Once a retail giant, Kmart nears extinction after New Jersey closure (2024)

AVENEL, N.J. — The familiar sights and sounds are still there: the scuffed and faded floor tiles, the relentless beige-on-beige color scheme, the toddlers’ clothes and refrigerators and pretty much everything in between.

There’s even a canned recording that begins, “Attention, Kmart shoppers” — except it’s to remind folks about COVID-19 precautions, not to alert them to a flash sale over in ladies’ lingerie like days of old.

Many of the shelves are bare, though, at the Kmart in Avenel, New Jersey, picked over by bargain hunters as the store prepares to close its doors for good April 16.

Once it shutters, the number of Kmarts in the U.S. — once well over 2,000 — will be down to three in the continental U.S. and a handful of stores elsewhere, according to multiple reports, in a retail world now dominated by Walmart, Target and Amazon.

The demise of the the store in the middle-class suburb, 15 miles south of New York City, is the tale of the death of the discount department store writ small.

“You’re always thinking about it because stores are closing all over, but it’s still sad,” said cashier Michelle Yavorsky, who said she has worked at the Avenel store for 2 ½ years. “I’ll miss the place. A lot of people shopped here.”

In its heyday, Kmart sold product lines endorsed by celebrities Martha Stewart and Jaclyn Smith, sponsored NASCAR auto races and was mentioned in movies including “Rain Man” and “Beetlejuice.” It was name-dropped in songs by artists from Eminem to the Beastie Boys to Hall & Oates; in 2003, Eminem bought a 29-room, suburban Detroit mansion once owned by former Kmart chairman Chuck Conaway.

The chain cemented a place in American culture with its Blue Light Specials, a flashing blue orb affixed to a pole that would beckon shoppers to a flash sale in progress. Part of its success was due to its early adoption of layaway programs, which allowed customers who lacked credit to reserve items and pay for them in installments.

For a time, Kmart had a little bit of everything: You could shop for your kids’ back-to-school supplies, get your car tuned up and grab a meal without leaving the premises.

“Kmart was part of America,” said Michael Lisicky, a Baltimore-based author who has written several books on U.S. retail history. “Everybody went to Kmart, whether you liked it or not. They had everything. You had toys. You had sporting goods. You had candy. You had stationery. It was something for everybody. This was almost as much of a social visit as it was a shopping visit. You could spend hours here. And these just dotted the American landscape over the years.”

Kmart’s decline has been slow but steady, brought about by years of falling sales, changes in shopping habits and the looming shadow of Walmart, which coincidentally began its life within months of Kmart’s founding in 1962.

Struggling to compete with Walmart’s low prices and Target’s trendier offerings, Kmart filed for Chapter 11 bankruptcy protection in early 2002 — becoming the largest U.S. retailer to take that step — and announced it would close more than 250 stores.

A few years later, hedge fund executive Edward Lampert combined Sears and Kmart and pledged to return them to their former greatness, but the recession and the rising dominance of Amazon contributed in derailing those goals. Sears filed for Chapter 11 in 2018 and currently has a handful of stores left in the U.S. where it once had thousands.

Kmarts continue to operate in Westwood, New Jersey; Bridgehampton, on New York’s Long Island, and Miami.

It didn’t have to end this way, according to Mark Cohen, director of retail studies at Columbia University in New York and former CEO of Sears Canada. Trying to compete with Walmart on price was a foolish strategy, he said, and Lampert was criticized for not having a retail background and appearing more interested in stripping off the assets of the two chains for their cash value.

“It’s a study in greed, avarice and incompetence,” Cohen said. “Sears should have never gone away; Kmart was in worse shape, but not fatally so. And now they’re both gone.

“Retailers fall by the wayside sometimes because they’re selling things people don’t want to buy,” he continued. “In the case of Kmart, everything they used to sell, people are buying but they’re buying it from Walmart and Target.”

Transformco, which owns Kmart and Sears, did not respond to an email seeking comment and a phone number listed for the company was not taking messages.

Nationwide, some former Kmarts remain vacant while others have been replaced by other big-box stores, fitness centers, self-storage facilities, even churches. One former site in Colorado Springs, Colorado, is now a popular dine-in movie theater.

Employees at the Kmart in Avenel found out last month that the store would close.

Unlike 20 years ago, when news of impending Kmart closures around the country prompted an outpouring of support from loyal shoppers and a Detroit radio station even mounted a campaign to try and save a local store, the closing of the Avenel location was met mostly with an air of resignation.

“It’s maybe a little nostalgic because I’ve lived my whole life in this area, but it’s just another retail store closing,” said Jim Schaber, a resident of nearby Iselin who said his brother worked in the shoe department at Kmart for years. “It’s just another sign of people doing online shopping and not going out to the retail stores.”

The closing packed a little more of an emotional punch for Mike Jerdonek, a truck driver who recalled shopping at Kmart in Brooklyn and Queens in his younger days.

“It’s like history passing right in front of our eyes,” he said as he sat in his car outside the Avenel store. “When I was younger I didn’t have any money, so it was a good place to shop because the prices were cheap. And to see it gone right now, it’s kind of sad.”

Once a retail giant, Kmart nears extinction after New Jersey closure (1)

The Associated Press

The Associated Press

Once a retail giant, Kmart nears extinction after New Jersey closure (2024)

FAQs

Once a retail giant, Kmart nears extinction after New Jersey closure? ›

Once it shutters, the number of Kmarts

Kmarts
The company was incorporated in 1899 as S. S. Kresge Corporation and renamed Kmart Corporation in 1977. The first store with the Kmart name opened in 1962 in Garden City, Michigan.
https://en.wikipedia.org › wiki › Kmart
in the U.S. — once well over 2,000 — will be down to three in the continental U.S. and a handful of stores elsewhere, according to multiple reports, in a retail world now dominated by Walmart, Target and Amazon.

How many Kmart stores are left in NJ? ›

After Kmart closes its last location in New Jersey this fall, the once-prominent department store chain will be left with just two stores nationwide.

What was the cause of Kmart closing? ›

In short, a “special strategy group” in the 1970s led to a lack of focus on the core merchandising business, causing growth to stall in the 80s and 90s. CEO Charles Conaway's subsequent fraud led to a chapter 11 bankruptcy filing in 2002, followed by a second filing in 2018 due to Edward Lampert's greed.

Why didn t Kmart survive? ›

The Sports Authority was acquired by Kmart in 1990 and spun off five years later. Kmart's profitability and sales peaked in 1992, and the later decline is attributed to competition with Walmart, Target, and internet shopping. In 1994, Kmart announced they would close 110 stores.

Where are the three remaining Kmart stores located? ›

Following the closure of the Avenel location, the stores in Westwood, New Jersey; Bridgehampton, New York; and Miami, Florida, will be the only Kmarts operating within the 50 United States. Kmart isn't the only former giant to fall from grace in the 21st century.

Who owns Kmart now? ›

Where is the biggest Kmart in the world located? ›

the world's largest Kmart is in Guam? Before coming here I was not even aware what a Kmart is. But indeed it is a very large shop for all kinds of food and non-food products, and apparently one of the main attractions of Guam for people coming from other Micronesian countries.

Is Kmart cheaper than Walmart? ›

Even before the K-Marts closed, they had good prices but weren't cheaper than Walmart. That's one reason they went out of business!!!

Was Kmart bigger than Walmart? ›

In 2002, Walmart took Kmart's place as the second-largest retailer, and the company filed for bankruptcy for the first time. Hedge fund operator Eddie Lampert bought the company's debt and combined it with Sears.

What crime did Kmart commit? ›

In a lawsuit filed in federal court in Detroit, the SEC accused the eight executives of causing Kmart to issue false financial statements by improperly accounting for millions of dollars in vendor “allowances” before the company's bankruptcy filing.

Is Kmart making a comeback? ›

In a bid to revive its long flagging sales, Kmart has unveiled a peculiar plan: selling stuff from companies that have gone out of business. The retailer, which is a unit of Sears Holdings , announced its plan this week, saying the strategy would help Kmart regain its luster.

What does the k in Kmart stand for? ›

It stands for Kresge. Sebastian S. Kresge founded a nationwide chain of five and dime stores. But over time tastes changed so management used the profits to create KMart and put these new stores in or near the new shopping malls that were popping up all over America.

Did Kmart or Walmart come first? ›

KMart started as Kresges in 1899 but the first KMart named store opened in Michigan in 1962. The first Walmart opened in 1962 as well; I don't know which opened first. The KMart name replaced Kresges everwhere in 1977, and the store chain grew very fast in the 1970s.

Where are the Kmart locations today? ›

For now, Kmart stores in the continental U.S., continue to operate in Westwood, New Jersey; Bridgehampton, on New York's Long Island; and Miami, Florida.

How many Kmarts are left in 2024? ›

As of April, 2024, there are 12 Kmart stores in the United States. These stores are located in 8 states and territories and 11 cities. The state with the most Kmart locations is U.S. Virgin Islands, with 3 stores. This is about 25% of all Kmart locations in the United States.

What store did Kmart merge with? ›

Even if he failed, many stores still held tremendous potential value in the form of real estate on which Kmart and Sears stores were located. In 2005, when the former competitors officially merged into a single company, Sears Holdings Corp., the new firm ranked as the third largest retailer in the United States.

Top Articles
Latest Posts
Article information

Author: Golda Nolan II

Last Updated:

Views: 5381

Rating: 4.8 / 5 (78 voted)

Reviews: 93% of readers found this page helpful

Author information

Name: Golda Nolan II

Birthday: 1998-05-14

Address: Suite 369 9754 Roberts Pines, West Benitaburgh, NM 69180-7958

Phone: +522993866487

Job: Sales Executive

Hobby: Worldbuilding, Shopping, Quilting, Cooking, Homebrewing, Leather crafting, Pet

Introduction: My name is Golda Nolan II, I am a thoughtful, clever, cute, jolly, brave, powerful, splendid person who loves writing and wants to share my knowledge and understanding with you.