The Kmart in Collinsville will close its doors within the next three months.
According to the city's Community Development Office, the retailer has declined to renew its lease at 1101 Belt Line Road and will close its store after business on Sept. 7.
Sears Holdings corporate spokesman Howard Riefs on Wednesday said the Collinsville store will begin liquidating its inventory on June 22. He said the Collinsville store is one of many that the retailer has closed within the past few years.
"Store closures are part of a series of actions we're taking to reduce ongoing expenses, adjust our asset base, and accelerate the transformation of our business model," Riefs said in a statement. "These actions will better enable us to focus our investments on serving our customers and members through integrated retail at the store, online and in the home."
Reifs said none of Kmart's other metro-east stores in Belleville, Granite City and Alton have plans to close. A manager at the Belleville Kmart, located at 7230 Westfield Plaza Dr., told the News-Democrat that her store witnessed an increase in business after the Kmart at 6525 N. Illinois St. in Fairview Heights closed its doors in December 2012.
The Fairview Heights store opened in 1998 but declined to renew its lease after 14 years in town. The store and most of the adjoining shopping center has since been demolished and is currently being redeveloped into a new retail plaza, the $32 million Fairview City Centre. Tenants such as Office Max and Sports Authority have reopened and relocated there. Organic grocery store Fresh Thyme Farmers Market is under construction and will open there in the fall, and home furnishing retailer HomeGoods also plans to build at the shopping center.
The Collinsville Kmart employs 84, most of whom are part time and earn an hourly wage. Reifs said these employees will be eligible for severance and have an opportunity to apply for any open positions at any Kmart or Sears stores.
Kmart merged with Hoffman Estates-based Sears Holdings Corp. in 2004. However, the company has been struggling. In July 2012, the company announced that it would close 120 stores.
Contact reporter Will Buss at firstname.lastname@example.org or 239-2526.