Sears & Kmart 2024: Will someone please put them out of their misery?

[veteran+]

I have family that lives in that area.

Their words:

Junk Store

[retailfanmitchell019]

The pictures online of Bridgehampton (the final Kmart) are..... Interesting. Looks like someone has been trying to hold the old linoleum floor together with some discount tile and a hot glue gun. Some really bad repairs and not sure if it is actually flat or not based on the pictures? I would worry about it being a tripping hazard liability. There are random mismatched signs, blue rings for some categories and red flat signs for others as if they used what's left of two different design packages to cobble together a store. The electronics department looks to have discount kids suitcases where they would have electronics. And pictures make it look like the store has been reduced in size with a gondola wall behind customer service to cut the square footage to what they can actually stock. Still appears to have some wide empty spaces on the floor. This can't be profitable or sustainable. Not sure that could be considered a full line store based on the pictures either, kinda looks like a Big Lots with some clothing and aisles of cheap kitchen electrics. Lots of handwritten sale signs not unlike a low budget liquidation. That isn't surprising because it's the Transformco specialty.

I suspect Target will eventually go into that space... the area is too rich for Walmart.

[ClownLoach]

The pictures online of Bridgehampton (the final Kmart) are..... Interesting. Looks like someone has been trying to hold the old linoleum floor together with some discount tile and a hot glue gun. Some really bad repairs and not sure if it is actually flat or not based on the pictures? I would worry about it being a tripping hazard liability. There are random mismatched signs, blue rings for some categories and red flat signs for others as if they used what's left of two different design packages to cobble together a store. The electronics department looks to have discount kids suitcases where they would have electronics. And pictures make it look like the store has been reduced in size with a gondola wall behind customer service to cut the square footage to what they can actually stock. Still appears to have some wide empty spaces on the floor. This can't be profitable or sustainable. Not sure that could be considered a full line store based on the pictures either, kinda looks like a Big Lots with some clothing and aisles of cheap kitchen electrics. Lots of handwritten sale signs not unlike a low budget liquidation. That isn't surprising because it's the Transformco specialty.

I suspect Target will eventually go into that space... the area is too rich for Walmart.

My guess is they own it, and get enough business from the summer months to pay the bills all year long. It makes sense this would be the last Kmart (not counting that Miami thing) despite it being a seeming misfit for the town. I agree that eventually this will land in the hands of Target but I'm guessing right now it's an incredibly valuable asset that secures whatever loans Transform Co operates from.

[storewanderer]

The pictures online of Bridgehampton (the final Kmart) are..... Interesting. Looks like someone has been trying to hold the old linoleum floor together with some discount tile and a hot glue gun. Some really bad repairs and not sure if it is actually flat or not based on the pictures? I would worry about it being a tripping hazard liability. There are random mismatched signs, blue rings for some categories and red flat signs for others as if they used what's left of two different design packages to cobble together a store. The electronics department looks to have discount kids suitcases where they would have electronics. And pictures make it look like the store has been reduced in size with a gondola wall behind customer service to cut the square footage to what they can actually stock. Still appears to have some wide empty spaces on the floor. This can't be profitable or sustainable. Not sure that could be considered a full line store based on the pictures either, kinda looks like a Big Lots with some clothing and aisles of cheap kitchen electrics. Lots of handwritten sale signs not unlike a low budget liquidation. That isn't surprising because it's the Transformco specialty.

I suspect Target will eventually go into that space... the area is too rich for Walmart.

My guess is they own it, and get enough business from the summer months to pay the bills all year long. It makes sense this would be the last Kmart (not counting that Miami thing) despite it being a seeming misfit for the town. I agree that eventually this will land in the hands of Target but I'm guessing right now it's an incredibly valuable asset that secures whatever loans Transform Co operates from.

The store is on a long term lease. I think it is about 80k square feet so it is not exactly small; that is actually quite large for a group 9 store. It has quite a while left on its lease. This was never a Big Kmart but I see in recent photos they are marketing an "expanded food selection." I thought due to the grocer in the center maybe they were limited how much food they could sell but this recent "expanded food selection" would appear to counter that thought. In this case Target could easily take this location over and insert its current food heavy format they seem to like to do on these former Kmarts.

Something about Eddie having family living near the store or something... still not sure exactly... but that is what I heard.

I thought it used to have a pharmacy? But it doesn't anymore.

[ClownLoach]

I suspect Target will eventually go into that space... the area is too rich for Walmart.

My guess is they own it, and get enough business from the summer months to pay the bills all year long. It makes sense this would be the last Kmart (not counting that Miami thing) despite it being a seeming misfit for the town. I agree that eventually this will land in the hands of Target but I'm guessing right now it's an incredibly valuable asset that secures whatever loans Transform Co operates from.

The store is on a long term lease. I think it is about 80k square feet so it is not exactly small; that is actually quite large for a group 9 store. It has quite a while left on its lease. This was never a Big Kmart but I see in recent photos they are marketing an "expanded food selection." I thought due to the grocer in the center maybe they were limited how much food they could sell but this recent "expanded food selection" would appear to counter that thought. In this case Target could easily take this location over and insert its current food heavy format they seem to like to do on these former Kmarts.

Something about Eddie having family living near the store or something... still not sure exactly... but that is what I heard.

I thought it used to have a pharmacy? But it doesn't anymore.

I mean it's the Hamptons... Of course he has family there... He is rich.

Since it's leased it must be a hell of a deal. Still one where the asset value goes on the books, while the lease goes on the liability line. It's like a low mile lease on a Ferrari, payments are a fraction of the value of the car. I'm sure if Kmart closed and didn't sell the lease to Target and it reverted back to landlord they would raise the rent 1000%. The landlord probably has a right of first refusal and non-transferable lease otherwise they would have disposed of the store as it assuredly would be fought over by not only Target but maybe Wegmans and others who would love to get a store there. So since it can't be monetized might as well keep the doors open as long as it is cash flow positive.

The pictures really make me think half or more of the store is walled off. No way it is larger than 40K. There is a picture of customer service that gives it all away... Behind that is a gondola wall that cuts the store in half from front to back.

[Jeff]

Recently saw a Facebook post of the Whittier, Ca store. It's down to one level only (out of 3). While stocked well, I don't see it surviving another year. Wonder how the reopened Burbank is doing?

[storewanderer]

Recently saw a Facebook post of the Whittier, Ca store. It's down to one level only (out of 3). While stocked well, I don't see it surviving another year. Wonder how the reopened Burbank is doing?

Whittier and Concord appear to have very low inventory level (lower than low)...

[BatteryMill]

More confusing news. A lawsuit behind Sears closing at the PGA Mall. https://www.wlrn.org/business/2024-03-0 ... ounty-mall

[storewanderer]

More confusing news. A lawsuit behind Sears closing at the PGA Mall. https://www.wlrn.org/business/2024-03-0 ... ounty-mall

I still don't understand why they closed. Maybe they reached some kind of an agreement?

Also to close without a liquidation sale? That is very odd.

Liquidation sales are Sears/Kmart specialty.

[Super S]

Liquidation sales are Sears/Kmart specialty.

Especially when they drag on for years....