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Kmart

The chain that invented the Blue Light Special and once ran 2,486 stores is down to three — two in US territories and one in suburban Miami

Active — Kmart is still in business, but barely. The discount chain that operated 2,486 stores worldwide at its 1994 peak is down to three locations: a store at Tutu Park Mall on St. Thomas in the US Virgin Islands, a store in Tamuning, Guam, and a smaller store in Kendale Lakes, Florida — the last on the US mainland. The last full-size Kmart in the continental United States, in Bridgehampton, New York, closed on 20 October 2024, and two US Virgin Islands stores shut in 2025, leaving Tutu Park as the territory's only Kmart. The parent company, Transformco, has said it is moving from being a retailer with real estate to being a real estate company.

Kmart's lineage starts with Sebastian S. Kresge, who put US$6,700 saved from a travelling-salesman job into a five-and-dime store in Memphis, Tennessee, in 1897, jointly owned with John G. McCrory. Kresge incorporated the S.S. Kresge Company in Delaware in 1912 with 85 stores and reincorporated in Michigan in 1916; the company listed on the New York Stock Exchange in 1918.

The first Kmart-branded store, a 27,000-square-foot "bantam" store, opened on 25 January 1962 in San Fernando, California — about six months before the first Walmart. The first full-size Kmart, at 80,000 square feet, opened on 1 March 1962 in Garden City, Michigan. Seventeen more followed that year. In 1977 the S.S. Kresge Company renamed itself K Mart Corporation.

The chain's signature was the Blue Light Special, a short in-store promotion announced over the public-address system with the phrase "Attention, Kmart shoppers". By 1994 Kmart operated 2,486 stores globally, making it one of the largest retailers in the world.

The decline ran through two bankruptcies. Kmart filed for Chapter 11 in 2002 and emerged in May 2003. On 24 March 2005 its merger with Sears, Roebuck and Co. closed, creating Sears Holdings Corporation and a combined company of roughly 3,500 stores. Sears Holdings filed for Chapter 11 on 15 October 2018, the same day a US$134 million debt payment came due.

The surviving business was bought by Eddie Lampert's ESL Investments. Transform SR Brands LLC, trading as Transformco, was formed on 11 February 2019 and acquired 425 stores — 223 Sears and 202 Kmart — for US$5.2 billion; stores it did not buy were liquidated immediately. In December 2019 Transformco sold the DieHard brand to Advance Auto Parts for US$200 million, keeping the right to sell DieHard batteries in Sears and Kmart stores. By February 2020 the Kmart count was 70, spread across 19 states plus Guam, Puerto Rico and the US Virgin Islands.

Closures continued until very little was left. In a June 2023 interview, Transformco's president for real estate, Scott Carr, described the company as "transitioning from being a retailer with real estate to becoming a real estate operating company" — which is a fair description of what has happened to roughly 50 million square feet of former store space.

Kmart closed its last full-size store in the continental United States, in Bridgehampton, New York, on 20 October 2024. The store in suburban Miami, in Kendale Lakes, had already downsized in March 2023, moving into the garden centre area of its own building while the rest of the space was leased to At Home; it remains open as a smaller format and is the last Kmart on the mainland.

The US Virgin Islands went from three Kmarts to one in a little over two years. The Sunshine Mall store on St. Croix closed in 2023, the Sunny Isle store on St. Croix closed in the first week of July 2025 after a lease non-renewal covered by a WARN notice to 96 employees, and the Lockhart Gardens store on St. Thomas closed on 16 August 2025. That left the Tutu Park Mall store on St. Thomas as the territory's last Kmart.

As of 2026, three Kmart locations remain: Tutu Park on St. Thomas, Tamuning on Guam, and Kendale Lakes, Florida. The company's position on its remaining stores is that they are vulnerable to lease decisions and redevelopment proposals rather than to any announced closure programme.

Timeline

  1. 31 Jul 1899 — The company's founding date: Kmart's corporate lineage dates its founding to 31 July 1899; Sebastian S. Kresge had opened his first five-and-dime in Memphis in 1897, and the S.S. Kresge Company was incorporated in 1912 with 85 stores. (United States)
  2. 1912 — Incorporated: The S.S. Kresge Company is incorporated in Delaware with 85 stores.
  3. 25 Jan 1962 — The first Kmart: A 27,000-square-foot "bantam" Kmart opens in San Fernando, California; the first full-size store follows on 1 March in Garden City, Michigan. (California)
  4. 1977 — Renamed: The S.S. Kresge Company becomes K Mart Corporation.
  5. 1987 — The five-and-dimes go: The remaining 76 Kresge and Jupiter stores in the United States are sold to McCrory Stores.
  6. 1994 — The peak: Kmart operates 2,486 stores worldwide, one of the largest retail footprints in the world.
  7. 2002 — First bankruptcy: Kmart files for Chapter 11 and emerges in May 2003.
  8. 24 Mar 2005 — The Sears merger: The merger with Sears, Roebuck and Co. closes, creating Sears Holdings Corporation and a combined company of about 3,500 stores. (Hoffman Estates)
  9. 15 Oct 2018 — Second bankruptcy: Sears Holdings files for Chapter 11 on the day a US$134 million debt payment is due. (New York)
  10. 11 Feb 2019 — Transformco: ESL Investments' Transform SR Brands LLC buys 425 stores, 202 of them Kmarts, for US$5.2 billion; the rest are liquidated.
  11. Dec 2019 — DieHard sold: The DieHard brand goes to Advance Auto Parts for US$200 million, with Sears and Kmart keeping selling rights.
  12. Feb 2020 — Down to 70: After further closures, 70 Kmarts remain across 19 states plus Guam, Puerto Rico and the US Virgin Islands.
  13. Mar 2023 — Miami downsizes: The Kendale Lakes store shrinks into its garden-centre area, leasing the rest to At Home. (Miami)
  14. 2023 — Transformco's stated direction: In a June interview the company's real estate president describes a shift from retailing to being a real estate operating company. (Hoffman Estates)
  15. 20 Oct 2024 — The last full-size mainland store: The Bridgehampton, New York store closes, leaving the smaller Miami store as the only Kmart on the mainland. (New York)
  16. Jul 2025 — St. Croix goes dark: The Sunny Isle store closes in the first week of July after a lease non-renewal and a WARN notice covering 96 employees. (U.S. Virgin Islands)
  17. 16 Aug 2025 — St. Thomas loses one: The Lockhart Gardens store closes, leaving Tutu Park as the last Kmart in the US Virgin Islands. (U.S. Virgin Islands)
  18. 2026 — Three stores: Tutu Park on St. Thomas, Tamuning on Guam and Kendale Lakes in Florida are the remaining Kmart locations.

Quick facts

Founded
1899 as S.S. Kresge Company, by Sebastian S. Kresge
First Kmart store
25 January 1962, San Fernando, California
First full-size Kmart
1 March 1962, Garden City, Michigan
Renamed
K Mart Corporation, 1977
Peak
2,486 stores worldwide, 1994
Signature
the Blue Light Special and "Attention, Kmart shoppers"
First bankruptcy
2002; emerged May 2003
Sears merger
closed 24 March 2005, creating Sears Holdings
Second bankruptcy
Sears Holdings filed 15 October 2018
Current parent
Transformco (Transform SR Brands LLC), formed 11 February 2019
Stores bought in 2019
425, of which 202 were Kmarts, for US$5.2 billion
DieHard
sold to Advance Auto Parts in December 2019 for US$200 million
Last full-size mainland store
Bridgehampton, New York, closed 20 October 2024
USVI closures
Sunny Isle on St. Croix in July 2025; Lockhart Gardens on St. Thomas on 16 August 2025
Stores remaining
three, as of 2026
Locations
St. Thomas (USVI), Tamuning (Guam), Kendale Lakes (Florida)
Parent's stated direction
from retailer with real estate to real estate operating company

Lineage — where the name went

A five-and-dime company, the discount chain it created, the merger that swallowed it, and the private holding company that now owns three surviving stores.

  1. 1899 — Sebastian S. Kresge founded S.S. Kresge Company (the five-and-dime company that became Kmart's parent)
  2. 1962 — S.S. Kresge Company created Kmart (the first Kmart-branded store, in San Fernando, California)
  3. Kmart created Blue Light Special (the in-store promotion that became the chain's signature)
  4. 2005 — Kmart merged into Sears Holdings Corporation (the merger with Sears, announced in 2004 and closed in March 2005)
  5. 2005 — Sears, Roebuck and Co. merged into Sears Holdings Corporation (the other half of the deal)
  6. 2002 — The 2002 bankruptcy defeated Kmart (the first Chapter 11 filing)
  7. 2018 — The 2018 bankruptcy defeated Sears Holdings Corporation (the filing that ended the old company)
  8. 2019 — Transformco acquired Kmart (bought 425 surviving stores, 202 of them Kmarts)
  9. 2019 — Eddie Lampert founded Transformco (through ESL Investments)
  10. 2019 — Transformco sold DieHard (US$200 million to Advance Auto Parts)

Entities in this tree: Kmart (company, 1962); S.S. Kresge Company (company, 1899); Sebastian S. Kresge (person, 1897); Sears, Roebuck and Co. (company); Sears Holdings Corporation (company); Transformco (company); Eddie Lampert (person); Blue Light Special (brand); DieHard (brand); The 2002 bankruptcy (event, 2002); The 2018 bankruptcy (event, 2018)

Sources

  1. Kmart — Wikipedia (2026-09-20)
  2. Transformco — Wikipedia (2026-09-20)
  3. With Sunny Isle Closed and Lockhart Gardens Set to Follow, Tutu Park Stands as Kmart's Final Holdout in USVI — The Virgin Islands Consortium (2026-09-20)
  4. Kmart Shuttering Lockhart Gardens Store Aug. 16 — St. Thomas Source (2026-09-20)
  5. Attention Kmart shoppers: The last full-size Kmart in the mainland United States is closing — CNN Business (2026-09-20)
  6. Kmart's blue light fades to black with the shuttering of its last full-scale US store — AP News (2026-09-20)
  7. Kendall Kmart soon to be last store in mainland United States — WPLG Local 10 (2026-09-20)
  8. Miami Kmart is Now the Last Store in U.S. Mainland. Behold! — Miami New Times (2026-09-20)

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