Blue Light’s Out: Kmart Shuts Its Doors Forever, Signals End of a Retail Era

It’s goodbye to another icon of the 90’s as the last bluelight special went out for good. This final Kmart location in Westwood, New Jersey, was one of the few remaining stores after years of gradual closures due to bankruptcy and competition from other big-box retailers like Walmart, Target, and the rise of online shopping through platforms such as Amazon.

The Fall of Kmart:

• History: Kmart was once one of the largest retail chains in the U.S., with over 2,400 stores at its peak in the early 1990s. Founded in 1899 by Sebastian Kresge, the company revolutionized discount retailing, introducing a model that allowed customers to purchase a wide range of goods at low prices. Kmart became famous for its "Blue Light Specials," offering discounts announced in-store via a flashing blue light.

• Decline: Kmart began facing difficulties in the early 2000s due to mismanagement, stiff competition, and a failure to adapt to new market trends, especially the rise of e-commerce. The company filed for Chapter 11 bankruptcy in 2002. Though it merged with Sears Holdings in 2005, both brands continued to struggle, and many stores closed over the following decades.

• Impact of Bankruptcy and Store Closures: The company's second bankruptcy filing in 2018 spelled the beginning of the end, as Kmart and Sears Holdings sold off their remaining assets. This final closure signals the official end of Kmart’s presence as a brick-and-mortar retail chain.

The Westwood, New Jersey Store:

• This last store in Westwood became a symbol of Kmart's long decline. It was one of a handful of stores that managed to survive as the company scaled down its operations to a handful of locations. The store closure announcement came as part of a final wave of store liquidations across the U.S.

Sears Holdings, parent company of Kmart, exists only as a shadow of its former self. The company, once a dominant player in American retail with iconic brands like Sears and Kmart, has gone through significant financial struggles, including multiple rounds of bankruptcy filings, store closures, and asset sales as it winds down operations for good.