The last full-sized Kmart in the continental United States has closed its doors, marking the end of an era for a once-mighty retail chain. The store, located in Bridgehampton, New York, shut down for the final time on Sunday night, leaving just one smaller Kmart with a limited selection still operating in Miami. Other stores remain in Guam and the U.S. Virgin Islands, but the closure signifies a significant chapter ending for a brand that was once synonymous with American retail.
The closure at Bridgehampton Commons, roughly 95 miles east of Manhattan, paves the way for a new chapter as Target prepares to move into the space. According to The Long Island Business Journal, the big-box retailer purchased the lease from Transformco, the parent company of Kmart and Sears, anticipating the store’s closure. Transform has yet to comment on the decision, but reports suggest the shift was planned years ago.
The news has left a sense of nostalgia among long-time Kmart shoppers, who recall the store’s heyday. Known for its “Blue Light Specials” and affordable product range, Kmart was a fixture in communities across the country for decades.
At its peak, Kmart operated over 2,000 locations across the United States, making it one of the country’s largest and most recognized retailers. The chain was famous for its variety of products, ranging from clothing and electronics to toys and home goods, offering shoppers convenience and value. However, as e-commerce emerged and consumer preferences shifted, Kmart struggled to keep up with the fast-changing retail landscape.
In 2005, Kmart merged with Sears in a deal orchestrated by hedge fund manager Eddie Lampert, who served as CEO. The merger was intended to revitalize both brands, but instead, it accelerated their decline as they struggled to adapt to the growing popularity of online shopping and competition from emerging retail giants like Amazon, Walmart, and Target.
The combined company eventually filed for Chapter 11 bankruptcy protection in 2018 after years of falling sales and mounting debts. Though it narrowly escaped liquidation in early 2019, it has never fully recovered. Lampert, who bought the merged company out of bankruptcy, has managed to keep the Kmart and Sears brands alive, but only on a shoestring budget, resulting in widespread store closures and layoffs.
Over the past 15 years, Sears and Kmart have shuttered more than 3,500 stores and eliminated approximately 250,000 jobs. Once considered a mainstay of American retail, the companies now operate a fraction of their former store count, with dwindling foot traffic and a fading presence in the U.S. retail market.
The closure of the Bridgehampton Kmart is a stark reminder of how much the retail world has changed in the past two decades. Once known for its famous “Blue Light Specials” — spontaneous in-store sales marked by flashing blue lights — Kmart was a go-to destination for bargain hunters. The store’s unique promotions and vast product offerings attracted families across the country. Now, the lights have dimmed, leaving behind memories of a retail empire that couldn’t survive the pressures of the modern marketplace.
“It’s sad to see it go,” said longtime Bridgehampton resident John Mitchell. “Kmart was a part of the community here. It’s where a lot of people would do their back-to-school shopping, buy holiday gifts, and find deals on everyday items.”