Office Square

Kmart

Logo used since 2004
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 , United States
Area served	United States and its territories
Products	Department store merchandise including apparel, appliances, electronics, kitchenware, groceries
Owner	Transformco
Parent	Transformco
Website	www.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. Since 2019, it has been managed by Transformco.

Originally established in 1899 under the name S. S. Kresge Corporation, Kmart expanded to operate a total of 2,486 locations globally at its peak in 1994. Its large-format stores offered an extensive variety of merchandise, including apparel, appliances, electronics, kitchenware, and groceries.

The company's fortunes began to wane during the 1990s, culminating in a Chapter 11 bankruptcy filing in 2002. In 2005, a merger with Sears resulted in the creation of Sears Holdings Corporation. Store shutdowns persisted until Sears Holdings itself declared bankruptcy in 2018. Subsequently, Kmart became part of Transformco, a privately held firm established in 2019 to acquire assets from Sears Holdings. Additional store closures followed, with the final full-scale big-box location on the mainland United States closing its doors in 2024.

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

Founding and Early Development

The origins of the company that evolved into Kmart trace back to S. S. Kresge, who initially worked as a traveling salesman supplying merchandise to all 19 stores owned by Frank Winfield Woolworth. In 1897, Kresge invested $6,700—savings from his previous employment—into launching a five-and-dime store in Memphis, Tennessee, which he co-owned with former client John G. McCrory. The following year marked the opening of a second outlet in downtown Detroit, establishing the first S.S. Kresge stores. After two years, Kresge exchanged his stake in the Memphis store plus an additional $3,000 to gain full control of the Detroit location and partnered with his brother-in-law Charles J. Wilson to form the Kresge & Wilson Company.

By 1912, Kresge had incorporated the S.S. Kresge Company in Delaware with an initial portfolio of 85 stores. Four years later, he created a new incorporation in Michigan to oversee operations more directly, laying the foundation for what would become Kmart. The company went public on the New York Stock Exchange on May 23, 1918. During World War I, price ceilings were raised to $1 per item to accommodate market conditions. By 1924, Kresge's personal wealth was estimated at around $375 million, including real estate holdings valued near $100 million. The number of stores increased from 257 in 1924 to 597 by 1929. Although Kresge stepped down as president in 1925, he continued serving as chairman.

The economic downturn during the Great Depression impacted profitability and forced some store closures; however, by 1940, the total number of stores had recovered to 682. The postwar era brought significant changes due to suburban expansion influencing consumer shopping habits.

1960s–1970s

Under the leadership of executive Harry Cunningham, the S.S. Kresge Company launched its inaugural Kmart store, a 27,000-square-foot outlet, on January 25, 1962, in San Fernando, California. Initially intended to be a Kresge store, it was rebranded as Kmart late in the development stage. This opening occurred six months prior to the first Walmart store. The first full-scale Kmart, measuring 80,000 square feet, opened on March 1, 1962, in Garden City, Michigan. Both Cunningham and Sam Walton drew inspiration from the retail concept of Ann & Hope. During 1962 alone, seventeen more Kmarts were established. Additionally, the decade saw the introduction of Kmart Foods, a supermarket chain under the Kmart brand that has since been discontinued. Despite the growth of Kmart outlets, the company retained its official name as S.S. Kresge Company.

Founder Sebastian Spering Kresge passed away on October 18, 1966, at the age of 99.

Around the time of Kmart’s initial launch, underperforming S.S. Kresge stores were transformed into "Jupiter Discount Stores," a minimalist discount format. Throughout the 1970s, Kmart pursued aggressive expansion strategies that led to the closure of many competitors. Its primary rivals included chains such as Zayre, Ames, Bradlees, Caldor, Hills, and MMG-McCrory Stores’ brands like McCrory and J.J. Newberry. In 1977, S.S. Kresge Company officially changed its name to K Mart Corporation.

1980s: Last Kresge stores

Bernard M. Fauber assumed the roles of chairman and CEO at Kmart in 1980. By April 1981, the company celebrated the opening of its 2,000th store in Kearny, New Jersey, which remained operational until May 2021. By the close of that year, Kmart had grown to encompass 2,055 locations throughout the United States and Canada.

In 1987, Kmart divested its remaining 76 U.S.-based Kresge and Jupiter stores to McCrory Stores, marking the end of these brands in the United States; however, Canadian stores continued operations until 1994.

During the mid-1980s, Kmart experimented with co-branding initiatives by converting an in-store cafeteria in Canton, Michigan into a Wendy's restaurant in 1985 and collaborating with Bruno’s Supermarket to create the hypermarket brand American Fare.

Up until November 1990—when Walmart overtook it—Kmart held the position as the second-largest retailer in the U.S., behind Sears. During this era, corporate emphasis gradually shifted from expanding Kmart stores toward acquiring other companies such as Sports Authority, Builders Square, and Waldenbooks.

Blue Light Special

The Blue Light Special was a time-limited in-store promotion characterized by a rotating blue light and announced with the phrase "attention Kmart shoppers," which became ingrained in popular culture. Introduced in 1965 to accelerate sales of slow-moving inventory, this promotion was discontinued in 1991. However, Kmart intermittently revived it during the 2000s with brief returns occurring in 2001, 2005, Saturdays in 2009, and finally again in November 2015.

1990–2001: New image

In 1990, Kmart refreshed its logo by adopting a red block "K" with "mart" scripted inside it, replacing the previous italicized design. This rebranding was accompanied by store renovations and remained until a new logo replaced it in 2004. That same year also saw Little Caesars Pizza open its first restaurant within a Kmart store—a partnership rooted in both companies’ Michigan origins. In 1995, Kmart briefly adopted the moniker Today's Kmart.

The Super Kmart Center concept launched on July 25, 1991, in Medina Township, Ohio; it combined comprehensive grocery offerings with general merchandise under one roof. Although initially expanded nationwide, many Super Kmarts were later downsized or shuttered due to disappointing sales results; the final Super Kmart closed in Howland Township, Ohio, in April 2018.

In 1991, the company formally renamed itself Kmart Corporation. The following year marked an expansion into Eastern Europe through acquisition of stores in former Czechoslovakia; however, these were divested by 1996.

Kmart introduced exclusive product lines featuring personalities such as Martha Stewart, Kathy Ireland, Jaclyn Smith, Lauren Hutton, and Thalía. The retailer also licensed merchandise related to Sesame Street and Disney franchises and employed spokespersons including Rosie O'Donnell and Penny Marshall.

In September 1995, unprofitable auto repair centers were sold to Penske Corporation for $112 million; Penske subsequently closed these centers in 2002 following disputes.

The Big Kmart format debuted on April 23, 1997; it emphasized home furnishings, children's clothing, and consumables. Throughout the late ’90s and early ’00s most Kmarts were remodeled into this format. This approach initially yielded sales improvements between 10% and 15%. By 1998 Big Kmarts accounted for approximately 62% of all stores; after acquiring former Venture locations that year, by around 2000 there were roughly 1,900 Big Kmarts alongside about one hundred Super Kmarts and traditional stores each.

Kmart acquired The Sports Authority in 1990 but divested it five years later. The company's peak profitability occurred around 1992 but declined thereafter due to intensifying competition from Walmart, Target, and emerging online retailers. In response to declining performance, it announced plans to close 110 stores in 1994. Unlike its competitors who invested heavily in supply chain technology upgrades during this period,Kmart underinvested while maintaining high dividend payouts that constrained capital available for store enhancements. Analysts criticized its inconsistent branding efforts.

In 1997,Kmart introduced the Kmart Cash Card as a replacement for paper gift certificates to streamline returns and purchases. In July 1999,the company partnered with SuperValu and Fleming to distribute $3.9 billion worth of groceries through its stores.

The year 2000 saw the launch of a co-branded MasterCard with Capital One that replaced private-label credit cards.Kmart also expanded Martha Stewart’s Everyday Garden Collection to include live plants and seeds while introducing a complete housewares line under Martha Stewart Everyday Kitchen.

That July,Kmart closed seventy-two underperforming locations while simultaneously opening new Big Kmarts and converting several existing stores into Super Kmart Centers.The company unveiled plans for significant restructuring focused on modernizing checkout processes and improving inventory management systems.

1990–2001: Brand Revitalization

In 1990, Kmart revamped its visual identity by substituting the slanted "K" and turquoise "mart" with a bold red "K" block featuring "mart" in cursive. Shortly thereafter, the company initiated store renovations. This emblem remained until 2004 when a new logo was introduced. That same year marked the debut of Little Caesars Pizza outlets within Kmart locations, starting in Rochester, Michigan—notably, both brands share Michigan origins dating back to the late 1950s and early 1960s. In 1995, Kmart briefly adopted the name Today's Kmart as part of a rebranding effort.

By 2001, Kmart broadened its Super Kmart Center chain to incorporate grocery sections, opening multiple new stores. However, following its bankruptcy declaration in January 2002, all expansion and construction activities ceased. During that year, Kmart secured an exclusive $4.5 billion supply contract with Fleming to provide food and consumable goods.

That same year brought notable legal disputes for Kmart: Sega filed a lawsuit alleging an unpaid balance of $2.2 million related to Dreamcast gaming consoles, while Target pursued legal action over Kmart's "Dare to Compare" advertisements, accusing them of misleading price comparisons with Target’s merchandise.

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, previously recognized for expanding CVS Corporation, assumed control backed by a $5 million loan. Both executives were later implicated in allegations of shareholder deception amid the financial downturn while personally benefiting. Conaway accepted full accountability and was compelled to resign and repay loans as the company restructured.

Subsequent management changes led to the closure of over 300 stores across the United States—including every location in Alaska—and resulted in approximately 34,000 job cuts. The company introduced five prototype stores featuring a fresh lime green logo and redesigned interiors highlighting wider aisles and enhanced lighting; however, budget constraints prevented a full-scale rollout. This concept was eventually replaced by the "Orange" store design launched in 2006.

During bankruptcy proceedings, hedge fund ESL Investments, led by Edward Lampert, acquired a significant portion of Kmart’s debt and expedited restructuring efforts. On October 17, 2002, Kmart opened its last new store in Somers Point, New Jersey; this location remained operational until December 2019.

On January 13, 2003, Kmart announced the closure of 326 unprofitable outlets. The company emerged from bankruptcy on May 7, 2003, and resumed trading on NASDAQ as KMRT on June 10. Lampert became chairman with ESL Investments holding a majority stake of 53% following an investment below $1 billion. His strategy prioritized boosting profitability through inventory streamlining, cost reductions, and shuttering underperforming stores. By the fourth quarter of 2003, Kmart reported its first profitable quarter in three years but later reverted to losses.

On July 23, 2004, Kmart revealed a new logo featuring a prominent red "K" alongside lowercase "kmart." In August of that year, it launched the exclusive Attention apparel line in collaboration with E! Entertainment Television to promote E! News Live, following an earlier partnership with the WB Network for branded clothing placements.

In November 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, resulting in the formation of Sears Holdings Corporation which operated both retail brands. The corporate headquarters relocated to Hoffman Estates, Illinois; meanwhile, the former Troy, Michigan facility was sold in 2012 without announced plans for redevelopment.

In 2005, Sears Holdings launched Sears Essentials stores—standalone hybrid formats combining elements from both Sears and Kmart—but these were rebranded as Sears Grand stores by the following year.

Beginning in 2005, Kmart remodeled locations according to the "Orange" prototype featuring interiors with orange and brown hues and lower shelving units for improved product visibility. These updated stores included appliance departments stocked with Kenmore Appliances and hardware sections offering Craftsman tools previously exclusive to Sears. Some former Kmart automotive centers were converted into Sears Auto Centers.

In July 2009, Sears Holdings debuted its first Sears-branded appliance store inside a Birmingham, Alabama Kmart—a larger store-within-a-store concept surpassing typical appliance departments at Kmart.

By October 2009, talks between Kmart and Martha Stewart Living Omnimedia collapsed following Stewart’s public remarks regarding quality declines after the merger.

In November 2009, Kmart recorded its first positive year-over-year sales growth since 2005—a modest increase of 0.5%—marking only the second such rise since 2001.

2010–2018: Kmart and Sears Holdings

Throughout the 2010s, numerous Kmart locations became increasingly outdated and fell into disrepair. On December 27, 2011, Sears Holdings revealed plans to shutter between 100 and 120 Sears and Kmart outlets. By 2014, amid Sears Holdings’ financial struggles, Kmart was closing dozens of stores, prompting concerns from suppliers and creditors regarding cash flow. To raise $1.445 billion that year, the company divested its Lands' End division, sold the majority of its stake in Sears Canada, issued bonds, and secured loans. Company representative Howard Riefs explained that these store closures were intended to cut costs and expedite business transformation.

On October 10, 2014, Kmart experienced a data breach involving customers’ credit and debit card details; however, the company later confirmed that no personal or sensitive information had been compromised.

In April 2016, Kmart declared the liquidation of 68 stores, followed by an additional 64 closures by December of the same year. Despite these reductions, CEO Eddie Lampert asserted there were no intentions to discontinue the Kmart brand, highlighting initiatives aimed at improving the shopping experience through integrated retail strategies and the Shop Your Way loyalty program. Nevertheless, further announcements disclosed ongoing store shutdowns: at least 25 in early 2017 and another 78 in January. Analysts expressed skepticism about Sears Holdings’ long-term viability.

Kmart continued to close locations throughout 2017: 18 stores in May; 49 by September; an additional 35 by October; plus another 28 in late August—including the final store in Rhode Island. In October, the Santa Rosa, California outlet was destroyed by wildfire. By November, plans were made to close another 45 Kmart stores and 18 Sears outlets, including the last remaining Kmart in Alabama.

During the holiday period of 2017, Sears and Kmart shifted their advertising strategy away from television commercials toward digital marketing after reviewing campaign results.

On January 4, 2018, Kmart announced it would liquidate another 64 stores during springtime, marking the end of the Super Kmart format with the closure of its Warren, Ohio location. MSN Money forecasted a strong possibility that Kmart would cease to exist within that year.

On March 15, Sears Holdings reported a modest profit for Q4 2017, primarily due to tax refunds; however, sales for both brands continued to decline. CEO Lampert acknowledged uncertainty about Kmart’s ability to survive as a standalone retailer and indicated a strategic pivot toward e-commerce.

In April and May of 2018, Sears revealed plans for closures and auctions involving multiple Sears and Kmart locations nationwide—including stores in Brandon, Florida; Saugus, Massachusetts; Bennington, Vermont; and Līhuʻe, Hawaii—the latter being Hawaii’s last remaining Kmart. By May 21, liquidation sales commenced at forty stores across twenty-four states; further closures were announced on May 31 (16 Kmarts and 48 Sears), with additional evaluations underway.

Between June and August 2018, Sears Holdings announced further store shutdowns following liquidation sales that began on June 28. Reports indicated ongoing nationwide liquidations of Kmart locations throughout July and August.

These widespread closures reflected continued efforts to eliminate unprofitable outlets amid escalating financial difficulties faced by Sears Holdings and its subsidiaries.

2018–2019: Second Bankruptcy Filing

On October 15, 2018, Sears Holdings initiated a Chapter 11 bankruptcy proceeding and revealed plans to shut down 142 stores, which included 63 Kmart outlets such as the final Kmart in Arkansas, as well as the last remaining stores in Georgia and Kansas. This event represented Kmart's second bankruptcy within a span of 16 years. By November 8, Sears Holdings expanded its closure plans to include an additional 40 stores, with 11 of those being Kmarts. On November 23, a list comprising 505 stores—among them 239 Kmart locations—was disclosed as candidates for sale amid bankruptcy proceedings, though liquidation remained an option. By December 28, the company announced further closures affecting 80 stores, including 37 Kmarts.

In early January 2019, Sears Holdings proposed maintaining only 202 Kmart stores alongside 223 Sears stores, primarily concentrated in densely populated coastal regions. On January 15, amidst the threat of Chapter 7 liquidation, a bankruptcy judge mandated renewed negotiations with Eddie Lampert. A last-minute agreement preserved up to approximately 400 Sears and Kmart outlets. On January 19, Sears Holdings confirmed ESL Investments as the successful bidder tasked with sustaining some store operations.

Nevertheless, on January 24, unsecured creditors such as Simon Property Group submitted motions seeking to nullify the Lampert agreement, accusing him of asset stripping that adversely affected suppliers and landlords. The Pension Benefit Guaranty Corporation also opposed the deal due to a $1.7 billion pension funding shortfall that could impose taxpayer burdens. By February 1, ESL revealed intentions to close three Kmart locations monthly contingent upon approval of its acquisition.

In February 2019, a U.S. bankruptcy judge authorized Lampert’s purchase of Sears Holdings’ most valuable assets, allowing the business to continue with roughly 425 combined Sears and Kmart stores under a new entity named Transform Holdco (Transformco), despite losses incurred by creditors.

2019–Present: Management Changes and Continued Store Closures

The transaction transferring ownership of 202 Kmart stores to Transform Holdco was completed in February 2019, while the remaining stores were liquidated to partially compensate Sears Holdings’ creditors.

In May 2019, Kmart announced the closure of its Walla Walla, Washington location after nearly four and a half decades in operation. By August of that year, TransformCo indicated that further store shutdowns might occur. In October 2019, plans emerged to close 84 Kmart outlets, followed by an additional round of closures in November; during this period, TransformCo secured $250 million in new financing and conveyed ongoing assessments of its retail footprint. Fifteen more stores ceased operations in February 2020.

On November 21, 2021, Kmart closed its final Michigan store located in Marshall—the chain’s founding state. The last West Coast store terminated operations in Grass Valley, California in December of that year. Following the March 2022 closure of the Hamilton, Montana store, just four Kmart locations remained in the United States, half situated within New Jersey. The Avenel store in New Jersey closed in April 2022, leaving three remaining outlets—in Miami; Westwood, New Jersey; and Bridgehampton, New York. The Westwood store shuttered in October 2023 after more than four decades of service, reducing mainland U.S. locations to two along with some sites in U.S. territories.

The Bridgehampton location ceased operations on October 20, 2024; having opened in 1999, it outlasted competitors due to limited Walmart and Target presence nearby. This left Miami as the only full-line Kmart remaining on the continental U.S., although by March 2023 it had been downsized to a smaller format occupying a former garden center space with a reduced product selection. The rest of the original Miami store was leased to an At Home outlet. This store initially opened on November 3, 1977.

In May 2025, it was announced that the Kmart at Sunny Isle shopping center in St. Croix would close in August due to non-renewal of its lease but actually shut down early on July 5—marking the final closure on St. Croix. Another St. Croix location had closed two years earlier after operating since June 1993. By late June 2025, reports indicated that the Saint Thomas Lockhart Gardens store would close on August 16. Consequently, only one Kmart remains open in the U.S. Virgin Islands—located at Tutu Park Mall on Saint Thomas—alongside stores still operating in Guam and Miami.

Headquarters

Kmart's former parent company, Sears Holdings Corporation, maintained its corporate headquarters on Beverly Road in Hoffman Estates, Illinois. In December 2021, Transformco revealed intentions to divest this office property early the next year. Presently, the company functions from an alternate location on Trillium Boulevard within the same municipality.

Previously, Kmart's main administrative offices were situated at 3100 W. Big Beaver Road in Troy, Michigan, part of the Metro Detroit area. This complex comprised 23 connected sections, predominantly three stories tall, and was criticized by Norm Sinclair of DBusiness for its inefficient design.

Current

• Kmart operates as a discount department store chain, typically in standalone buildings or formerly within strip malls. Its merchandise includes CDs, DVDs, electronics, bedding, hardware supplies, sporting goods, apparel, toys, jewelry, office essentials, health and beauty items, over-the-counter medications, home accents, and a limited selection of food products. Many locations once housed garden centers, tax assistance services, pharmacies, and cafés. Store sizes vary from . Prior to widespread closures, numerous outlets were rebranded as Big Kmart or transitioned into Super Kmart stores.

Former

• American Fare was a hypermarket chain active from 1989 to 1994 through a partnership with Bruno's Supermarkets. The inaugural store launched near Atlanta in 1989 featuring retail space including groceries and general merchandise. By 1990, two additional stores opened. Bruno's ended the collaboration in 1992; Kmart assumed full control but shuttered all locations by 1994. The brand name persists on select Kmart consumables.
• Big Kmart stores provided an expanded assortment of home décor, children's clothing, and food items such as meat and produce. These outlets ranged from in size and included amenities like garden centers, pharmacies, tax preparation centers, portrait studios, cafés, and occasionally gas stations. Rolled out company-wide in 1997; many were subsequently closed or reverted to standard Kmart formats. The final Big Kmart ceased operations in November 2021.
• BlueLight Internet service debuted in 1999 as a dial-up ISP promoted through advertising; it was spun off and later reacquired before being sold amid bankruptcy proceedings. By 2006 it charged $14.95 monthly and served approximately 165,000 customers.
• Borders bookstore chain was acquired in 1992; merged with Waldenbooks to create Borders-Walden Group in 1994 and divested in 1995. Borders declared bankruptcy and liquidated all stores by September 2011.
• Builders Square was a home improvement superstore chain sold to Hechinger in 1997; Hechinger ceased operations by 1999.
• Designer Depot, a discount apparel retailer operating in Metro Detroit during the 1980s, offered brand-name clothing at reduced prices.
• K-Café was an on-site restaurant serving typical fast-food fare and breakfast options; discontinued by April 2018.
• KDollar operated as a discount store chain selling Kmart merchandise at lower prices within former Kmart locations. It launched in Michigan (2013) and Illinois.
• Kmart Chef was a small fast-food chain owned by Kmart between 1967 and 1974 that specialized in hamburgers and fries; it peaked at eleven sites before closing.
• Kmart Dental represented a prototype dental clinic inside a Miami Kmart store but was never officially owned by the company.
• Kmart Express consisted of gas stations and convenience stores adjacent to some Kmarts; expansion plans were halted after bankruptcy; the last location closed in 2017.
• Kmart Food Stores operated supermarkets alongside Kmart outlets from 1962 until the early 1980s.
• Kwash was a laundromat prototype launched in 2010 attached to an Iowa City Kmart; it closed together with the store in 2017.
• Makro, Dutch warehouse clubs operated U.S. stores between 1981 and 1989; Kmart acquired full ownership in 1989 but converted or shuttered these stores by 1990.
• Office Square specialized in office supplies and furniture; merged into OfficeMax following Kmart’s acquisition in 1991.
• OfficeMax, an office supply chain purchased by Kmart in 1991 and sold off in 1995; later acquired by Office Depot in 2013.
• Pace Membership Warehouse served as Kmart’s warehouse club brand until Walmart acquired it; most locations were converted to Sam’s Club or sold by 1993.
• PayLess Drugs drugstore chain acquired by Kmart in 1985 and sold to TCH Corporation in 1994; became part of Rite Aid by 1999.
• The Sports Authority, sporting goods retailer acquired in 1990 and divested in 1995; liquidated all stores by 2016.
• Super Kmart Center superstores combined standard Kmart merchandise with full grocery departments including meat and seafood selections. Sizes ranged from . The first store opened in Medina, Ohio (1991); many closed or converted after early-2000s shutdowns. Some transitioned to the "K-Fresh" concept featuring expanded fresh food sections but lacking onsite deli or bakery services. The final Super Kmart closed in April 2018; replaced by Meijer.
• U-Pak was a no-frills supermarket adjacent to a Pontiac Kmart (1979); it shuttered within one month due to poor sales performance.
• Variety Outlet, a closeout retail chain operating from former Kmarts beginning in the mid-1990s.
• Waldenbooks, mall-based bookstore chain purchased in 1984; merged with Borders to form Borders-Walden Group (sold off in 1995); Borders went bankrupt and closed all outlets by 2011.

Philanthropy

Kmart's philanthropic efforts 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. Over a span of 30 years, Kmart emerged as the leading corporate contributor to the March of Dimes, raising a total of $114 million.

On July 29, 2008, Don Germano, serving as SVP and GM of Kmart stores, was appointed to a five-year term on the national Board of Trustees for the March of Dimes Foundation.

Through its annual Thanks and Giving campaign, Kmart for Kids aided St. Jude Children's Research Hospital, accumulating over $59.2 million by 2008. The tenth iteration of this holiday campaign in 2013 saw a record-breaking donation amounting to $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. As a national partner from that year forward, Kmart and its patrons raised nearly $1.5 million over two years via in-store fundraising efforts.

Environmental record

On May 9, 2007, Kmart faced a penalty of $102,422 due to violations involving federal regulations related to hazardous waste management, clean water standards, and emergency planning across 17 distribution centers. To rectify these issues, Kmart implemented spill-prevention protocols, secured storm-water discharge permits, adhered to hazardous waste generator requirements, and provided reports to state and local emergency response agencies. Additionally, the EPA identified deficiencies in Kmart’s handling and storage of hazardous waste, including improperly labeled oil drums at one Pennsylvania location.

Kmart also took part in promoting battery recycling programs. In 1990, the company intended to allocate approximately $80 million toward newspaper advertisements encouraging consumers to recycle used batteries for $2 each, reflecting its environmental responsibility through consumer engagement initiatives.

October 2014

In early September 2014, malware infected payment systems at several Kmart stores; this breach was publicly disclosed in October of the same year.

September 2017

Between September 26 and October 12, 2017, malicious software compromised computers managed by a service provider for sears.com and kmart.com websites. This attack exposed credit card information belonging to roughly 100,000 customers via an injected malicious script. The incident was not made public until April 2018.

June 2018 incident

In June 2018, Sears Holdings announced that cybercriminals had stolen credit card data from multiple Kmart locations by deploying a virus-like code that evaded detection by existing anti-virus software.

June 2021

From June 3 through June 15, 2021, unauthorized access occurred on Transformco servers containing sensitive employee information such as payroll and healthcare records. This breach affected both current and former employees of Kmart and other Transformco-operated businesses.

Animal welfare concerns

In 2012, Mercy for Animals revealed instances of animal cruelty at Christensen Farms—a pork supplier serving Kmart along with Walmart and Costco—documenting pigs confined in gestation crates and mistreatment of piglets. In response to these findings, Kmart pledged to require all its pork suppliers to eliminate the use of gestation crates.

Motorsports sponsorships

Kmart held a significant presence as a sponsor within NASCAR and the now-defunct CART racing series, most notably supporting Newman/Haas Racing, a team owned by actor Paul Newman and former driver Carl Haas. Their roster of CART competitors featured Nigel Mansell alongside the father and son pair Michael and Mario Andretti. Under Kmart's sponsorship, Michael Andretti and Mansell secured championship titles in 1991 and 1993, respectively. When Michael Andretti transitioned to Formula One in 1993, Kmart backed his McLaren throughout that season. The company also sponsored the NASCAR-sanctioned Kmart 400 events held at Michigan and North Carolina Speedway. The retailer celebrated its inaugural NASCAR victory in 1988 at Darlington Raceway with driver Lake Speed. Additionally, Kmart supported three-time NASCAR champion Darrell Waltrip during his concluding full-time seasons from 1999 to 2000, and later sponsored Boris Said’s #60 No Fear Ford Fusion in 2006.

Puerto Rico operations

The S. S. Kresge chain inaugurated its first Puerto Rican location on November 25, 1959, with a 17,678 sq ft store situated at the 65th Infantry shopping center in San Juan. Throughout the 1960s, more Kresge outlets opened across Bayamón, Santurce, Ponce, and Río Piedras. Beginning in June 1987, closures of several stores on the island commenced, including two in Ponce.

Kmart expanded its footprint beyond the continental United States on October 21, 1964, launching a 69,000 sq ft store at San Patricio Plaza in Guaynabo. Following a fire that destroyed this location in December 1967, it was reconstructed and reopened by January 1969. By May 1979, Kmart introduced a third store on the island in Trujillo Alto, bringing its total number of U.S. and Canadian outlets to 1,532.

In May 1983, Kmart acquired leases for five former Barker's Discount Department Stores across Puerto Rico for about $2.1 million after Barker's parent company declared bankruptcy. That October, three new Kmart locations opened in Bayamón and Arecibo, boosting employment to over 700 workers across twelve stores—six under Kmart and six as Kresge.

By April 1998, plans were underway for an investment exceeding $25 million to convert eight of the island’s twenty-one Kmart stores into Big Kmart formats while adding two new stores in Vega Alta and Plaza Las Américas. Additional Big Kmart outlets launched at Montehiedra Town Center, Los Colobos (Carolina), Plaza Guayama, Cayey, San Patricio Plaza, and Las Catalinas Mall (Caguas). The Plaza Las Américas location became Puerto Rico’s largest retail site at 144,000 sq ft.

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

Throughout the 2010s, Kmart steadily reduced its presence on the island with multiple closures: two stores ceased operations in 2015 (Señorial Plaza San Juan and Vega Baja); three more closed in December 2018 (San Patricio Plaza, Las Catalinas Mall, San Germán); five shuttered in August 2019 (Aguadilla, Trujillo Alto, Cayey, Carolina, Yauco); another five closed by November 2019 (Fajardo, Juana Díaz, Arecibo, Plaza Río Hondo, Vega Alta); one store closed in January 2020 (Plaza Centro Mall Caguas); two additional closures occurred mid-2020 (Plaza Guaynabo and Ponce); concluding with two final shutdowns in December 2020 (Rexville Town Center Bayamón and Western Plaza Mayagüez).

On October 15, 2022, the last remaining Kmart outlet on Puerto Rico at Plaza Las Américas announced its permanent closure. This event marked the complete withdrawal of Kmart from the island following months of negotiations between mall management and the retailer to secure a replacement tenant before the chain agreed to vacate.

Operations in Guam

The Kmart outlet located 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 particular store achieved $100 million in yearly revenue, ranking as the highest-grossing Kmart location and boasting the largest customer base. Its geographical isolation and restricted online purchasing options contribute to its distinctive market niche, which the Wall Street Journal has characterized as a retail "Galapagos."

Australia and New Zealand

Kmart made its Australian debut in 1969 with a store in Burwood East, Victoria, a site now transformed into the Burwood One shopping center. The Australian branch originated through a joint venture between G.J. Coles & Coy Limited (Coles) and the S.S. Kresge Company, with Kresge initially owning 51% of the venture. The first New Zealand Kmart opened its doors in Henderson, Auckland, in 1988. In 1994, Kresge divested its interest, selling its shares to Coles Myer, Coles' successor entity. After Coles Myer dissolved in 2007, ownership of the Australian and New Zealand Kmart stores transferred to Wesfarmers.

Canada

Kmart entered the Canadian market by opening its inaugural store on March 14, 1963, in Huron Heights, Ontario, followed shortly by a second location in Windsor, Ontario in May of the same year.

Between 1983 and 1984, five stores located in Greater Montreal were closed. The predecessor brand, Kresge, exited Canada entirely by 1994. Amid ongoing financial difficulties, Kmart declared plans in December 1997 to shut down ten out of its 122 Canadian outlets. Eventually, in May 1998, the Canadian division consisting of 112 stores was sold to rival Zellers, part of the Hudson's Bay Company. Post-acquisition, numerous locations were either closed or rebranded under Hudson's Bay Company banners, predominantly Zellers.

Slogans

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

Caribbean

During the early 2000s, Kmart aimed to expand into Caribbean regions where Wal-Mart and Target had no presence; however, none of these planned stores advanced beyond the construction phase before Kmart’s bankruptcy filing in 2002 led to halted payments for contractors. Construction of a Super Kmart store in Trinidad began in 2001 but was suspended at approximately 80% completion in 2002. Additional proposed locations included sites within Trinidad, Millennium Heights in Barbados, five outlets across the Dominican Republic, and potential entry into Jamaica.

Europe

In 1992, Kmart acquired a number of former communist-era department stores across Eastern Europe, including thirteen establishments within the former Czechoslovakia. Many of these stores were profitable; notably, the Bratislava location set a company sales record. Nevertheless, by March 1996, due to challenges faced within U.S. operations, Kmart divested its six Czech and seven Slovak stores to British retailer Tesco for roughly $117.5 million to concentrate efforts on core North American markets.

Mexico

During the 1990s, Kmart introduced four supercenter-format stores in suburban areas of Mexico City through a partnership with Mexican retailer Liverpool. Approximately half of each store’s space was dedicated to groceries to align with local consumer preferences. In 1997, these stores along with one unfinished site were sold to Mega—a Mexican hypermarket chain owned by Comercial Mexicana. All remaining locations continued 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 its intention to expand into the Singapore market through a joint venture with Metro (Private) Limited, a subsidiary under Metro Holdings. The inaugural Kmart store launched on May 19, 1994, situated in Marina Square and covering an area of 9,700 m². Additional outlets were subsequently established at Lucky Plaza in July 1994 and Century Square in October 1995, bringing the total number of stores to three. Nevertheless, by June 1996, Kmart opted to cease operations at all its Singapore locations, a decision that resulted in financial repercussions for Metro Holdings.

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

See also

• Kmart Australia
• Sears Holdings
• Transformco

Further reading

• Archived via Ghostarchive and preserved on the Wayback Machine: