Kmart/Sears

Kmart began in 1899 as the S.S. Kresge Company, founded by Sebastian Spering Kresge. The first Kmart-branded store opened in 1962 in Garden City, Michigan, and the brand quickly became a familiar presence across the United States, known for its large-format discount retail locations. At its peak, Kmart operated more than 2,000 stores nationwide, shaping the landscape of American shopping for decades.

Over time, the company faced significant challenges as retail trends shifted. In 2005, Kmart merged with Sears, Roebuck and Co., forming Sears Holdings Corporation. The combined company struggled to adapt to changing consumer habits and increased competition, eventually filing for bankruptcy in 2018. Most of its assets, including the Kmart and Sears brands, were acquired in 2019 by Transform Holdco LLC, an affiliate of ESL Investments led by Eddie Lampert.

As of November 2025, Kmart operates only three stores in the continental United States, with a few additional locations in U.S. territories. The company’s headquarters remain in Hoffman Estates, Illinois, but its corporate structure is much leaner than in previous decades. Kmart’s current focus is on managing its remaining legacy stores and overseeing online sales through its website.

In recent years, Kmart has not opened new locations and continues to close stores, with its real estate activity centered on property management and disposition. The brand’s historic footprint and ongoing site closures have created opportunities for retail redevelopment across the country. Transformco manages both active Kmart stores and a large inventory of former sites, working with a small team that also oversees Sears operations.