Target’s expansion continues with takeover of old Kmart stores

Big-box chain previously said it would open up to 40 stores every year

National /
Jan.January 25, 2021 05:00 PM
As of November, Target had 1,897 stores nationwide. (iStock)

As of November, Target had 1,897 stores nationwide. (iStock)

 

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.





    Related Articles

    arrow_forward_ios
    Theaters in some cities are opening with restrictions. (Getty, Photo Illustration by Alison Bushor for The Real Deal)
    Coming attraction: Movie theaters reopen in New York, San Fran
    Coming attraction: Movie theaters reopen in New York, San Fran
    Restaurants and bars accounted for a majority of the gains in February (iStock)
    Leisure, hospitality big winners in February job gains
    Leisure, hospitality big winners in February job gains
    The company currently operates 761 stores, and intends to open 100 new stores this fiscal year. (iStock)
    Retailer Burlington plans to double store count
    Retailer Burlington plans to double store count
    (Getty, Photo Illustration by The Real Deal)
    Retail had its reckoning. Will subleases flood the market?
    Retail had its reckoning. Will subleases flood the market?
    Ascena owns Ann Taylor, Lane Bryant, Lou & Grey and Cacique. (Getty)
    Ascena restructuring approved post-bankruptcy
    Ascena restructuring approved post-bankruptcy
    (Getty)
    Disney will shutter dozens of brick-and-mortar stores
    Disney will shutter dozens of brick-and-mortar stores
    NYSRA president Melissa Fleischut (Photos via iStock, Getty, NYSRA/Illustration by Kevin Rebong for The Real Deal)
    Nearly 30% of New York restaurants expect to shutter in coming months
    Nearly 30% of New York restaurants expect to shutter in coming months
    Apollo Global Management will take over craft retailer Michaels in a deal that values the company at $3.3 billion. (Wikipedia Commons, iStock)
    Craft retailer Michaels to go private in $5B deal
    Craft retailer Michaels to go private in $5B deal
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...