If you want to trade Kmart stock, you’re out of luck. This popular 90’s company isn’t publicly traded. Their history is full of tumult. They were once traded on the stock market until they weren’t. They were a store until bankruptcy happened.
S. S. Kresge Company, the precursor to Kmart Corporation, went public with a listing on the New York Stock Exchange in 1918. the founder of Kmart Corporation, S. S. Kresge, had already established a successful retail business. At that time, the company operated a chain of five-and-dime stores.
The company that eventually became Kmart, Kmart Corporation, was not founded until many years later. S. S. Kresge Company opened the first Kmart discount store in 1962, officially launching the Kmart brand.
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Kmart Introduction (No Stock Symbol)
Kmart Corporation, now operated by Transformco, has had a tumultuous history regarding its stock performance. From its listing on the NYSE in 1918, the company initially traded successfully. However, between 1999 and 2002, Kmart’s stock price suffered due to poor performance, intense competition, and management issues.
Over the years, Kmart faced declining sales, changes in shopping habits, and increased competition, particularly from Walmart. Because of this, Kmart filed for bankruptcy in 2002.
The company underwent a series of ownership changes and mergers as the years passed. In 2005, Kmart merged with Sears to form Sears Holdings Corporation, the parent company of both Kmart and Sears.
However, Sears Holdings Corporation also faced financial difficulties and filed for bankruptcy in 2018. After the bankruptcy, Kmart was operated by Transformco, an online retailer in the United States. Their history meant Kmart stock was no more.
Why Did Kmart Go Bankrupt?
Kmart’s parent company, Sears Holdings, declared bankruptcy in 2018 and has since closed hundreds of locations. Kmart, once a leading retail chain in the United States, experienced a decline and eventual bankruptcy due to many factors, including poor management, fierce competition, and changing consumer preferences.
According to Forbes, Kmart’s troubles included financial mismanagement, excessive debt, poor merchandising and supply chain management, and overexpansion during the 1990s. And Kmart stock was no more.
Additionally, the increasing popularity and dominance of competitors such as Walmart and Target, which offered lower prices and better selection, contributed to Kmart’s decline and inability to attract customers.
In 2002, Kmart filed for Chapter 11 bankruptcy protection, which allowed the company to restructure and reduce its debt load but also resulted in the closure of hundreds of stores. Eventually, Kmart merged with Sears Holdings Corporation in 2005, resulting in a combined entity called Sears Holdings Corporation.
However, this merger did not reverse Kmart’s decline, and the company continued to shutter stores in subsequent years, even after Sears declared bankruptcy in 2018.
What Company Owns Kmart?
Kmart Corporation, which Transformco now operates, owns Kmart. Transformco is an online retailer in the United States, operating six remaining Kmart big-box department stores.
Unfortunately, you cannot buy stock in Transformco. Likewise, it is a privately held company and, therefore, not publicly traded on stock exchanges like the NYSE or NASDAQ.
Kmart is not a publicly traded company. As mentioned, it has undergone ownership changes and is now operated by Transformco, which is not publicly traded.
Are there any Kmarts left in the U.S.? Only about six stores remain in the U.S. However, they have about 30 stores throughout Puerto Rico, Guam, the U.S. Virgin Islands, and other American territories.
How Do I Buy Kmart Stock?
You can’t. Kmart stock is not available for sale on any stock exchange, so buying it is impossible. Even its parent company is privately owned. Therefore, you must look elsewhere to invest in a big box store.
Kmart in Australia: Record Earnings
Kmart, however, is operating in Australia and appears to be doing well! Kmart’s earnings jumped 26.5 percent to a record high of $601 million following strong demand for its Anko range (85 percent of store products) and women’s and youth clothing. Can you trade Kmart stock in Australia?
Kmart & Wesfarmers
The same Australian company owns both Kmart and Target—Wesfarmers. In August 2017, Wesfarmers purchased the use of the Kmart brand name in Australia and New Zealand for $100 million.
Wesfarmers has owned Target and Kmart since 2007, when it acquired Coles Group Limited. At the time, there were three divisions—one for Coles, one for Kmart, and one for Target.
In 2018, Wesfarmers demerged with Coles but kept Kmart and Target.
Wesfarmers also owns Bunnings Warehouse, Beaumont Tiles, Officeworks and Priceline. Kmart operates in Australia. It originated in 1969, with its first store in Burwood East, Victoria. It has since grown to become a trusted and iconic retail brand in Australia and New Zealand, offering a wide range of products at affordable prices.
The Kmart Group owns Kmart Australia, which includes Target Australia and Catch. Its sourcing arm, KAS Group Asia (KGA), supports Kmart Australia’s and other brands’ operations.
Does that mean I can trade Kmart stock? Once again, you cannot buy stock in Kmart Australia. Kmart Australia Limited is a retail store chain owned by Wesfarmers and has no publicly traded stock.
Kmart Stock Competitors
Kmart’s competitors include Walmart, Amazon, The Home Depot, Target, and FreshDirect. These top retailers in the United States offer a wide range of products such as groceries, home goods, electronics, and apparel and compete on price, selection, and convenience.
They all have a significant advantage in scale and advertising budgets, allowing them to compete effectively with Kmart and other smaller retailers.
In particular, Walmart, Amazon, and Target have a larger market share and broader reach than Kmart. With a network of more than 10,000 stores globally, Walmart is the biggest retailer in the world. Walmart offers various products, including groceries, electronics, and apparel.
On the other hand, Amazon is an online retailer known for its vast range of products, competitive pricing, and fast delivery times. Target is another major retail chain specializing in household essentials, groceries, and electronics, with over 1,900 stores across the United States.
In summary, Kmart’s competitors include major retailers such as Walmart, Amazon, The Home Depot, and Target, which offer similar products and compete aggressively on price and convenience.
Exchange-Traded Funds (ETFs)
ETFs are funds used for investment that can be traded on stock exchanges like individual stocks. They are created to mirror the performance of a particular index, sector, or asset class.
Let’s take Amazon, for example. You can buy Amazon stock through an ETF (Exchange-Traded Fund) that includes Amazon as one of its holdings. Several ETFs include Amazon as one of their holdings.
These ETFs expose investors to a basket of stocks, including Amazon, without needing to buy individual shares of Amazon stock. You can’t trade Kmart stock, but an Amazon EFT is a great alternative.
Consumer Discretionary Select Sector SPDR Fund (XLY)
This ETF seeks to track the performance of the Consumer Discretionary Select Sector Index, which includes Amazon as one of its constituents.
Vanguard Consumer Discretionary Index Fund (VCR): The VCR ETF aims to replicate the performance of the MSCI US Investable Market Index (IMI)/Consumer Discretionary 25/50 Index, which includes Amazon among its holdings.
First Trust Dow Jones Internet Index Fund (FDN)
FDN is an ETF that tracks the performance of the Dow Jones Internet Composite Index, which includes major internet companies such as Amazon.
These ETFs can be purchased through brokerage accounts or investment platforms offering ETF trading access. So make sure you check into these Kmart stock alternatives.
Final Thoughts: Kmart Stock
Kmart stock was a publicly traded company in the past. It was founded as S.S. Kresge Company. In 1918, Kmart became publicly traded, with its shares listed on the New York Stock Exchange. Kmart filed for bankruptcy in 2002, and you cannot buy Kmart stock.
Frequently Asked Questions
As of now, Kmart is not a publicly traded company.
Transform is the company that owns Kmart.
It's difficult to determine as Transformco is not a public company but a subsidiary of ESL Investments. As it stands, Kmart is a subsidiary of a subsidiary.
Only about six stores remain in the U.S. However, they have about 30 stores throughout Puerto Rico, Guam, the U.S. Virgin Islands, and other American territories.
