Target has scooped up five Kmart stores as the big-box chain continues to defy the financial havoc brought on by the pandemic.
Transformco Properties — the parent of Kmart and Sears — has completed the sale and assignment of five Kmart store leases to Target Corporation, the company announced in a press release. The stores are in Kill Devil Hills, North Carolina; Jackson, Wyoming; Scotts Valley, California; Wall, New Jersey; and Auburn, Maine.
Though the pandemic was a death knell for many retailers, Target has been in expansion mode. The Minnesota-based chain is planning to open up to 40 stores a year, officials said at the company’s third-quarter earnings call last year. As of November, the company had 1,897 stores nationwide.
A Target spokesperson confirmed the latest additions, and in a statement said, “we’re excited to bring an easy, safe and convenient shopping experience to new guests.”
It’s a different story for Kmart, which once operated over 2,100 stores across all 50 states. Transformco, which acquired both brands out of bankruptcy, plans to shutter 51 Sears locations and 45 Kmart stores by mid-February, according to USA Today. The company will operate just 182 stores in total following the closures.
“We will continue to evaluate our Sears and Kmart footprint, consistent with our overall retail and service strategy,” Transformco said in a November statement.
Transformco’s portfolio consists of 59.8 million square feet of real estate. In 2019, Transformco acquired 223 Sears and 202 Kmart stores from Sears Holdings for $5.2 billion.