A Fortress Falls
A Fortress Falls
The former Kmart Headquarters, dubbed "Fort Kresge" is currently being demolished after years of sitting abandoned. Here's a look back...
Kmart. When was the last time they were relevant on the retail scene? When was the last time you shopped at one? While it’s hard to believe now, at one point in time they were the hottest thing out there. Every city and town wanted one, and the majority of the time, they would receive their wish. Kmart was the pinnacle of the discount store era, and their stores dotted the nation. What better way to acknowledge their place in the consumer culture, than by erecting a huge sprawling office complex in the suburbs of Detroit, MI? A fortress showcasing their power to their hometown and beyond.
But first, let’s rewind a bit. Kmart was born in 1962, the discount store division of the S.S. Kresge dime store chain, created by executive Harry Cunningham. By this point, most Kresge stores were in downtown areas, which were in steady decline. Both department stores and dime stores of the era were looking to get out to the suburbs, and provide shoppers with more convenient locations, with ample parking that downtown locations could not provide.
The first official full size Kmart store opened March 1st, 1962 in Garden City, MI. It was 80,000 sq. feet. This was predated by a smaller store, at 24,000 sq. feet, opened January 25th that same year, in San Fernando, CA. Originally intended as a Kresge’s outlet, it was given the Kmart name at the last minute. With the opening of the Garden City store, the concept took off rapidly, with 18 stores open by the end of the year. While other discount chains had started prior to Kmart, this was the first discount store to take the country by storm, and Kresge embarked on a rapid expansion. Target and Walmart were founded the same year, in May and July respectively, but did not reach the same heights until later on. By the end of the decade, there would be 270 Kmart locations opened. The stores offered a full line of merchandise, ranging from both hardline goods to clothes, automotive service and gas stations, and even had leased supermarkets located within. For a more in-depth history of Kmart, please be sure to check out the wonderful Pleasant Family Shopping site.
By the late 60s, Kresge was outgrowing their downtown Detroit headquarters, and were looking for new digs. A plot of land was chosen at the corner of West Big Beaver Road and Coolidge Highway, located near the Somerset Mall (now Somerset Collection) in Troy. Designed by local architect firm Smith, Hinchman & Gryllis Associates, the complex stretched across 906,000 sq. feet of space. The space was created using a unique modular format, with 24 pods housing offices, and linked by interconnected walkways. Several peices of art were installed as well, including several works by Pablo Picasso, Andy Worhol, and others. The new headquarters opened in 1972, and was dubbed “Fort Kresge”.
By the end of the decade, the Kresge Corporation officially changed its name to The Kmart Corporation. By the 1980’s, there were over 3,000 stores in operation, and the Kresge stores that built the company were slowly shut down as leases expired. Some, to ride out long-term leases, were given the name Jupiter Stores, a bare bones, no frills operation. By all intents and purposes, Kmart was the clear winner, here.
By the 80’s, the Kmart brass was confident. Kmart was well known at this point. Things like their Blue Light Specials, and the phrase “Attention Kmart Shoppers” filled the American zeitgeist. In their hubris, management failed to take note of growing competition in the other parts of the country. The #2 retailer at the time, mis-management and ill conceived corporate descisions started to chip away at their empire. Aside from a few hits, such as the Super Kmart program, by the 90’s the company had run out of money, and stretched themselves thin by acquiring other businesses, such as Sports Authority and Borders Books. Stores were now perceived as old and tired, not having any major capital improvements done since their opening in most cases. The Big Kmart rollout in 1998, did little to alleviate the company’s problems. To the tune of $1.1 billion, a push to add more housewares and pantry items largely fell flat, as the stores were still viewed as cramped and dirty. By this point, Walmart had taken the lead on the supercenter format, and was encroaching on Kmart’s turf in every way. They would take the #1 retailer spot by the close of the decade.
On January 22nd, 2002 Kmart would file for bankruptcy. The largest such filing at the time, the chain would close hundreds of stores in a bid to reverse their waning fortunes. Billionaire, and kidnap victim Eddie Lampert bought Kmart out of bankruptcy, through his hedge fund ESL Investments. The company name would change to Kmart Holdings Corporation. The following year, Eddie Lampert would merge Kmart with Sears, a fellow struggling retailer, and create Sears Holdings Corporation.
In 2006, Kmart would move from its sprawling headquarters, by now just a shell of its former self, and pair with Sears at their massive Hoffman Estates, IL campus. That complex itself, was the replacement for Sears’ own headquarters, their namesake tower in downtown Chicago, IL.
The Kmart HQ was sold to Madison Marquette in December 2005, stripped of its artwork and office equipment, and was left vacant. Plans were drawn up to turn the site into a mixed use center with shops, a hotel, condos and office space. This never got off the ground, and the site was sold to Diamond Troy JV, LLC in 2006 for $40 million. They too, let the property sit, after first unveiling plans to turn the site into The Pavilions at Troy, to compliment the neighboring mall. The recession of 2008 killed those plans. Forbes, the owners of Somerset Collection, and that little finance magazine you may have heard of, bought the property in 2010 for $17.5 million.
All the while, the building’s namesake company continued to spiral out of existence as part of America’s Largest Liquidation sale. Both Kmart and Sears would close the majority of their stores by the close of the 2010s, with another bankruptcy occurring by 2018. Lampert, through his hedge fund dealings, would buy back Sears Holdings from bankruptcy, and leverage the vast real estate to basically purge both Kmart and Sears out of existence by way of his newly created venture, Transformco. This was nothing more than a real estate ploy, selling off closed stores and properties, whose land was more valuable than the brands themselves, by now. Michigan’s last Kmart, located in Marshall, would close by November 2021. The original that started it all, in Garden City, is now a vacant lot.
By November of 2023, demolition was started on the sprawling campus. It’s future remains uncertain, despite talks of Forbes having plans in the works. Most likely, a mixed use center, long planned for the site, will finally come to fruition. Time will tell, but we bid Fort Kresge adieu. As of press time, there are two Kmart stores left in operation in the continental US. One in Miami, FL and the other out on the far reaches of New York’s Long Island, in Bridgehampton. The rest are located on the U.S. Virgin Islands, and Guam.
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