Dying retail icon will close its final full-size American store in coming weeks

Former retail giant Kmart will close the doors on its last full-size American store in the coming weeks.

The department store chain has operated for 125 years, selling products ranging from from clothes and appliances to hardware and electronics.

The store's parent company filed for Chapter 11 bankruptcy in October 2018 and had 202 stores sold to Transform Holdco, with the rest liquidated. Eventually only two stores remained in the United States.

The Kmart in Bridgehampton, New York will permanently close on October 20 after 25 years in operation, an employee said .

Occupying 89,935 square feet, Kmart is the largest big-box discount store in the Hamptons .

A smaller Kmart store in Miami remains open, but operates more as a convenience store.

Kmart has gradually been closing its stores since it merged with Sears in 2005 under the direction of hedge-fund CEO Eddie Lampert. The store's parent company, Sears Holdings, filed for Chapter 11 bankruptcy in 2018.

Department stores have struggled to adapt to the changing consumer landscape.

Problems such as massive debt and inefficient operations were compounded by the COVID-19 pandemic, speeding up the decline of several retailers that struggled to maintain their customers and their changing preferences, CB Insights reported.

With people electing to shop online because of the convenience of having a product delivered to their doorstep, it became harder for companies to compete for customers.

Stores like Sears, Kmart, Borders Books and Music, Toys R Us, Sports Authority, Lord & Taylor and Bed Bath & Beyond all struggled to adjust.

Kmart's store in Hyannis, Massachusetts closed in 2021. It continues to operate outside the United States in the US Virgin Island and Guam.

The announcement comes weeks after discount home goods retailer Big Lots filed for bankruptcy, raising questions over the future of its 1,400 stores.