Blue Light Special in Aisle Four

How in the world could KMart, a company whose financial troubles were widespread and well known, purchase Sears, one of America's largest retail chains?

That was the question many folks had when the deal was anounced last year.

Many analysts speculated the deal had more to do with real estate than it did with corporate synergy. That Sears coveted the off-mall real estate and that KMart was looking at some sears locations in smaller shopping malls across the country.

That take would appear to have been correct.

Four Wisconsin Kmart stores are among 14 in the United States that will be turned into Sears Grand stores by May. The stores are in Menomonee Falls, West Bend, Oshkosh and West Baraboo.

"These are the next wave of the off-mall format," said Chris Brathwaite, spokesman for Sears Holdings Inc., which operates both Kmart and Sears stores.

Since Kmart Corp. bought Sears, Roebuck and Co. last year, 50 Kmart locations around the U.S. have been changed to Sears Essentials stores, a sort of hybrid of both formats, but with Sears brands. There are no Sears Essentials stores in Wisconsin.

Last week, Sears said it was dropping the Sears Essentials format in favor of Sears Grand, a large-scale off-mall format that Sears introduced at just a few locations before the merger.

KMart couldn't keep up with Wal-Mart's supply chain management systems. Their products weren't as low cost or as diverse as the Arkansas-based retail behemoth. I have my doubts about the long-term success of the chain, but would imagine that Sears will be able to survive, thanks in part to the new off-mall locations.

I can't remember the last time I went to KMart.