About 3.8 percent of Kmart stores closed in 2014. As of 2013, Kmart had 1,221 department stores across the United States, Guam, Puerto Rico and the U.S. Virgin Islands. However, it closed 46 stores by the end of 2014.
Kmart is a wholly owned subsidiary of Sears Holdings Corporation, which has been beset by financial problems as its Sears and Kmart stores continue to underperform in the face of a shrinking customer base and stiff competition from Wal-Mart, Target and online retailers such as Amazon. Fitch downgraded Sears Holdings close to default status in 2014 and predicted it may not have enough cash to continue operations beyond 2016. Closing the stores would stem its losses and conserve cash. However, as of August 2015, revenues from its department stores continue to fall.