Claim: Kmart has stores in operation in the U.S. Virgin Islands.

Kmart Corporation -LRB- sometimes stylized as K-Mart -RRB- is a chain of big box department stores headquartered in Hoffman Estates , Illinois , United States . The chain purchased Sears for $ 11 billion in 2005 , forming a new corporation under the name Sears Holdings Corporation . The Kmart name was incorporated in 1916 while the first store did n't open its doors until 1962 . At its peak in 2000 , Kmart operated 2,171 stores including 105 `` Super Center '' locations . For the 2005 fiscal year under the new company , the Kmart store count was at 1,416 with only 55 `` Super Center '' locations . Currently , the chain is operating 734 stores with only 1 `` Super Center '' location remaining -LRB- Store # 4939 in Warren , OH -RRB- . This number will decrease further due to the previously announced closings that will take place in Q1 2017 .   It operates stores in 49 states , Puerto Rico , the U.S. Virgin Islands , and Guam -LRB- which houses the world 's largest Kmart -RRB- . It also used to operate stores in Canada , Mexico , and Eastern Europe .   Kmart became known for its `` Blue Light Specials '' : they occurred at surprise moments when a store worker would light up a mobile police light and offer a discount in a specific department of the store , while announcing the discounted special over the store 's public address system . At the height of Kmart 's popularity , the phrase `` Attention Kmart shoppers ! '' entered into the American pop psyche , appearing in films and other media such as Troop Beverly Hills , Six Days Seven Nights , Rain Man , Beetlejuice , Madea Goes to Jail , and Dawn of the Dead .   Kmart 's world headquarters were located in Troy , Michigan , in Metro Detroit , but since the purchase of Sears , it has been relocated to Hoffman Estates , Illinois , a suburb of Chicago . Kmart also exists in Australia and New Zealand -LRB- see Kmart Australia -RRB- , although it now has no relation to the American stores except in name , after U.S. equity in the Australian business was purchased in the late 1970s .