ionia, Michigan (2017).
• Kmart Food Stores: Supermarket chain paired with Kmart stores from 1962 until phased out during the early 1980s.
• Kwash: Prototype laundromat attached to a Kmart store launched in Iowa City (2010); closed alongside the store in 2017.
• Makro: Dutch warehouse club chain with U.S. operations from 1981 to 1989; fully acquired by Kmart and subsequently converted or shut down by 1990.
• Office Square: Office supply and furniture retailer spun off from Builders Square; later merged into OfficeMax following its acquisition by Kmart.
• OfficeMax: Office supply chain bought by Kmart in 1991 and sold off in 1995; eventually acquired by Office Depot in 2013.
• Pace Membership Warehouse: Kmart’s warehouse club brand until Walmart purchased it and converted most locations into Sam’s Club by 1993.
• PayLess Drugs: Pharmacy chain acquired by Kmart in 1985 and sold to TCH Corporation in 1994; subsequently merged into Rite Aid.
• The Sports Authority: Sporting goods retailer acquired by Kmart in 1990 and divested in 1995; ceased operations entirely in 2016.
• Super Kmart Center was a large-format superstore combining general merchandise with comprehensive grocery departments spanning . The first store opened on July 25, 1991. Features included garden centers, video rental outlets, banks, arcades, portrait studios, tax service counters, pharmacies, deli cafés or pizza counters. Most locations were closed during early-2000s downsizing or converted back to standard Kmarts with limited grocery selections. The final Super Kmart closed on April 8, 2018; replaced by Meijer.
• U-Pak was a basic supermarket adjacent to a Pontiac Kmart that opened and shuttered within one month due to poor sales (1979).
• Variety Outlet was a closeout retail chain primarily operating out of former Kmart buildings beginning in Rome, Georgia (1994).
• Waldenbooks was a mall-based bookstore chain acquired by Kmart (1984), merged with Borders (1994), then sold off (1995); Borders Group eventually liquidated after bankruptcy (2011).

Philanthropy

Kmart's charitable initiatives were coordinated under the Kmart for Kids program, which supported organizations including the March of Dimes, St. Jude Children's Research Hospital, and the American Diabetes Association. For three decades, Kmart stood as the leading corporate donor to March of Dimes, contributing a total of $114 million.

On July 29, 2008, Don Germano, Senior Vice President and General Manager of Kmart stores, was appointed for a five-year term to the March of Dimes Foundation Board of Trustees.

Kmart's annual Thanks and Giving campaign aided St. Jude's, generating more than $59.2 million by 2008. The holiday campaign in 2013 achieved a record-breaking $21.9 million in donations.

In recognition of its support for the American Diabetes Association's "Step Out: Walk to Fight Diabetes" program, Kmart received the "Outstanding Corporate Citizen" Award in 2008. As a national sponsor beginning that year, Kmart and its customers collectively raised nearly $1.5 million through in-store fundraising efforts over two years.

Environmental record

On May 9, 2007, Kmart was penalized $102,422 for breaches of federal regulations concerning hazardous waste management, clean water standards, and emergency planning at 17 distribution centers. To rectify these violations, the company implemented spill prevention protocols, secured storm-water permits, adhered to hazardous waste generator regulations, and coordinated with emergency planning agencies. The EPA also identified deficiencies in Kmart’s hazardous waste storage and disposal practices, including improperly labeled oil drums at a Pennsylvania facility.

Kmart has actively promoted battery recycling programs. In 1990, it announced plans to invest approximately $80 million in full-page newspaper advertisements offering to recycle used batteries at a cost of $2 each.

October 2014

In early September 2014, malware was detected on certain in-store payment systems across multiple Kmart locations; this breach was publicly disclosed in October 2014.

September 2017

From September 26 to October 12, 2017, malicious software compromised computers belonging to a service provider for sears.com and kmart.com. This incident exposed credit card information belonging to approximately 100,000 customers through injected malicious scripts. The breach was revealed to the public only in April 2018.

June 2018 incident

Sears Holdings announced in June 2018 that hackers had obtained credit card details from several Kmart stores by embedding undetectable "viruslike computer code" into store payment systems.

June 2021

Between June 3 and June 15, 2021, unauthorized access occurred on Transformco servers containing payroll and healthcare information for current and former employees of Kmart and other Transformco brands.

Animal welfare concerns

In 2012, Mercy for Animals exposed abusive practices at Christensen Farms—a pork supplier to Kmart, Walmart, and Costco—including the use of gestation crates and mistreatment of piglets. Subsequently, Kmart pledged to eliminate gestation crates from its pork supply chain.

Racing sponsorships

Kmart played a significant role as a sponsor in NASCAR and the now-defunct CART series. Notably, it supported Newman/Haas Racing, owned by actor Paul Newman and racer Carl Haas. The team’s CART drivers included champions such as Nigel Mansell and Michael as well as Mario Andretti. Under Kmart’s sponsorship, Michael Andretti and Mansell secured championships in 1991 and 1993 respectively. In 1993, Kmart also sponsored Andretti’s McLaren entry in Formula One. Additionally, the brand backed NASCAR events including the Kmart 400 races held at Michigan International Speedway and North Carolina Speedway. Kmart’s inaugural NASCAR victory came with Lake Speed at Darlington Raceway in 1988. The company sponsored three-time champion Darrell Waltrip during his final full seasons (1999–2000) and later supported Boris Said’s #60 Ford Fusion in the 2006 season.

Operations in Puerto Rico

The S. S. Kresge company made its debut in Puerto Rico on November 25, 1959, launching a 17,678 square-foot outlet within San Juan’s 65th Infantry shopping center. Throughout the 1960s, the chain expanded with new stores opening in Bayamón (1960), Santurce (1962), Ponce (1962), and Río Piedras (1965). However, starting in June 1987, Kresge outlets on the island began to close.

Kmart entered the Puerto Rican market on October 21, 1964, unveiling a 69,000 square-foot store at San Patricio Plaza in Guaynabo. After a fire destroyed this location on December 31, 1967, it was reconstructed and resumed operations by January 30, 1969. The chain further grew with a third store inaugurated in Trujillo Alto in May 1979, increasing Kmart's total presence to 1,532 stores across the United States and Canada.

In May 1983, Kmart acquired leases for five former Barker's Discount Department Stores sites on the island for around $2.1 million. By October of that year, three of these stores had reopened—in Bayamón (Plaza Río Hondo and Rexville Plaza) and Arecibo (Plaza del Atlántico). This expansion brought Kmart’s count in Puerto Rico to twelve stores—six under the Kmart brand and six as Kresge—employing over 700 workers.

By April 1998, plans were underway for a $25 million investment aimed at converting eight of Kmart’s 21 Puerto Rican stores into Big Kmart formats, alongside launching two new outlets in Vega Alta and Plaza Las Américas mall. Additional Big Kmart locations opened at Montehiedra Town Center, Los Colobos (Carolina), Plaza Guayama, Cayey, San Patricio Plaza, and Las Catalinas Mall (Caguas). The Plaza Las Américas store became the largest on the island at 144,000 square feet.

Between 2002 and 2003, three stores shuttered during bankruptcy proceedings: Humacao (2002), Juncos Plaza (2003), and Cayey (2003). In 2011, Kmart introduced an 8,000 square-foot "Kmart Express" outlet at Plaza Carolina mall; however, this concept was short-lived.

Throughout the 2010s and beyond, Kmart significantly reduced its footprint in Puerto Rico with multiple closures: two stores shut down in 2015 (Señorial Plaza San Juan and Vega Baja); three closed in December 2018 (San Patricio Plaza, Las Catalinas Mall, San Germán); five ceased operations in August 2019 (Aguadilla, Trujillo Alto, Cayey, Carolina, Yauco); another five closed in November 2019 (Fajardo, Juana Díaz, Arecibo, Plaza Río Hondo, Vega Alta); one store closed at Plaza Centro Mall Caguas in January 2020; two closures followed in June 2020 (Plaza Guaynabo and Ponce); and two more locations closed in December 2020 (Rexville Town Center Bayamón and Western Plaza Mayagüez).

On October 15, 2022, the final remaining Kmart store on the island at Plaza las Américas permanently ceased operations as the company withdrew entirely from Puerto Rico. Prior to this closure, mall management had been negotiating extensively to secure a replacement tenant.

Operation in Guam

Kmart’s store located in Tamuning, Guam caters to both local American residents and visitors from Asia. Established in May 1995, this expansive facility covers 170,000 square feet and recorded annual revenues of $100 million by 2018—the highest sales figure among all Kmart outlets at that time. It also boasted the largest customer base due to limited competition locally and minimal online shopping alternatives. This distinctive market environment led The Wall Street Journal to label it a retail "Galapagos."

Australia and New Zealand

Kmart Australia inaugurated its initial outlet in 1969 at Burwood East, Victoria, a location that was subsequently redeveloped into the Burwood One shopping center. The brand was established through a partnership between G.J. Coles & Coy Limited (Coles) and the S.S. Kresge Company, with Kresge owning 51% and Coles holding 49%. The first store in New Zealand opened in Henderson, Auckland, in 1988. In 1994, Kresge withdrew from the alliance by selling its share to Coles Myer, which succeeded Coles. After Coles Myer dissolved in 2007, control of the Australian and New Zealand Kmart outlets was assumed by Wesfarmers.

Canada

Kmart commenced Canadian operations with a store launch in Huron Heights, Ontario on March 14, 1963, followed shortly by a second location in Windsor, Ontario on May 9, 1963.

Between 1983 and 1984, five stores in Greater Montreal were closed. By 1994, Kresge had fully exited the Canadian market. In December 1997, amid financial difficulties, Kmart Canada announced the shutdown of ten out of its 122 stores. By May 1998, the remaining 112 locations were sold to rival retailer Zellers, part of the Hudson's Bay Company. Following this acquisition, most of these stores were either closed or rebranded as Hudson's Bay Company outlets, predominantly under the Zellers banner.

Slogans

• The Saving Place (1960s–1990)
• Your Lowest Price is a Kmart Price (1990–1998)

Caribbean

During the early 2000s, Kmart sought to expand into Caribbean markets where Wal-Mart and Target had no footprint; however, none of these stores advanced beyond the construction phase due to Kmart’s bankruptcy filing in 2002, which led to halted payments to contractors. Construction of a Super Kmart in Trinidad began in 2001 but was suspended at approximately 80% completion in 2002. Additional planned sites in Barbados, the Dominican Republic, and Jamaica never came to fruition as financial challenges prevented further development.

Europe

In 1992, Kmart acquired numerous department stores formerly operated under communist regimes across Eastern Europe, including thirteen locations within the former Czechoslovakia. Certain stores, such as the one in Bratislava, recorded strong sales performance. Nevertheless, by March 1996, due to operational difficulties in the U.S., Kmart divested its six Czech and seven Slovak outlets to British retailer Tesco for about $117.5 million to concentrate on its North American operations.

Mexico

Kmart expanded into Mexico during the 1990s through a collaboration with retailer Liverpool, launching four supercenter-format stores in suburban areas of Mexico City. Roughly half of each store’s floor space was allocated to groceries tailored for local consumer preferences. In 1997, these locations along with one unfinished site were sold to Mega—a Mexican hypermarket chain under Comercial Mexicana. All stores remain operational under this brand except for the Tlalnepantla location, which was demolished in 2004 to make way for a Costco.

Singapore

In August 1993, Kmart announced plans to enter Singapore via a joint venture with Metro Holdings’ subsidiary Metro (Private) Limited under the brand name K-Mart Metro. The first outlet opened at Marina Square (9,700 m²) in May 1994, followed by additional stores at Lucky Plaza (July 1994) and Century Square (October 1995). By mid-1996, despite running three stores, Kmart decided to close all locations due to poor performance resulting in a $17 million loss for Metro.

Management

• S. S. Kresge, Founder (served as president from 1899 to 1925; CEO from 1925 to 1966)
  • Charles Belden Van Dusen (president, 1925–1938)
  • Robert R. Williams (president, 1938–1946)
  • D. C. Fisher (president, 1946–1953)
  • Franklin P. Williams (president, 1953–1958)
• Harry Blair Cunningham (held roles as president and general manager from 1959 to 1972; CEO between 1966 and 1972)
• Robert E. Dewar (president in 1970; CEO from 1972 through 1980)
  • Ervin Wardlow (president in 1972)
• Bernard Fauber (chairman and CEO, 1980–1987)
• Joseph E. Antonini (CEO from 1987 until May 1995)
• Floyd Hall (served as president and chairman from June 1995 to April 2000; CEO between June 1995 and March 2002)
• Charles Conaway (chairman and CEO, 2000–2002)
  • Mark Schwartz (president and COO until January 2003)
• James B. Adamson (president, chairman, and CEO from 2002 until January 2003)
• Julian Day (president and COO starting March 2002; held the positions of president, COO, and CEO from January 2003 to September 2004)
• Aylwin Lewis (president and CEO from October 2004 through December 2007)
• W. Bruce Johnson (January 2008 – February 2011)
• Herman Darling (March 2011 – December 2012)
• Eddie S. Lampert (served from January 2013 to October 2018; continued as board member following bankruptcy filing)

See also

• Kmart Australia
• Sears Holdings
• Transformco

Further reading

• Archived on Ghostarchive and the Wayback Machine: