Kmart facts for kids
 |
|
| Subsidiary | |
| Industry | Retail |
| Founded |
|
| Founder | S. S. Kresge |
| Headquarters |
|
|
Number of locations
|
6 (2 in the mainland of the United States of America) |
|
Areas served
|
Kmart.com: The 50 United States +APO/FPO.
Physical stores: US Virgin Islands, Guam, The Hamptons, Miami area |
| Products |
|
| Revenue | US$25.146 billion (2015 SHC) |
| Parent | Transformco |
Kmart (pronounced KAY-mart) is a famous department store chain that also sells things online in the United States. It used to have many stores, but now there are only six left. Three of these stores are in the United States Virgin Islands, one is in Kendale Lakes, Florida, one in Bridgehampton, New York, and one in Tamuning, Guam.
Kmart is currently owned by a company called Transformco. Its main office is in Hoffman Estates, Illinois.
The company started way back in 1899 as the S. S. Kresge Corporation. It changed its name to Kmart Corporation in 1977. The very first store with the Kmart name opened in 1962 in Garden City, Michigan. At its busiest time in 1994, Kmart had 2,486 stores around the world! From 2005 to 2019, Kmart was part of Sears Holdings Corporation. Since 2019, it has been owned by Transformco.
Contents
Kmart's Story
How it Started
.jpg)
The person who started the company that became Kmart was named S. S. Kresge. He learned a lot about selling things from another store owner, Frank Winfield Woolworth. In 1897, Kresge used $6,700 he had saved to open a "five-and-dime" store in Memphis, Tennessee. These stores sold many different items for very low prices.
Kresge opened a second store in Detroit the next year. In 1912, his company, S.S. Kresge Company, had 85 stores. By 1924, Kresge was very successful, owning hundreds of stores. The company kept growing, reaching 597 stores by 1929. After World War II, many people moved from cities to the suburbs, which changed how people shopped.
The Kmart Era Begins
.svg){kind=small}
In 1962, under the leadership of Harry Cunningham, the first store named Kmart opened in San Fernando, California. This was just six months before the first Walmart store opened! The first large Kmart store was in Garden City, Michigan. Sixteen more Kmart stores opened that same year. Kmart also had a chain of grocery stores called Kmart Foods for a while.
Even though Kmart stores were opening, the company was still officially called S.S. Kresge Company. The company founder, S.S. Kresge, passed away in 1966 at 99 years old. In 1977, the S.S. Kresge Company officially changed its name to K Mart Corporation.
Changes in the 1980s
By 1981, there were over 2,000 Kmart stores across the United States and Canada. In 1987, Kmart sold its remaining S.S. Kresge and Jupiter stores in the U.S. to focus on the Kmart brand.
For a long time, Kmart was the second-largest retailer in the U.S., right after Sears. But in the 1980s, things started to change. Many Kmart stores began to look old and needed updates. The company also started focusing on other businesses it owned, like Sports Authority and Waldenbooks, instead of just Kmart stores.
The Famous Blue Light Special
The Blue Light Special was a super fun and unique sale at Kmart! It was a special deal that only lasted for a short time, usually just an hour, during store hours. When a Blue Light Special was happening, a rotating blue light (like on a police car) would flash, and an announcement would come over the store's speakers saying, "attention Kmart shoppers!" This phrase became very famous in pop culture.
The idea was to quickly sell items that weren't moving fast. It started in 1965 but was stopped in 1991. However, Kmart brought it back several times over the years, including in 2001, 2005, 2009, and 2015, because people loved it so much!
A New Look in the 1990s
.jpg)
In 1990, Kmart changed its logo to a new red "K" design to give itself a fresh look. They also started remodeling stores. In 1991, the company officially changed its name slightly to Kmart Corporation.
Kmart also started selling special products from famous people like Martha Stewart and Kathy Ireland. They also had exclusive items from popular brands like Sesame Street and Disney.
Kmart opened Super Kmart Centers in the 1990s. These were much larger stores that included a full grocery store along with general merchandise. The first one opened in Medina Township, Ohio, in 1991.
Big Kmart stores also opened, starting in 1997. These stores focused more on home items, kids' clothes, and everyday essentials. Many regular Kmart stores were updated to become Big Kmart stores, and this helped Kmart's sales grow.
However, Kmart faced tough competition from stores like Walmart and Target. Kmart didn't invest enough in new computer technology to manage its products, which made it harder to compete.
Financial Challenges and Sears Merger
In January 2002, Kmart faced serious financial trouble and had to file for bankruptcy protection. This meant the company needed to reorganize its business to avoid completely shutting down. As part of this, Kmart closed over 300 stores and many employees lost their jobs.
After going through bankruptcy, Kmart got a new owner, Edward Lampert, through his company ESL Investments. He worked to make the company stronger by cutting costs and closing stores that weren't doing well. In 2003, Kmart started trading on the stock market again.
.jpg)
In 2004, Kmart announced a big plan: it would buy Sears for $11 billion! This created a new company called Sears Holdings Corporation. The idea was to keep both Sears and Kmart stores open. Kmart's main office also moved to Hoffman Estates, Illinois, where Sears was located.
After the merger, Kmart stores started getting remodeled with a new orange and brown look. They also began selling Sears brands like Kenmore Appliances and Craftsman tools in Kmart stores.
Store Closures and Decline
Starting in 2011, Sears Holdings announced that many Kmart and Sears stores would close because sales were not good. This continued for several years. Kmart faced more and more competition from other large retailers and online shopping.
Many Kmart stores, including the very first one in Garden City, Michigan, closed their doors. Financial experts began to worry about the future of both Kmart and Sears.
In 2018, Sears Holdings, Kmart's parent company, filed for bankruptcy again. This led to even more Kmart stores closing across the country. By early 2019, it looked like the company might close completely, but a deal was made to keep some Sears and Kmart stores open.
New Ownership and Fewer Stores
In February 2019, the remaining Kmart stores were sold to Transform Holdco, which is now called Transformco. This company continues to operate the few remaining Kmart stores.
Since then, more Kmart stores have closed. By April 2022, only three Kmart stores were left in the main part of the United States. That number dropped to two by late 2023. Today, Kmart mostly operates online and has a few stores in places like the U.S. Virgin Islands and Guam.
Kmart's Headquarters
Kmart's main office used to be in Troy, Michigan. It was a very large building with many connected parts. After Kmart bought Sears in 2005, the headquarters moved to Hoffman Estates, Illinois. In 2021, Transformco announced plans to sell the Hoffman Estates headquarters building.
Kmart Around the World
Kmart has also had stores in other countries over the years.
Australia and New Zealand
The first Kmart store in Australia opened in 1969. Kmart Australia started as a partnership between the S.S. Kresge Company and an Australian company called Coles. The first New Zealand store opened in 1988. Later, Kresge sold its share, and now the Kmart stores in Australia and New Zealand are owned by a company called Wesfarmers. These Kmart stores are separate from the ones in the U.S.
Canada
Kmart opened its first store in Canada in 1963. However, Kmart closed many of its Canadian stores in the 1980s and 1990s. In 1998, the remaining 112 Kmart stores in Canada were sold to another company called Zellers. These stores were either closed or changed into Zellers stores.
Slogans
- The Saving Place (1960s–1990)
- Your Lowest Price is a Kmart Price (1990–1998)
Europe
In 1992, Kmart bought 13 department stores in the former Czechoslovakia (now the Czech Republic and Slovakia). These stores were quite successful. But in 1996, because of its problems in the U.S., Kmart sold these stores to a British company called Tesco.
Mexico
In the 1990s, Kmart opened four stores in Mexico. These were large "supercenters" that sold groceries and other products. In 1997, these stores were sold to a Mexican hypermarket chain called Mega.
Singapore
Kmart also had a store in Singapore in 1994, but this partnership ended in 1996.
How Kmart Helps Others
Kmart had a program called Kmart for Kids, which supported charities that help children.
- They were a big supporter of the March of Dimes, raising over $114 million for the charity over many years.
- Kmart also helped St. Jude Children's Research Hospital through its "Thanks and Giving" campaign, raising millions of dollars for sick children.
- In 2008, Kmart was recognized for its support of the American Diabetes Association's "Step Out: Walk to Fight Diabetes" program.
Kmart and Racing
Kmart was a sponsor in NASCAR and the CART racing series. They sponsored famous drivers like Nigel Mansell and the Andretti family (Michael and Mario Andretti). Kmart also sponsored NASCAR races, like the Kmart 400.
Operations in Puerto Rico
Kmart opened its first store in Puerto Rico in 1959. Over the years, many Kmart and Kresge stores opened on the island. In 1998, Kmart invested a lot of money to turn many of its stores in Puerto Rico into the larger Big Kmart format.
However, during Kmart's financial troubles in the 2000s and 2010s, many stores in Puerto Rico began to close. By 2022, the last Kmart store in Puerto Rico closed its doors, meaning Kmart no longer operates there.
Operation in Guam
Kmart still has a store in Tamuning, Guam. This store is very popular with both local customers and tourists. It sells a lot of goods each year and has many visitors, partly because there isn't as much competition or online shopping options in Guam.
Images for kids
-
A Big Kmart store in Willow Street, Pennsylvania (store #3810) as it appeared on its last day of operation, April 18, 2021; this was one of the last two Kmart stores in Pennsylvania, this location is now Ocean State Job Lot
-
This Super Kmart Center logo was used on the former Super Kmart Center stores in Mexico during the 1990s
-
The Big Kmart logo, stylized as BIG Kmart, was used for stores that were opened or renovated in the late 1990s (1997–2002)
-
The third Super Kmart Center logo, spelled out as Kmart Supercenter, was only used for printed ads and street signs (2004–2018)
-
The KDollar logo (November 2004–2012)
-
Located in Greenwich, NY. The smaller Big Kmart #9274 was located in Greenwich, New York, in a former Big N in 2017; this store closed in March 2019 along with 79 other Kmart and Sears stores, this location is now a Big Lots
See also
In Spanish: Kmart para niños
- Kmart Australia
- Sears Holdings
- Transformco
