Kmart rebranding Ohio store with K-Fresh concept

Kmart (NYSE:SHLD) will be rebranding some of its retail stores with the chain's new K-Fresh concept. A Kmart in Chillicothe, Ohio, will scale back its hours and its grocery offerings, converting from a super center to a smaller-format store.

Formerly open 24 hours a day, the location reopened this week with new hours as part of the K-Fresh conversion, reported the Chillicothe Gazette. The store has also pulled its butcher, bakery and deli departments. These types of fresh items will no longer be prepared on-site and will instead come to the store prepackaged.

The same spaces in the store will be rearranged or repurposed for stocking items. The infant and furniture sections of the store will be expanded.

The K-Fresh concept has been piloted at two stores, one in a suburb of Chicago and another in Hawaii. Kmart plans to convert a location in Uniontown, Pennsylvania, as its next move toward K-Fresh expansion.

Kmart joins a host of other big box retailers that have been switching their focus to building smaller-format stores in efforts to increase their footprints in urban markets. For example, Target (NYSE:TGT) announced earlier this month that it will open nine small-format stores in 2015, starting with one Express store in Chicago and two Express stores in the Washington, D.C., area. Similarly, Walmart (NYSE:WMT) announced this time last year that it would rev up expansion of all small-format stores, including the growth of the Neighborhood Market, Express and Walmart To Go brands.

For more:
-See this Chillicothe Gazette article

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Target to open 9 small-format stores

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