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Kmart

Logo used since 1990
Company type	Subsidiary
Industry	Retail
Predecessor	S. S. Kresge Corporation
Founded	1899 (1899)
Founder	Sebastian Spering Kresge
Fate	Assets acquired by Transformco (2019)
Headquarters	United States , United States
Area served	United States and its territories
Products	Apparel, home appliances, electronics, kitchenware, groceries
Owner	Transformco
Parent	Transformco
Website	www.kmart.com

Kmart ( ), previously known as Kmart Corporation, is a department store chain and online 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 2,486 locations globally at its peak in 1994. Its large-format stores featured a diverse selection of merchandise, including apparel, home appliances, electronics, kitchenware, and groceries.

The company's downturn started during the 1990s and led to filing for Chapter 11 bankruptcy protection in 2002. Afterward, in 2005, Kmart combined with Sears to create Sears Holdings Corporation. The process of closing stores persisted until Sears Holdings itself declared bankruptcy in 2018. In 2019, Kmart became part of Transformco, which purchased the assets of Sears Holdings. Subsequent closures resulted in the final full-scale big-box Kmart store on the mainland United States closing in 2024.

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

Early years

S. S. Kresge, who founded the enterprise that evolved into Kmart, encountered variety-store innovator Frank Winfield Woolworth while supplying goods to Woolworth's chain of 19 stores. In 1897, Kresge invested $6,700—accumulated from his work as a traveling salesman—into a five-and-dime store located in Memphis, Tennessee, co-owned alongside one of his former clients, John G. McCrory. The following year saw the opening of a second outlet in Detroit, marking the debut of the initial S.S. Kresge stores. After two years of operation, Kresge exchanged his Memphis stake plus $3,000 to assume full control over the Detroit location and established the Kresge & Wilson Company with his brother-in-law Charles J. Wilson.

In 1912, Kresge officially incorporated the S.S. Kresge Company in Delaware, overseeing 85 stores. Four years later, he formed a new S.S. Kresge Company based in Michigan to manage operations directly and lay the groundwork for what would become modern-day Kmart. The company was publicly traded on the New York Stock Exchange beginning May 23, 1918. During World War I, store price ceilings were raised to $1. By 1924, Kresge's personal wealth was estimated at approximately $375 million with real estate holdings around $100 million. The number of stores expanded rapidly from 257 in 1924 to 597 by 1929. Although Kresge stepped down as president in 1925, he continued serving as chairman. The Great Depression reduced earnings and forced some closures; nonetheless, store numbers increased to 682 by 1940. The postwar era brought significant changes as suburban growth altered consumer shopping habits.

1960s–1970s

Under the leadership of executive Harry Cunningham, the S.S. Kresge Company inaugurated its first Kmart outlet, a compact bantam format, on January 25, 1962, in San Fernando, California. Initially intended to be a Kresge store, this opening preceded the launch of the first Walmart by six months. The first full-scale Kmart store, featuring , debuted on March 1, 1962, in Garden City, Michigan. Cunningham and Sam Walton drew their concept inspiration from a visit to Ann & Hope in 1961. That year saw the addition of seventeen more Kmart locations. The decade also witnessed the introduction of Kmart Foods, a supermarket chain that has since been discontinued. Despite broadening the Kmart brand portfolio, the company continued to operate under the official name S.S. Kresge Company.

The company's founder, Sebastian Spering Kresge, passed away on October 18, 1966, at the age of 99.

Concurrently with the opening of the initial Kmart store, underperforming S.S. Kresge outlets were transformed into Jupiter Discount Stores, a minimalist deep discount format. Throughout the 1970s, Kmart pursued an aggressive expansion strategy that led to the exit of numerous competitors from the market. Its primary rivals during this period included Zayre, Ames, Bradlees, Caldor, Hills, and MMG-McCrory Stores-operated chains such as McCrory and G.C. Murphy Co. In 1977, S.S. Kresge Company officially rebranded itself as K Mart Corporation.

1980s: Last Kresge stores

Bernard M. Fauber assumed the roles of chairman and CEO of Kmart in 1980. By April 1981, the company had opened its 2,000th store in Kearny, New Jersey, which remained operational until its closure in May 2021. By year-end 1981, Kmart operated 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.; however, Canadian locations under these brands persisted until 1994.

In an effort to innovate retail experiences, Kmart experimented with co-branding in 1985 by converting an in-store cafeteria located in Canton, Michigan into a Wendy's. Additionally, it collaborated with Bruno’s Supermarket to establish the hypermarket brand known as American Fare.

Until November 1990—when Walmart overtook it—Kmart held the position of second-largest retailer in the United States after Sears. During the late 1980s and early 1990s, corporate priorities shifted away from core Kmart stores toward subsidiaries or acquisitions 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 accompanied by the phrase "attention Kmart shoppers," which became widely recognized in popular culture. Launched in 1965 to accelerate sales of slower-moving inventory, it was discontinued in 1991 but saw intermittent revivals during the early 2000s—in particular in 2001, 2005, 2009—and once more in 2015.

1990–2001: New image

In 1990, Kmart introduced a refreshed logo featuring a red block "K" with "mart" scripted inside it, replacing its previous italicized design. This rebranding was followed by extensive store renovations. That same year marked the opening of Little Caesars Pizza’s first location within a Kmart store—a nod to both companies’ Michigan roots. In 1995, for a brief period, Kmart adopted the branding Today's Kmart.

The Super Kmart Center concept launched on July 25, 1991, in Medina Township, Ohio; these centers combined full-service grocery departments with general merchandise offerings. Although initially expanding nationwide, many Super Kmarts either downsized or closed due to weak sales by 2012; the final Super Kmart closed its doors in Howland Township, Ohio, in April 2018.

In 1991, the corporation officially renamed itself Kmart Corporation. The following year it expanded into Eastern Europe by acquiring thirteen stores located in former Czechoslovakia but divested these assets by 1996.

Kmart broadened its portfolio of exclusive merchandise lines featuring personalities such as Martha Stewart, Kathy Ireland, Jaclyn Smith, Lauren Hutton, and Thalía. Licensed products from well-known franchises like Sesame Street and Disney were also prominent. Prominent spokespersons for the company included Rosie O'Donnell and Penny Marshall.

In September 1995, Kmart sold its unprofitable auto repair centers to Penske Corporation for $112 million; these centers ultimately ceased operations in 2002 following disputes.

The Big Kmart format was introduced on April 23, 1997; it emphasized home furnishings, children’s clothing lines, and consumable goods. By the early 2000s most stores had been remodeled into this format. This initiative initially drove sales increases ranging from ten to fifteen percent. By 1998 Big Kmarts represented approximately sixty-two percent of all stores; that year also saw Kmart acquire and convert forty-five former Venture locations. At its zenith around the year 2000 there were roughly 1,900 Big Kmarts compared to about one hundred each of Super Kmarts and traditional Kmarts.

Kmart acquired The Sports Authority in 1990 but divested it five years later. The company’s peak sales and profitability occurred in 1992 but subsequently declined due to intensifying competition from Walmart, Target, and online retailers. To address financial losses, Kmart shuttered one hundred ten stores during 1994. Unlike its rivals, Kmart underinvested in supply chain technology while maintaining elevated dividend payouts that constrained reinvestment efforts. Analysts also pointed to inconsistent branding strategies as contributing factors.

In 1997, Kmart introduced the Kmart Cash Card as a replacement for paper gift certificates. In July of 1999 it partnered with SuperValu and Fleming to distribute $3.9 billion worth of grocery products across its retail locations.

In the year 2000, Kmart launched a co-branded MasterCard with Capital One that replaced private label credit cards. The Martha Stewart Everyday Garden Collection was expanded to include live plants and seeds; housewares were also added under the Martha Stewart Everyday Kitchen brand.

That July saw Kmart close seventy-two underperforming outlets while simultaneously opening new Big Kmarts and converting some into Super Kmart Centers. The company announced significant restructuring efforts focused on upgrading checkout systems and inventory management technologies.

1990–2001: Brand Revitalization

In 1990, Kmart revamped its branding by introducing a new logo that replaced the italicized "K" and turquoise "mart" with a bold red "K" featuring "mart" in cursive script. This emblem was accompanied by store renovations and remained in use until a redesign in 2004. That same year, Kmart partnered with Little Caesars Pizza to open the pizza chain’s first in-store location at a Kmart in Rochester, Michigan, capitalizing on their shared Michigan heritage. In 1995, the company briefly adopted the name Today's Kmart as part of an effort to modernize its market image.

In 2001, Kmart broadened its Super Kmart Center concept by incorporating grocery sections, aiming to expand this format. However, following its bankruptcy filing in January 2002, plans for new store launches were suspended, and construction on nearly finished locations was halted. Additionally, that year saw Kmart enter a $4.5 billion exclusive distribution agreement with Fleming for food and consumable goods.

Legal issues also arose in 2001: Sega filed a lawsuit over $2.2 million in unpaid invoices related to Dreamcast consoles, while Target initiated legal action against Kmart for alleged deceptive advertising practices within the "Dare to Compare" campaign, accusing Kmart of presenting inaccurate price comparisons to Target stores.

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, known for expanding CVS Corporation, assumed control with a $5 million loan. Both executives were later charged with shareholder deception and improper use of company resources. Conaway admitted full responsibility, resigned his position, and repaid loans as part of the company’s restructuring efforts.

Kmart shuttered over 300 stores nationwide—including all locations in Alaska—and laid off approximately 34,000 employees. The retailer introduced five prototype stores featuring a lime green logo and redesigned interiors in Michigan and Illinois; however, financial constraints prevented a wider rollout. This lime green prototype was eventually replaced by the "Orange" design concept launched in 2006.

During bankruptcy proceedings, hedge fund ESL Investments, led by Edward Lampert, acquired a large portion of Kmart’s debt and expedited the restructuring process. On October 17, 2002, Kmart opened its final new store in Somers Point, New Jersey—a location that remained operational until December 2019.

On January 13, 2003, Kmart closed an additional 326 stores due to underperformance. The company exited bankruptcy on May 7, 2003, and resumed trading on NASDAQ under the ticker KMRT on June 10. Lampert became chairman with ESL Investments holding a controlling 53% stake after investing less than $1 billion. His strategy emphasized profitability through inventory reduction and cost control; by late 2003, Kmart reported its first profitable quarter in three years.

On July 23, 2004, Kmart introduced a refreshed logo featuring an enlarged red "K" with "kmart" positioned underneath. In August of that year, it launched an exclusive clothing line called Attention in collaboration with E! Entertainment Television, building upon previous partnerships with the WB Network.

November 2004 saw the debut of the Kmart Rewards credit card program managed by HSBC Bank. On November 17, Kmart announced an $11 billion acquisition of Sears, creating Sears Holdings Corporation to oversee both retail brands. The corporate headquarters relocated to Hoffman Estates, Illinois; the former Troy, Michigan facility was sold off in 2012.

In 2005, Sears Holdings introduced Sears Essentials stores that combined elements of both Kmart and Sears; these outlets were rebranded as Sears Grand stores starting in 2006. Meanwhile, Kmart began remodeling stores according to the "Orange" prototype—featuring interiors painted orange and brown with lowered shelving to enhance product visibility. These renovated locations included appliance departments showcasing Kenmore Appliances and hardware sections offering Craftsman tools formerly exclusive to Sears. Some vacant automotive centers were converted into Sears Auto Centers.

In July 2009, Sears Holdings launched its inaugural Sears-branded appliance store within a Birmingham, Alabama Kmart location—a store-within-a-store concept.

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

As of November 2009, Kmart reported its first positive year-over-year sales growth (0.5%) since 2005 and only its second such increase since 2001.

2010–2018: Kmart and Sears Holdings

Throughout the 2010s, numerous Kmart outlets were perceived as aging and in decline.

On December 27, 2011, Sears Holdings revealed intentions to shutter between 100 and 120 Sears and Kmart stores. By 2014, amid financial difficulties faced by Sears Holdings, Kmart was closing several locations, which raised concerns among suppliers and creditors regarding the company's cash flow. To address these challenges, the company undertook several actions such as spinning off Lands' End, divesting most of its shares in Sears Canada, issuing bonds, and securing loans that collectively generated $1.445 billion in liquidity. According to company representative Howard Riefs, the store closures were designed to lower costs and expedite the transformation of the business model.

In October 2014, Kmart suffered a security breach involving customers' credit and debit card information; however, no evidence indicated that personal data had been compromised.

By April 2016, Kmart announced plans to liquidate 68 stores, followed by an additional 64 closures across 28 states announced in September. Despite these reductions, CEO Eddie Lampert maintained that there were no intentions to discontinue the Kmart format. Instead, he emphasized efforts to improve the customer shopping experience through integrated retail strategies and the Shop Your Way loyalty initiative. Nevertheless, from late 2016 into 2017, further closures ensued, including at least 78 stores slated for shutdown as of January 2017. Industry analysts cautioned that Sears Holdings was approaching a critical point of collapse.

Throughout 2017, Kmart consistently disclosed additional store shutdowns: 18 closures in May; another 49 by September; an extra 35 by October; and 28 more in late August—including the final location in Rhode Island. In October, the Santa Rosa Kmart was destroyed by wildfire. By November, plans included closing another 45 Kmarts along with 18 Sears stores, which encompassed the last store in Alabama.

During the holiday season of 2017, Sears and Kmart opted not to run television advertisements, choosing instead to concentrate on digital marketing efforts.

On January 4, 2018, Kmart declared it would liquidate an additional 64 stores, including its last Super Kmart situated in Warren, Ohio. Financial analysts at MSN Money projected a strong likelihood that both Kmart and Sears would cease operations within that year.

In March 2018, Sears Holdings reported a modest profit for the fourth quarter of 2017 primarily due to tax refunds; however, sales continued to decline for both brands. CEO Lampert acknowledged widespread doubts regarding Kmart’s sustainability as a standalone retailer and indicated a strategic pivot toward e-commerce channels.

In April and May of 2018, Sears announced intentions to close and auction numerous Sears and Kmart stores nationwide, which included shutting down the last remaining Kmarts in Vermont and Hawaii. By mid-2018, liquidation sales expanded across many locations with further closures scheduled through November.

These persistent store shutdowns reflected Sears Holdings’ approach to shedding unprofitable assets amid ongoing financial struggles while attempting to transition toward digital retail platforms.

2018–2019: Second bankruptcy

On October 15, 2018, Sears Holdings filed for Chapter 11 bankruptcy protection and announced plans to close 142 stores—among them were 63 Kmarts including the final locations in Arkansas (Russellville), Georgia (Covington and Peachtree City), and Kansas (Kansas City and Salina). This filing marked Kmart’s second bankruptcy within a span of sixteen years. By November 8, an additional closure of 40 stores was planned, with 11 being Kmarts. On November 23, Sears published a list comprising 505 stores proposed for sale during bankruptcy proceedings; this list included 239 Kmarts but did not guarantee protection from subsequent liquidation. On December 28, Sears announced it would close another batch of 80 stores including 37 Kmarts.

In early January 2019, Sears Holdings proposed retaining approximately 202 Kmart locations alongside 223 Sears stores with a focus on densely populated coastal regions. On January 15, amid threats of Chapter 7 liquidation, a bankruptcy judge mandated negotiations with Eddie Lampert aimed at averting full liquidation. A last-minute agreement preserved up to around 400 Sears and Kmart outlets. By January 19, ESL Investments was confirmed as the successful bidder in the bankruptcy auction allowing some stores to remain operational.

On January 24, unsecured creditors such as Simon Property Group challenged Lampert’s deal citing allegations of "serial asset stripping" at the expense of suppliers and landlords; they requested liquidation to maximize creditor recovery. On January 28, the Pension Benefit Guaranty Corporation opposed Lampert’s agreement due to a $1.7 billion pension funding shortfall that could potentially burden taxpayers. By February 1, ESL outlined intentions to close three Kmart stores monthly throughout 2019 if their bid was approved.

In February 2019, a U.S. bankruptcy judge authorized Lampert’s acquisition of Sears Holdings’ most profitable assets. The restructured company operated under Transform Holdco (Transformco), managing roughly 425 Sears and Kmart locations but at considerable cost to suppliers and creditors alike.

2019–present: Management Changes and Additional Store Shutdowns

In February 2019, Transform Holdco finalized the acquisition of 202 Kmart outlets, while the remaining stores were liquidated to partially satisfy Sears Holdings’ creditor obligations.

By May 2019, Kmart declared the shutdown of its Walla Walla, Washington location after nearly 45 years in operation. Come August, TransformCo hinted at the possibility of more store closures. In October 2019, plans were announced to close 84 Kmart stores, followed by an additional 96 closures in November, coinciding with TransformCo securing approximately $250 million in fresh funding. Another 15 stores ceased operations in February 2020.

On November 21, 2021, the last Kmart store in Michigan—its state of origin—closed in Marshall. The final West Coast outlet, situated in Grass Valley, California, shut down in December 2021. After the Hamilton, Montana store closed in March 2022, only four Kmart locations remained across the United States, half of which were situated in New Jersey. The Avenel, New Jersey store shut its doors in April 2022; three others continued serving customers in Miami, Florida; Westwood, New Jersey; and Bridgehampton, New York. The Westwood location ended its service in October 2023 after more than four decades.

The Bridgehampton store closed on October 20, 2024; having opened in 1999 as a replacement for a former Caldor outlet, it endured largely due to limited competition from Walmart and Target nearby. This closure left Miami as the only full-format Kmart within the continental U.S., alongside four additional stores located in U.S. territories. In March 2023, the Miami store was downsized to a footprint similar to that of a CVS or Walgreens pharmacy. Operating from its previous garden center area, it now offers a reduced selection of clothing, appliances, and household items; the rest of the space is leased to At Home. This location originally opened on November 3, 1977.

In May 2025, it was announced that the Kmart at Sunny Isle shopping center in St. Croix would close by August due to lease non-renewal but actually ceased operations early on July 5—marking the final closure on St. Croix. Another St. Croix store had closed two years prior after being open since June 30, 1993. By late June 2025, the Lockhart Gardens site on Saint Thomas was also scheduled to shut down by August 16. Consequently, only one Virgin Islands store remains at Tutu Park Mall (Saint Thomas), along with locations in Guam and Miami continuing nationwide.

Corporate Headquarters

Sears Holdings Corporation—the former owner of Kmart—maintained its headquarters on Beverly Road in Hoffman Estates, Illinois. In December 2021, Transformco revealed intentions to sell this corporate office early the following year. As of August 2025, the company operates from a different facility within Hoffman Estates located on Trillium Boulevard.

Kmart’s previous headquarters were based at 3100 W. Big Beaver Road in Troy, Michigan, part of the Metro Detroit area. This complex consisted of 23 interconnected sections, predominantly three stories tall with one single-story segment. Norm Sinclair from DBusiness characterized this design as "a study in inefficiency."

Present Operations

• Kmart functions as a discount department store chain frequently found as standalone buildings or formerly within strip malls. Its product range includes CDs, DVDs, electronics, bedding, hardware supplies, sporting equipment, apparel, toys, jewelry, office essentials, health and beauty items, over-the-counter medicines, home décor products, and a limited selection of groceries. Historically many locations featured garden centers, tax preparation services, pharmacies, and cafes. Store sizes varied widely prior to widespread closures; numerous outlets were rebranded as Big Kmart or transformed into Super Kmart formats.

Former

• American Fare was a hypermarket chain that operated between 1989 and 1994 as a joint venture, with Kmart holding 51% ownership and Bruno's Supermarkets owning 49%. These stores offered a variety of products including groceries, general merchandise, apparel, and amenities such as food courts and pharmacies. After Bruno's withdrew from the partnership in 1992, Kmart assumed full control but shuttered all locations by 1994. The American Fare name still appears on select consumable products under the Kmart store brand.
• Big Kmart was a discount department store format focused on home furnishings, children's apparel, and an expanded grocery selection that included meats and bakery goods. Store sizes varied from , often featuring garden centers, pharmacies, tax preparation services, portrait studios, cafes, and occasionally fuel stations. Rolled out company-wide in 1997, many Big Kmart stores were subsequently closed or reverted to standard Kmart outlets. The final Big Kmart location ceased operations in Marshall, Michigan in November 2021.
• BlueLight Internet service debuted in 1999 as Kmart’s dial-up internet provider supported by advertising. By 2001, free access was restricted; the service was reacquired by Kmart before being sold to United Online in 2002 following bankruptcy proceedings. BlueLight discontinued advertisements in 2006 while maintaining approximately 165,000 subscribers at that time.
• Borders, a bookstore chain acquired by Kmart in 1992, merged with Waldenbooks in 1994 to form the Borders-Walden Group; this entity was sold in 1995. Borders filed for bankruptcy in 2011 and subsequently liquidated all its stores.
• Builders Square, a home improvement superstore chain, was sold to Hechinger in 1997; Hechinger itself ceased operations in 1999.
• Designer Depot operated as a discount apparel retailer during the 1980s within the Metro Detroit area, offering brand-name clothing at reduced prices.
• K-Café provided fast-food style dining within stores featuring typical menu items including breakfast; it was discontinued by April 2018.
• KDollar was a discount retail chain selling Kmart merchandise at lowered prices from former Kmart locations. The initial store opened in Bloomfield Hills, Michigan in 2013; a second followed in Waukegan, Illinois.
• Kmart Chef fast-food outlets operated from 1967 until 1974 offering limited menus of items such as hamburgers and fries; the concept reached a peak of 11 locations.
• Kmart Dental was an experimental prototype dental office situated inside a Miami store; it was never directly owned by Kmart.
• Kmart Express gas station and convenience store locations were established near some Kmarts primarily across the Midwest; expansion plans were halted following bankruptcy, with the last site closing in Ionia, Michigan in 2017.
• Kmart Food Stores were supermarket formats paired alongside Kmarts from the early 1960s until their phase-out in the early 1980s.
• Kwash was a laundromat prototype launched inside a former auto service bay at an Iowa City location in 2010; it closed alongside the store in 2017.
• Makro, a Dutch warehouse club brand operating U.S. outlets from 1981 to 1989, became fully owned by Kmart by 1989 before stores were either converted or closed by 1990.
• Office Square office supply stores originated as spin-offs from Builders Square and merged into OfficeMax following Kmart’s acquisition of Builders Square in 1991; OfficeMax was later sold in 1995 and acquired by Office Depot in 2013.
• Pace Membership Warehouse served as Kmart’s warehouse club brand until Walmart acquired it and converted most locations into Sam’s Club or sold others.
• PayLess Drugs, a drugstore chain purchased by Kmart in 1985, was sold to TCH Corporation in 1994; it ultimately became part of Rite Aid by 1999.
• The Sports Authority, sporting goods retailers acquired by Kmart in 1990 and divested in 1995, ceased operations entirely by 2016.
• Super Kmart Center superstores combined traditional Kmart merchandise with comprehensive grocery departments including fresh food offerings. These stores ranged from and featured amenities such as garden centers, video rental outlets, banks, arcades, portrait studios, tax service centers, pharmacies, delis or pizza counters. Over time many services were eliminated. Most Super Kmart locations closed during early-2000s restructuring efforts; some were converted back to standard Kmarts with enhanced fresh food sections under the "K-Fresh" branding beginning around 2015 but without on-site food preparation. The final Super Kmart closed on April 8, 2018; replaced by Meijer.
• U-Pak was a brief no-frills supermarket adjacent to a Pontiac Kmart that opened briefly in 1979 but closed due to poor sales performance.
• Variety Outlet closeout stores typically operated out of former Kmart buildings starting with the first location opening in Rome, Georgia in 1994.
• Waldenbooks, mostly mall-based bookstores acquired by Kmart in 1984, merged with Borders forming the Borders-Walden Group which was sold off by Kmart in 1995; Borders subsequently declared bankruptcy and shuttered all stores by 2011.

Philanthropy

Kmart for Kids served as the primary platform for Kmart's charitable efforts, backing organizations including the March of Dimes, St. Jude Children's Research Hospital, and the American Diabetes Association. Over a span of three decades, Kmart was recognized 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 to a five-year term on the Board of Trustees for the March of Dimes Foundation.

The annual Thanks and Giving campaign represented Kmart’s partnership with St. Jude Children’s Research Hospital beginning in 2006, through which more than $59.2 million had been raised by 2008. During the 2013 holiday season alone, this initiative achieved a record-breaking fundraising total of $21.9 million.

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. That same year, Kmart became a national sponsor, and over two years, customers and employees collectively raised close to $1.5 million through in-store fundraising activities.

Environmental record

On May 9, 2007, Kmart was penalized with a fine amounting to $102,422 due to breaches of federal regulations concerning hazardous waste management, clean water standards, and emergency planning across 17 distribution centers. In response, Kmart implemented spill-prevention strategies, secured storm-water permits, adhered to hazardous waste generator regulations, and improved reporting protocols with state and local emergency planning agencies. The EPA also identified deficiencies related to hazardous waste storage and disposal practices at a facility in Falls, Pennsylvania, including improperly labeled oil drums.

Kmart actively promoted battery recycling programs. In 1990, the company allocated approximately $80 million towards full-page newspaper advertisements encouraging customers to recycle used batteries for a fee of $2 each, demonstrating its dedication to environmental stewardship.

October 2014

In early September 2014, malware was detected on payment terminals at several Kmart stores. The company disclosed this security breach publicly in October of that year.

September 2017

Between September 26 and October 12, 2017, malicious software infiltrated computers belonging to a vendor supporting the ecommerce platforms sears.com and kmart.com. This breach exposed credit card information belonging to approximately 100,000 customers through a harmful script. The incident was not made public until April 2018.

June 2018 incident

In June 2018, Sears Holdings revealed that hackers had extracted credit card data from multiple Kmart locations by installing a "viruslike computer code" that evaded detection by existing antivirus solutions.

June 2021

From June 3 through June 15, 2021, unauthorized access occurred on Transformco servers containing payroll and healthcare data for both current and former employees of Kmart as well as other Transformco brands.

Animal welfare concerns

In 2012, an investigation by Mercy for Animals into Christensen Farms— a pork supplier for Kmart, Walmart, and Costco—exposed the use of gestation crates confining pigs and documented mistreatment of piglets. Following this exposure, Kmart pledged to eliminate gestation crates from its pork supply chain.

Racing sponsorships

Kmart played a prominent role as a sponsor in NASCAR and the now-defunct CART circuit, with notable support for Newman/Haas Racing, owned by actor Paul Newman and former driver Carl Haas. Among the CART competitors they backed were champions such as Nigel Mansell and the Andretti family members, Michael and Mario Andretti. Under Kmart’s sponsorship, Michael Andretti and Mansell secured championships in 1991 and 1993 respectively. When Michael Andretti transitioned to Formula One in 1993, Kmart sponsored his McLaren vehicle throughout that season. Additionally, Kmart was the title sponsor of the NASCAR-sanctioned Kmart 400 races held at Michigan and North Carolina Speedway. In 1988, Lake Speed achieved Kmart’s inaugural NASCAR victory at Darlington Raceway. The retailer also backed three-time champion Darrell Waltrip during his final full seasons in 1999 and 2000. More recently, in 2006, Kmart sponsored Boris Said’s #60 No Fear Ford Fusion.

Operations in Puerto Rico

The S. S. Kresge chain launched its first Puerto Rican location on November 25, 1959, occupying a 17,678-square-foot space within the 65th Infantry shopping center in San Juan. Throughout the 1960s, additional Kresge stores opened across the island in areas including Bayamón, Santurce, Ponce, and Río Piedras. By mid-1987, closures of Kresge outlets began taking place in Puerto Rico.

Kmart entered the Puerto Rican market on October 21, 1964, inaugurating a 69,000-square-foot store at San Patricio Plaza in Guaynabo. After a fire destroyed this store in 1967, it was reconstructed and reopened early in 1969. The chain further expanded with a third store opening in Trujillo Alto in 1979, bringing its total to 1,532 stores across the United States and Canada.

In 1983, Kmart acquired leases for five former Barker's Discount Department Stores on the island for around $2.1 million, reopening three new outlets later that year located in Bayamón and Arecibo. This acquisition increased Kmart’s presence to twelve stores on Puerto Rico with a workforce exceeding 700 employees.

By April 1998, Kmart announced plans to invest $25 million to convert eight of its twenty-one Puerto Rican stores into Big Kmart formats while also opening two new locations at Vega Alta and Plaza Las Américas—the latter becoming the island’s largest retail space at 144,000 square feet.

Between 2002 and 2003, three stores closed due to financial difficulties related to bankruptcy. In 2011, Kmart launched a smaller "Kmart Express" format at Plaza Carolina mall; however, this concept was short-lived.

Throughout the following decade and beyond, Kmart gradually reduced its footprint on the island through multiple closures: two stores shut down in 2015; three more closed in December 2018; followed by five closures each in August and November of 2019; with additional shutdowns occurring early in 2020. By December of that year, further locations including those in Bayamón and Mayagüez ceased operations.

On October 15, 2022, the final remaining Kmart store at Plaza las Américas announced its permanent closure, marking the end of Kmart’s presence in Puerto Rico. Prior to this closure, mall management had been negotiating for several months to secure a new tenant to replace Kmart.

Operation in Guam

The Kmart store situated in Tamuning, Guam opened its doors in May 1995 and encompasses 170,000 square feet. Serving both local American residents and tourists from Asia, it stood out as a significant retail destination. As of 2018, this location generated annual sales of $100 million—the highest revenue among all Kmart stores—and boasted the largest customer base within the chain. Its remote geographic position combined with limited online shopping alternatives has created a distinctive market environment often compared to a "retail version of the Galapagos."

Australia and New Zealand

The initial Kmart in Australia debuted in 1969 at Burwood East, Victoria, a site that was later transformed into the Burwood One shopping complex. The establishment of Kmart Australia resulted from a partnership between G.J. Coles & Coy Limited (Coles) and the S.S. Kresge Company (Kresge), with Kresge owning 51% and Coles holding 49%. The first New Zealand outlet opened in Henderson, Auckland, in 1988. In 1994, Kresge withdrew from the alliance, transferring its shares to Coles Myer, Coles' successor entity. Following the division of Coles Myer in 2007, ownership of Kmart operations in both Australia and New Zealand passed to Wesfarmers.

Canada

Kmart inaugurated its first Canadian location on March 14, 1963, in Huron Heights, Ontario, followed shortly by a second store in Windsor, Ontario on May 9, 1963.

Between 1983 and 1984, five outlets situated in Greater Montreal were shuttered. By 1994, Kresge had completely exited the Canadian market. In December 1997, Kmart revealed plans to close ten of its then-122 Canadian stores. Facing persistent financial difficulties, the company sold its Canadian division—comprising 112 stores—to rival Zellers, part of the Hudson's Bay Company, in May 1998. These locations were subsequently either closed or rebranded primarily as Zellers stores.

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, none of these planned outlets progressed beyond the construction stage. By the time of its bankruptcy filing in 2002, Kmart had stopped payments to contractors. Construction on a Super Kmart store in Trinidad commenced in 2001 but was suspended at approximately 80% completion in 2002. Additional intended sites included further locations in Trinidad, Millennium Heights in Barbados, five stores across the Dominican Republic, and potential entry into Jamaica.

Europe

In 1992, Kmart acquired multiple former communist-era department stores throughout Eastern Europe, including thirteen locations within the former Czechoslovakia. Several of these outlets were profitable; notably, the Bratislava store achieved a company sales record. Nonetheless, by March 1996, amid operational challenges in the United States, Kmart divested six Czech and seven Slovak stores to British retailer Tesco for roughly $117.5 million to concentrate on North American markets.

Mexico

Throughout the 1990s, Kmart entered the Mexican market via a collaboration with retailer Liverpool, launching four supercenters in suburban areas of Mexico City. Approximately half of each store's floor space was allocated to groceries to suit local consumer preferences. These establishments—as well as an unfinished location—were sold in 1997 to Mega, a Mexican hypermarket chain under Comercial Mexicana. Except for the Tlalnepantla store—which was demolished in 2004 to make way for a Costco—all remain operational under Mega's branding.

Singapore

In August 1993, Kmart announced plans to penetrate the Singaporean market through a joint venture with Metro Holdings’ subsidiary Metro (Private) Limited, marketing the stores as K-Mart Metro. The inaugural outlet opened on May 19, 1994, occupying a 9,700-square-metre space within Marina Square. Two additional locations followed: one at Lucky Plaza in July 1994 and another at Century Square in October 1995. By June 1996, Kmart opted to withdraw from Singapore entirely, closing all three stores and resulting in a $17 million loss for Metro.

Management

• S. S. Kresge, Founder (served as president from 1899 to 1925; CEO from 1925 until 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 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, 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 from June 1995 through 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 to January 2003)
• Julian Day (president and COO starting March 2002; held the titles of president, COO, and CEO from January 2003 to September 2004)
• Aylwin Lewis (president and CEO between October 2004 and December 2007)
• W. Bruce Johnson (January 2008 – February 2011)
• Herman Darling (March 2011 – December 2012)
• Eddie S. Lampert (January 2013 – October 2018; remained on the board following bankruptcy filing)

See also

• Kmart Australia
• Sears Holdings
• Transformco

Further reading

• Archived at Ghostarchive and the Wayback Machine: