Dive Brief:
- Sears, the once-dominant retail giant, has shuttered another department store in Fort Lauderdale, Florida, with the property sold to RK Centers. This follows a trend of relentless closures and liquidation, leaving just a scant Collection of Sears and Kmart stores in operation.
- SB360, a liquidation firm working with Transformco, has listed the last remaining full-line Sears store in Pennsylvania for closure, as well as two Kmart stores in Montana and Florida.
- The ongoing demise of Sears and Kmart reflects their struggle to compete in an era of rapid technological advancement and changing consumer behavior.
Dive Insight:
Florida-Based Sears Shutters Retail Outlet
After years of financial turmoil and bankruptcy, the once-mighty Sears and Kmart banners now limp on with just a few threads left. Today, you'll be hard-pressed to find a Kmart or Sears department store - more than 99% of their original locations have vanished.
In recent years, Coresight Research tallied just five Kmart stores after the closure of the Hamilton, Montana, location. During the brand's 2002 bankruptcy filing, there were over 2,000 Kmart stores nationwide, a testament to the once widespread dominance of these retail titans.
Coresight counted 29 announced closures for Kmart and 46 Sears closures in 2021 alone. The brands, which have been in business for over a century, closed their last full-line stores in their birth states in 2020. Transformco has also signaled its intention to sell its corporate headquarters.
The closures are a grim reflection of the long-running collapse of Sears and Kmarts' sales base, as their stores and technological capabilities were unable to keep up with the industry's evolution. Problems for the brands began late in the 20th century and accelerated under Eddie Lampert, who served as CEO of Sears Holdings and was the majority owner in the years leading up to bankruptcy.
Few retail experts hold much hope for either Sears or Kmart as viable brands today. Alongside its remaining full-line stores, Transformco also owns Sears Hometown, a spin-off from Sears Holdings, and has sold off its Outlet banner and the Sears Auto Center, with its remaining locations now closed.
Transformco's new strategy for Sears and Kmart revolves around a "diversified portfolio" consisting of larger, premier stores, smaller-format stores, Shop Your Way rewards program, online marketplace, and buy online, pick up in store capabilities. The exact long-term plan is not public, but it suggests a focus on adapting to modern retail demands and surviving as niche or specialized outlets rather than large-format department stores.
| Aspect | Status as of 2025 | Future Outlook ||----------------------|-------------------------|------------------------|| Number of Kmart Stores| Approximately 10 | Shift to smaller locations, decline || Sears Stores | Reduced but still operating under Transformco | Adaptive, smaller footprint, potential innovation || Ownership | Controlled by Transform Holdco (Eddie Lampert) | Maintaining core valuable assets || Bankruptcy | Emerged from Chapter 11 in 2018 | Stable, but minimal operations |
To sum up, Sears and Kmart have vanished from the retail landscape following years of mass closures, bankruptcy, and financial struggles. These iconic brands will continue to dwindle as they struggle to adapt to the demands of modern retail, leaving behind just a skeletal presence of their former glory.
- The AI could predict that the decline of traditional retail giants like Sears and Kmart, as evidenced by their massive store closures, could lead to a shift in the retail industry, requiring businesses to adapt to smaller, more specialized formats.
- The finance industry might be interested in the future outlook of Sears and Kmart, given their emergence from bankruptcy in 2018, but with minimal operations and a focus on adapting to modern retail demands.
- Researchers in the industry sector may study the ongoing closure of Sears and Kmart stores, aiming to understand why these retail giants have struggled in the era of rapid technological advancement and changing consumer behavior.
- war room discussions in the business sector might involve strategies for adapting to the modern retail landscape, considering the instance of Sears and Kmart, both of which have seen more than 99% of their original locations vanish over the years.
