Jump to content

Kmart

From Alfawiki
Kmart
Company typeSubsidiary
IndustryRetail
FoundedOctober 1, 1899; 127 years ago (1899-10-01) in Detroit, Michigan, United States
FounderS. S. Kresge
Headquarters
Hoffman Estates, Illinois
,
United States
Area served
United States and its territories
ProductsApparel, electronics, household items, automotive products, pharmaceuticals, gardening supplies
OwnerTransformco
ParentTransformco
Websitewww.kmart.com

Kmart ( ), previously known as Kmart Corporation, is a department store chain and e-commerce retailer operating within the United States and its territories, managed by Transformco. Presently, it maintains four large-format stores—three located in the US Virgin Islands and one in Tamuning, Guam. The final full-scale store on the U.S. mainland ceased operations in 2024, leaving behind a smaller Garden Shop outlet in Kendale Lakes, Florida, with the neighboring property leased to another business.

Established by S. S. Kresge in 1899 under the name S. S. Kresge Corporation, it adopted the Kmart Corporation title in 1977. The inaugural Kmart retail location debuted in 1962 in Garden City, Michigan. At its height in 1994, Kmart managed 2,486 stores worldwide, which included 2,323 discount outlets and Super Kmart Centers across the United States. Between 2005 and 2019, it functioned as a subsidiary of Sears Holdings Corporation, which also owned Sears. Since 2019, ownership has transferred to Transform SR Brands LLC (Transformco), a privately held entity created to acquire assets from Sears Holdings.

Based in Hoffman Estates, Illinois, Kmart offers merchandise encompassing apparel, electronics, household items, automotive products, pharmaceuticals, and gardening supplies. Its online store services all 50 states along with military APO/FPO addresses but excludes certain U.S. territories.

In 2015, under Sears Holdings’ umbrella, Kmart reported revenues totaling $25.146 billion. The company’s operational approach shifted from a vast retail presence to a more focused model emphasizing selected markets and enhanced e-commerce capabilities under Transformco’s strategic direction.

This corporate overview underscores Kmart’s role as a retail innovator, chronicles its decline in market share amid increasing competition, and outlines ongoing initiatives aimed at growth through digital innovation and concentrated market engagement.

Early years

S. S. Kresge, who founded the enterprise that evolved into Kmart, began his retail journey supplying merchandise to Frank Winfield Woolworth's stores. In 1897, he invested $6,700 into a five-and-dime store located in Memphis, Tennessee, co-owned alongside John G. McCrory. Expansion followed with a second store in Detroit, marking the inception of the original S.S. Kresge outlets. After two years, Kresge exchanged his interest in the Memphis location for full control of the Detroit store and partnered with his brother-in-law Charles J. Wilson to establish the Kresge & Wilson Company.

By 1912, the S.S. Kresge Company was incorporated in Delaware with an operating count of 85 stores and underwent reorganization in 1916 under Michigan incorporation to form the basis of the current company structure. The firm went public on May 23, 1918, listing on the New York Stock Exchange. During World War I, Kresge experimented with increasing price limits within stores up to $1.

By 1924, S.S. Kresge’s net worth was estimated at around $375 million with real estate holdings valued near $100 million. The company experienced rapid growth from 257 stores in 1924 to 597 by 1929. Although Kresge stepped down as president in 1925, he continued serving as chairman. Despite challenges during the Great Depression that forced some closures, the chain expanded to 682 stores by 1940. The post-war suburban shift altered consumer behavior and shopping patterns significantly, influencing subsequent business strategies and market positioning efforts.

1960s–1970s

Under the leadership of executive Harry Cunningham, the S.S. Kresge Company introduced the inaugural Kmart store on January 25, 1962, located in San Fernando, California. This initial outlet featured a smaller "bantam" format originally intended to be a Kresge store. Shortly thereafter, the first full-scale Kmart, encompassing 80,000 square feet, opened its doors in Garden City, Michigan. Cunningham, along with Sam Walton, drew inspiration from their visit to discount retailer Ann & Hope in 1961. That year saw the launch of seventeen additional Kmart stores. Additionally, the decade witnessed the rise of Kmart Foods, a supermarket chain that has since ceased operations. Despite the growth of Kmart outlets, the company continued to operate under the S.S. Kresge name.

Founder Sebastian Spering Kresge passed away in 1966 at the age of 99.

During this era, underperforming S.S. Kresge locations were rebranded as "Jupiter Discount Stores," a straightforward discount retail concept. Throughout the 1970s, Kmart pursued aggressive expansion strategies, surpassing competitors including Zayre, Ames, Bradlees, Caldor, and Hills, as well as chains managed by MMG-McCrory Stores. Reflecting its evolving focus on discount retailing, in 1977 the company officially adopted the name K Mart Corporation.

1980s

Bernard M. Fauber assumed the roles of chairman and CEO of Kmart in 1980, steering the company through a period of substantial growth. By April 1981, Kmart celebrated the opening of its 2,000th store in Kearny, New Jersey, ending the year with a total of 2,055 stores across both the United States and Canada.

In 1987, Kmart divested its remaining 76 U.S.-based Kresge and Jupiter stores to McCrory Stores, effectively ending those brands’ presence in the U.S., although Canadian operations persisted until 1994.

The company explored co-branding initiatives during this period, such as converting an in-store cafeteria into a Wendy's restaurant in Canton, Michigan in 1985 and collaborating with Bruno’s Supermarket to develop the American Fare hypermarket concept.

Up until November 1990, Kmart ranked as the second-largest retailer in the U.S., trailing only Sears before Walmart surpassed it. In the late 1980s and early 1990s, Kmart broadened its corporate scope beyond traditional retail outlets by acquiring subsidiaries like Sports Authority, Builders Square, and Waldenbooks, demonstrating a diversification strategy.

Blue Light Special

The Blue Light Special was a time-limited in-store sales promotion marked by a rotating blue light and the announcement "attention Kmart shoppers," which became widely recognized culturally. Launched in 1965 to accelerate sales of slower-moving stock, it was discontinued in 1991 but saw intermittent revivals during the 2000s—including brief returns in 2001 and 2005, select Saturdays in 2009, and once more in November 2015.

1990–2001: New image

In 1990, Kmart refreshed its branding with a new logo featuring a red block "K" enclosing "mart" in script, replacing its previous turquoise italicized design. This logo remained until 2004. That same year marked the debut of Little Caesars Pizza within stores—leveraging their common Michigan heritage. In 1995, Kmart briefly adopted the moniker Today's Kmart.

The company formally changed its name to Kmart Corporation in 1991. In 1992, it ventured into Eastern Europe by acquiring thirteen stores located in former Czechoslovakia but divested these assets by 1996. To enhance competitiveness, Kmart secured exclusive merchandise lines from personalities including Martha Stewart, Kathy Ireland, Jaclyn Smith, Lauren Hutton, and Thalía; it also offered licensed products from franchises such as Sesame Street and Disney. Prominent spokespeople included Rosie O'Donnell and Penny Marshall.

July 1991 saw the introduction of Super Kmart Center, combining full-service grocery with general merchandise formats. Despite multiple openings nationwide, many Super Kmarts closed between 2011 and 2018 due to declining performance. The Big Kmart concept launched in Chicago in 1997 emphasized home fashions, children's clothing, and consumables; by 1998 Big Kmarts represented approximately 62% of all stores following conversions of acquired former Venture locations. Around the year 2000 peak operation included roughly 1,900 Big Kmarts alongside about one hundred Super Kmarts and traditional outlets.

Kmart acquired The Sports Authority in 1990 but divested it five years later. The company reached its financial zenith around 1992; subsequent declines were attributed to intensified competition from Walmart, Target, and online retailers. Unlike rivals who invested heavily in supply chain technologies, Kmart underfunded these areas while maintaining high dividend payouts that limited reinvestment capacity. Analysts also pointed to inconsistent brand positioning as a weakness.

In September 1995, Kmart sold its auto repair centers to Penske Corporation for $112 million to concentrate on retail operations; these centers ultimately closed under Penske management by 2002 following disputes.

The introduction of the Kmart Cash Card occurred in 1997 as a replacement for paper gift certificates. By July 1999, partnerships with SuperValu and Fleming were established to manage $3.9 billion worth of food distribution across stores. In 2000, a co-branded MasterCard was launched with Capital One alongside expansion of Martha Stewart’s Everyday Garden Collection to include live plants and home accessories.

July of that year also involved closing seventy-two underperforming locations while inaugurating new Big Kmart and Super Kmart Centers as part of restructuring efforts focused on upgraded checkout systems and inventory management technology.

Early in 2001 saw further Super Kmart openings aligned with expansion plans; however, filing for bankruptcy protection in January 2002 halted additional developments.

That same year included securing a $4.5 billion exclusive food supply agreement with Fleming.

Legal disputes arose during this period: Sega filed suit over unpaid Dreamcast consoles (February 2001), while Target initiated litigation regarding misleading "Dare to Compare" advertising claims (August 2001).

2002–2009: Integration with Sears

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 found success at CVS Corporation, assumed control supported by a $5 million loan. Both executives were later charged with deceiving shareholders and misappropriating company resources for personal benefit. Conaway acknowledged full responsibility, resulting in his resignation and repayment of loans as Kmart underwent reorganization.

The company shuttered more than 300 outlets across the United States, including all stores in Alaska, and eliminated approximately 34,000 positions. Kmart experimented with five prototype stores featuring a new lime green logo and refreshed interior design in Michigan and Illinois; however, financial constraints prevented a complete rollout. This lime green concept was eventually replaced by the "Orange" prototype introduced in 2006.

During the bankruptcy proceedings, hedge fund ESL Investments, led by Edward Lampert, acquired a significant portion of Kmart’s debt and expedited the restructuring process. In 2002, Kmart opened only one new store—in Somers Point, New Jersey—which remained its final new location until its closure in December 2019. On January 13, 2003, the company closed 326 unprofitable stores.

Kmart exited bankruptcy on May 7, 2003, and began trading on NASDAQ as KMRT on June 10. Lampert became chairman while ESL Investments held a controlling 53% stake after investing less than $1 billion. Lampert prioritized profitability over increasing sales volume by enhancing inventory controls and reducing expenses. By late 2003, Kmart posted its first profitable quarter in three years but subsequently returned to losses.

On July 23, 2004, Kmart unveiled a redesigned logo featuring a prominent red "K" with lowercase "kmart" beneath it. The following month saw the launch of the exclusive clothing line Attention in collaboration with E! Entertainment Television, building on earlier partnerships with the WB Network. On November 8, 2004, Kmart introduced the Kmart Rewards credit card program managed by HSBC Bank.

On November 17, 2004, Kmart announced its $11 billion acquisition of Sears, creating Sears Holdings Corporation to oversee both retail brands. The corporate headquarters relocated to Hoffman Estates, Illinois; the previous Troy, Michigan facility was sold in 2012.

In 2005, Sears Holdings launched Sears Essentials stores—concepts blending features from both Kmart and Sears formats—that were rebranded as Sears Grand stores in 2006. Beginning in 2005, Kmart began remodeling locations to the Orange prototype design, incorporating orange and brown color schemes with improved visibility and expanded appliance and hardware sections showcasing Sears’ Kenmore and Craftsman product lines. Several former Kmart auto centers were reopened as Sears Auto Centers.

July 2009 marked the opening of Sears Holdings’ first Sears-branded appliance store inside a Birmingham, Alabama Kmart location—a larger store-within-a-store format compared to typical Kmart appliance departments.

By October 2009, Kmart did not renew its partnership with Martha Stewart Living Omnimedia after Stewart publicly criticized the retailer’s decline following the merger.

In November 2009, Kmart recorded its first year-over-year sales growth (0.5%) since 2005 and only its second increase since 2001, indicating modest progress amid ongoing challenges.

2010–2018: Kmart and Sears Holdings

During the 2010s, numerous Kmart locations became increasingly outdated and fell into disrepair. On December 27, 2011, Sears Holdings revealed intentions to shutter between 100 and 120 Sears and Kmart outlets. By 2014, amid financial struggles at Sears Holdings, Kmart was closing dozens of stores across the United States, generating $1.445 billion through asset disposals, debt issuance, and loans aimed at boosting liquidity. Company representative Howard Riefs explained that these closures were measures to cut costs and reinvent the company’s business approach.

In October 2014, Kmart experienced a data breach that compromised customer credit and debit card details; however, the company confirmed that no personal information or data related to kmart.com users was affected.

The chain persisted with widespread store shutdowns: in April 2016, it declared plans to liquidate 68 locations; by September of the same year, an additional 64 stores were closed. Despite CEO Eddie Lampert's assurances that Kmart would continue operating with a focus on integrated retail strategies and the Shop Your Way loyalty program, closures continued unabated. From late 2016 through 2017, many more stores nationwide ceased operations, including the final outlets in Alabama and Rhode Island. Some shutdowns were prompted by external incidents, such as the destruction of the Santa Rosa store due to wildfire in October 2017.

Towards the end of 2017, Kmart redirected its marketing efforts from traditional television advertising to digital channels. Following another disappointing holiday sales period, in January 2018 the company announced it would liquidate an additional 64 stores, among them the last Super Kmart in Warren, Ohio. Industry analysts forecasted the brand’s near-term extinction.

In March 2018, Sears Holdings reported a modest profit for Q4 2017, largely attributed to tax refunds despite ongoing declines in sales. CEO Lampert acknowledged uncertainties regarding Kmart’s sustainability as an independent retailer and indicated a strategic pivot toward enhancing online shopping rather than maintaining physical stores.

Throughout 2018, Sears Holdings continued to close and auction off numerous Sears and Kmart stores across various states, including the final Kmart locations in Vermont and Hawaii. By midyear, over 100 underperforming stores were slated for closure with liquidation sales underway. Additional rounds of store shutdowns were announced through November as Sears Holdings aimed to stabilize its financial standing amid persistent challenges.

2018–2019: Second bankruptcy

On October 15, 2018, Sears Holdings filed for Chapter 11 bankruptcy protection and announced plans to close 142 stores—63 of which were Kmarts—including the last remaining Kmart in Arkansas as well as key outlets in Georgia and Kansas. This event marked the second bankruptcy filing for Kmart within a span of sixteen years. By November 8, Sears Holdings expanded closure plans by adding another 40 stores to be shut down, including 11 Kmarts. On November 23, Sears published a list identifying 505 stores—including 239 Kmarts—as potential sale candidates during bankruptcy proceedings; however, liquidation remained a possibility. On December 28, an additional wave of closures was declared involving 80 locations with 37 Kmarts among them.

In January 2019, Sears Holdings proposed retaining operations at 202 Kmart stores along with 223 Sears outlets primarily situated in heavily populated coastal markets. On January 15, facing the threat of Chapter 7 liquidation, a bankruptcy judge mandated renewed negotiations with Chairman Eddie Lampert that resulted in a last-minute agreement to keep up to approximately 400 Sears and Kmart stores operational. By January 19, ESL Investments—Lampert’s investment firm—was confirmed as the successful bidder preserving some retail locations.

However, on January 24 unsecured creditors such as Simon Property Group contested this arrangement, accusing Lampert of asset stripping that harmed suppliers and landlords while advocating liquidation to maximize creditor recoveries. The Pension Benefit Guaranty Corporation also opposed the deal due to a $1.7 billion pension shortfall that could impose burdens on taxpayers. In February ESL outlined intentions to close three Kmart stores monthly if its acquisition received approval.

A U.S. bankruptcy judge sanctioned Lampert’s purchase in February 2019, enabling Sears Holdings’ most valuable assets to continue operations under a new entity named Transform Holdco (Transformco). This entity managed roughly 425 combined Sears and Kmart locations despite ongoing financial difficulties and disputes with creditors.

2019–present: Leadership Changes and Withdrawal from the U.S. Market

The transfer of 202 Kmart outlets to Transform Holdco was finalized in February 2019, with the remaining stores undergoing liquidation to help satisfy Sears Holdings’ creditor obligations. By May of the same year, Kmart declared the shutdown of its Walla Walla, Washington location, which had been in operation for nearly 45 years. Throughout late 2019 and into early 2020, Transformco revealed several rounds of closures—84 stores in October and another 96 by February 2020—explaining these decisions as part of a continuous assessment of their retail presence amidst financial difficulties and new capital injections from investors.

On November 21, 2021, Kmart shuttered its final store in Michigan, effectively ending its presence in the state where it was originally founded. Additional closures followed, including the last West Coast store in Grass Valley, California, in December 2021 and the Hamilton, Montana location in March 2022. By early 2022, only four Kmart outlets remained operational across the United States, with half situated in New Jersey. The Avenel store in New Jersey closed in April 2022, leaving three remaining sites located in Miami (Florida), Westwood (New Jersey), and Bridgehampton (New York). The Westwood store ceased operations in October 2023 after more than four decades of business.

The Bridgehampton outlet closed on October 20, 2024; it had survived longer than other stores due to minimal competition nearby from Walmart and Target. This closure left the Miami store as the only full-sized Kmart within the continental United States, alongside four additional locations in U.S. territories. In March 2023, the Miami store was downsized to approximately the footprint of a CVS or Walgreens pharmacy, operating out of its former garden center area with a limited assortment of products; the remaining space was leased to an At Home retailer. This particular store originally opened on November 3, 1977.

In May 2025, it was announced that the Sunny Isle shopping center Kmart on St. Croix in the U.S. Virgin Islands—the last on that island—would close by August due to lease non-renewal. Two years earlier, another St. Croix location in Frederiksted had ceased operations after being open since June 1993. In June 2025, plans were made for the Lockhart Gardens Kmart on Saint Thomas to close by mid-August as well. These closures will leave only one Kmart on Saint Thomas at Tutu Park Mall, along with remaining stores located in Guam and Miami.

Headquarters

Sears Holdings Corporation, which once owned Kmart, maintained its headquarters on Beverly Road in Hoffman Estates, Illinois. In December 2021, Transformco announced intentions to sell this corporate office early in 2022. Currently, company operations are conducted from a different facility on Trillium Boulevard within the same city.

Kmart’s previous headquarters were situated at 3100 W. Big Beaver Road in Troy, Michigan, part of the Metro Detroit area. This complex comprised twenty-three interconnected sections, mostly three stories tall; DBusiness described it as "a study in inefficiency" due to its extensive and sprawling design.

Current

  • Kmart operates as a discount department store chain commonly found either as standalone buildings or within strip malls. Its merchandise includes electronics, apparel, household items, sporting goods, toys, office supplies, health-related products, and a limited selection of groceries. Store sizes vary considerably. Many locations were rebranded under Big Kmart or transformed into Super Kmart formats.

Former

  • American Fare operated as a hypermarket chain from 1989 to 1994 through a partnership with Bruno's Supermarkets. These stores combined groceries, general merchandise, apparel, and services such as food courts and salons. Kmart assumed full control in 1992 but shuttered all locations by 1994. The brand name remains on select Kmart store-brand consumables.
  • Big Kmart focused on home furnishings, children's apparel, and broadened food offerings including fresh meat and baked goods. Store formats varied from to , incorporating pharmacies, garden centers, tax service centers, and cafes. Rolled out company-wide in 1997; the final Big Kmart closed its doors in 2021.
  • BlueLight Internet service: Initiated by Kmart in 1999 as an ad-supported dial-up internet provider; it was spun off, reacquired, and ultimately sold to United Online in 2002 following Kmart's bankruptcy. By 2006, it served approximately 165,000 subscribers with a $14.95 monthly fee.
  • Borders bookstore chain was purchased by Kmart in 1992 and merged with Waldenbooks to create the Borders-Walden Group (which was sold in 1995). Borders later filed for bankruptcy and liquidated all outlets by 2011.
  • Builders Square, a home improvement superstore brand, was sold to Hechinger in 1997; Hechinger ceased operations in 1999.
  • Designer Depot: Discount apparel stores operating during the 1980s in Metro Detroit offering brand-name clothing at reduced prices.
  • K-Café: An in-store dining option providing typical fast-food menu items; discontinued by April 2018.
  • KDollar: Discount retail outlets selling Kmart merchandise at lower prices; frequently situated within former Kmart locations. The first store opened in Michigan in 2013 with additional sites following.
  • Kmart Chef was a fast-food hamburger and fries chain owned by Kmart from 1967 to 1974, operating up to eleven locations.
  • Kmart Dental: A single prototype dental clinic located inside a Miami Kmart store; not operated by Kmart itself.
  • Kmart Express gas stations and convenience stores were present at some Kmarts; expansion plans were halted after bankruptcy, with the last site closing in 2017.
  • Kmart Food Stores: A supermarket chain paired with Kmarts from 1962 until being phased out in the early 1980s.
  • Kwash: A laundromat prototype introduced in 2010 within a former auto bay; it closed along with the Iowa City Kmart location in 2017.
  • Makro: Dutch warehouse club chain with U.S. branches fully acquired by Kmart in 1989; stores were either converted or closed by 1990.
  • Office Square: An office supply and furniture retailer spun off from Builders Square; merged into OfficeMax following Kmart’s acquisition of OfficeMax in 1991.
  • OfficeMax: Office supply company purchased by Kmart in 1991 and sold off in 1995; later acquired by Office Depot in 2013.
  • Pace Membership Warehouse: Kmart’s warehouse club brand sold to Walmart; most locations were converted into Sam's Club or sold by 1993.
  • PayLess Drugs: Drugstore chain acquired by Kmart in 1985 and divested to TCH Corporation in 1994; ultimately integrated into Rite Aid by 1999.
  • The Sports Authority: Sporting goods retailer bought in 1990 and sold in 1995; ceased operations entirely in 2016.
  • Super Kmart Center was a superstore format () combining general merchandise with full grocery departments. Launched in 1991 and renamed Super Kmart in 1997. Amenities included pharmacies, delis, garden centers, arcades, tax services, and fuel stations. Most locations were closed or converted during early-2000s restructuring; the final store closed in Ohio in 2018 and was replaced by Meijer.
  • U-Pak was a brief no-frills supermarket adjacent to a Pontiac, Michigan Kmart that operated for a short time in 1979 before closing due to low sales.
  • Variety Outlet: Closeout retail chain primarily operating out of shuttered Kmart stores beginning in the mid-1990s.
  • Waldenbooks: Mall-based bookstore chain acquired by Kmart in 1984; merged with Borders to form the Borders-Walden Group (sold off in 1995); Borders Group ceased operations after filing for bankruptcy in 2011.

Philanthropy

Kmart's charitable initiatives were coordinated under the Kmart for Kids program, which supported notable organizations such as the March of Dimes, St. Jude Children's Research Hospital, and the American Diabetes Association. Over a span of more than three decades, Kmart contributed $114 million to the March of Dimes, establishing itself as the organization's leading corporate benefactor. In 2008, Don Germano, Senior Vice President and General Manager of Kmart stores, was appointed to serve a five-year term on the March of Dimes Board of Trustees.

Starting in 2006, Kmart’s annual Thanks and Giving campaign has been dedicated to assisting St. Jude Children's Research Hospital, having raised upwards of $59.2 million by 2008. The holiday campaign in 2013 achieved a record-breaking total of $21.9 million. In recognition of its support for the American Diabetes Association’s "Step Out: Walk to Fight Diabetes" initiative, Kmart received the "Outstanding Corporate Citizen" Award in 2008 after generating roughly $1.5 million through in-store fundraising efforts over two years. This accolade underscored Kmart’s commitment to philanthropy, community involvement, diversity, and employee participation.

Environmental record

On May 9, 2007, Kmart faced a penalty amounting to $102,422 due to breaches of federal regulations concerning hazardous waste management, clean water standards, and emergency planning across 17 distribution centers. The company responded by instituting spill prevention protocols, securing storm-water discharge permits, adhering to hazardous waste handling requirements, and coordinating reporting with local emergency agencies. Additionally, the EPA identified deficiencies in Kmart’s hazardous waste storage and disposal procedures, including improperly labeled oil drums at a facility in Pennsylvania.

Kmart also championed battery recycling programs; in 1990, it announced plans to invest approximately $80 million in full-page advertisements promoting a campaign that encouraged customers to recycle used batteries for a fee of $2 each. This effort was part of Kmart’s wider environmental responsibility and sustainability initiatives.

October 2014

In October 2014, Kmart revealed that some of its in-store payment systems had been infected with malware starting in early September, impacting several store locations.

September 2017

Between September 26 and October 12, 2017, malware infiltrated computers belonging to a service provider managing sears.com and kmart.com ecommerce platforms, resulting in the exposure of credit card information belonging to approximately 100,000 customers. This security incident was publicly disclosed in April 2018.

June 2018 incident

In June 2018, Sears Holdings reported that cybercriminals had accessed payment systems at multiple Kmart stores using advanced malware capable of evading detection by existing antivirus software, leading to theft of credit card data.

June 2021

From June 3 through June 15, 2021, unauthorized access occurred on Transformco servers that compromised payroll and healthcare information affecting both current and former employees of Kmart and other Transformco subsidiaries.

Animal welfare concerns

In 2012, Mercy for Animals uncovered evidence of animal cruelty at Christensen Farms—a pork supplier serving Kmart along with Walmart and Costco—documenting the use of gestation crates and mistreatment of piglets. In response to this investigation, Kmart pledged to eliminate the use of gestation crates among its pork suppliers over time.

Racing sponsorships

Kmart played a significant role as a sponsor in NASCAR and the now-defunct CART circuit, backing Newman/Haas Racing, a team owned by actor Paul Newman and former driver Carl Haas. Their CART roster featured champions such as Nigel Mansell and the father-son pair Michael and Mario Andretti. Under Kmart's sponsorship, Michael Andretti and Mansell secured championships in 1991 and 1993 respectively. Additionally, in 1993, Kmart supported Andretti's McLaren entry in Formula One. Within NASCAR, Kmart sponsored events including the Kmart 400 held at Michigan and North Carolina Speedway. The company's inaugural NASCAR victory occurred in 1988 with driver Lake Speed at Darlington Raceway. They also sponsored three-time champion Darrell Waltrip during his final full seasons from 1999 to 2000, as well as backing Boris Said's #60 Ford Fusion in 2006.

Operations in Puerto Rico

The S. S. Kresge chain made its debut in Puerto Rico on November 25, 1959, launching a 17,678 sq ft outlet within San Juan's 65th Infantry shopping center. Throughout the 1960s, further Kresge locations were established across the island, including Bayamón, Santurce, Ponce, and Río Piedras. By June 1987, some of these Kresge stores began shutting down.

Kmart entered the Puerto Rican market on October 21, 1964, unveiling a 69,000 sq ft store at San Patricio Plaza in Guaynabo. After a fire devastated this location in December 1967, it was reconstructed and reopened by January 1969. A third Kmart store opened its doors in Trujillo Alto in May 1979, bringing the total number of stores across the US and Canada to 1,532.

In May 1983, Kmart purchased five leases from the bankrupt Barker's Discount Department Stores for $2.1 million, reopening three outlets by October of that year—two in Bayamón and one in Arecibo—raising employment on the island to over 700 staff across twelve stores (six Kmart and six Kresge).

By 1998, plans were underway for an investment exceeding $25 million to convert eight out of twenty-one Puerto Rico stores into Big Kmart formats along with launching two new locations at Vega Alta and Plaza Las Américas mall. Regional manager James Mesenbring announced four additional Big Kmart openings at Montehiedra Town Center, Los Colobos (Carolina), Plaza Guayama, and Cayey. Throughout that year, further store conversions took place; notably, the Plaza Las Américas location became the island’s largest retail space at 144,000 sq ft.

Between 2002 and 2003, three Puerto Rican stores closed amid bankruptcy proceedings—Humacao (2002), Juncos Plaza (2003), and Cayey (2003). In 2011, a smaller "Kmart Express" concept briefly operated within Plaza Carolina mall.

Throughout the 2010s and beyond, Kmart gradually reduced its presence: two closures occurred in 2015 (Señorial Plaza in San Juan and Vega Baja), followed by three more in December 2018 (San Patricio Plaza, Las Catalinas Mall, San Germán). In August 2019, five additional stores shut down (Aguadilla, Trujillo Alto, Cayey, Carolina, Yauco), with another five closures following in November of that year (Fajardo, Juana Díaz, Arecibo, Plaza Río Hondo, Vega Alta). A further shutdown took place in January 2020 at Plaza Centro Mall (Caguas).

Mid-2020 saw two more store closures—in Guaynabo’s Plaza Guaynabo mall and Ponce—with two additional locations closing in December at Rexville Town Center (Bayamón) and Western Plaza (Mayagüez). On October 15, 2022, the final remaining Kmart outlet on the island at Plaza las Américas announced its permanent closure, marking the end of all operations in Puerto Rico. Mall owners had spent months negotiating to secure new tenants before the chain agreed to vacate.

Operations in Guam

The Kmart outlet in Tamuning, Guam, commenced operations in May 1995 and encompasses 170,000 square feet. It caters to both local American shoppers and visitors from Asia. By 2018, this location achieved $100 million in yearly revenue, ranking it as the top-performing Kmart store with the largest clientele. Its geographical isolation and the scarcity of local online retail alternatives offer a distinctive market edge.

Australia and New Zealand

Kmart's inaugural Australian store opened in 1969 at Burwood East, Victoria, the current site of the Burwood One shopping center. The establishment of Kmart Australia was a joint venture between G.J. Coles & Coy Limited (Coles) and the S.S. Kresge Company, with Kresge owning a 51% stake. Expansion into New Zealand started in 1988 with a store located in Henderson, Auckland. In 1994, Kresge divested its interest by transferring its shares to Coles Myer, Coles' successor entity. Following Coles Myer's breakup in 2007, ownership of Kmart's Australian and New Zealand operations passed to Wesfarmers.

Canada

Kmart made its Canadian debut on March 14, 1963, with a store in Huron Heights, Ontario, soon followed by another in Windsor, Ontario. The company encountered difficulties leading to the closure of five locations within Greater Montreal by 1984. The predecessor brand Kresge withdrew completely from Canada by 1994.

In December 1997, amid financial woes, Kmart announced plans to shut down ten out of its 122 Canadian outlets. By May 1998, the Canadian division—comprising 112 stores—was sold to rival Zellers, part of the Hudson's Bay Company. Post-acquisition, most former Kmart stores were either closed or rebranded under Hudson's Bay Company banners, primarily Zellers, signaling Kmart’s exit from the Canadian retail sector.

Advertising 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 territories lacking Wal-Mart or Target presence; however, no stores opened before the company's 2002 bankruptcy halted all construction efforts. A Super Kmart location in Trinidad was approximately 80% complete when work ceased. Additional plans included stores in Barbados, the Dominican Republic, and Jamaica.

Europe

In 1992, Kmart acquired multiple former communist-era department stores across Eastern Europe, including thirteen outlets in Czechoslovakia. Certain locations, such as Bratislava, recorded strong sales performances. Nevertheless, by 1996, due to operational difficulties in the U.S., Kmart divested its six Czech and seven Slovak stores to British retailer Tesco for around $117.5 million to concentrate on its North American markets.

Mexico

During the 1990s, Kmart entered Mexico through a partnership with retailer Liverpool, launching four supercenters in suburban areas of Mexico City. Approximately half of each store’s floor space was devoted to groceries tailored to local tastes. In 1997, Kmart sold these stores along with an unfinished site to Mexican hypermarket chain Mega (part of Comercial Mexicana). These locations continue operating under the Mega brand except for the Tlalnepantla store, which was demolished in 2004 to make way for a Costco.

Singapore

In August 1993, Kmart revealed intentions to enter the Singaporean market through a partnership with Metro Holdings’ subsidiary, Metro (Private) Limited, launching stores under the name K-Mart Metro. The inaugural store debuted in May 1994 within Marina Square Shopping Center, spanning 9,700 m², followed by additional branches at Lucky Plaza in July 1994 and Century Square in October 1995. Although three outlets were established, Kmart withdrew from Singapore by June 1996, shutting down all locations and causing Metro to absorb a $17 million loss.

Management

  • S. S. Kresge, Founder (president 1899–1925; CEO 1925–1966)
    • 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 (president and general manager 1959–1972; CEO 1966–1972)
  • Robert E. Dewar (president 1970; CEO 1972–1980)
    • Ervin Wardlow (president 1972)
  • Bernard Fauber (chairman and CEO 1980–1987)
  • Joseph E. Antonini (CEO 1987 – May 1995)
  • Floyd Hall (president and chairman June 1995 – April 2000; CEO June 1995 – March 2002)
  • Charles Conaway (chairman and CEO 2000–2002)
    • Mark Schwartz (president and COO until January 2003)
  • James B. Adamson (president, chairman, and CEO 2002 – January 2003)
  • Julian Day (president and COO March 2002; president, COO, and CEO January 2003 – September 2004)
  • Aylwin Lewis (president and CEO October 2004 – December 2007)
  • W. Bruce Johnson (January 2008 – February 2011)
  • Herman Darling (March 2011 – December 2012)
  • Eddie S. Lampert (January 2013 – October 2018; continued as board member following bankruptcy filing)

See also

Further reading

External links