In the late 1980s, Kmart tried something new with a concept called American Fare. Imagine a grocery store that felt more like a fun trip to the mall. You could shop for groceries and enjoy fast food like Taco Bell or TCBY frozen yogurt all in one giant space. The first store was massive, about 244,000 square feet, much larger than today’s Walmart Supercenters.
American Fare partnered with Bruno’s, a well-known supermarket in Alabama. This store wasn’t just about groceries; it had a food court, a bank, a pharmacy, and even a hair salon. People could hunt for ingredients to make dinner while grabbing a hot meal. It was designed to be like the European hypermarkets, blending everyday shopping with a variety of services.
American Fare’s food court was a big hit, featuring brands popular among families. There was a bakery that made everything from donuts to cupcakes. It was, at that point, the largest scratch bakery in the U.S. with over 80 registers to keep the lines moving. The excitement didn’t last long, though. Although Kmart opened two more stores in Charlotte and Jackson by 1990, the concept quickly struggled. The partnership with Bruno’s ended in 1992, and by 1994, all American Fare stores closed.
In comparison, other retailers have had more success with similar ideas. For instance, companies like Costco have thrived with their food courts, turning grocery shopping into a social experience.
Experts often analyze these failures for insights into consumer preferences. They note that shoppers today want convenience and a mix of services, but they also expect quality. This is reflected in a study showing that over 70% of shoppers prefer grocery stores that offer prepared meal options alongside traditional products.
Social media trends also show a growing interest in unique shopping experiences. People share their finds and favorite foods, making grocery shopping more than just buying items; it’s about enjoyment.
Kmart’s American Fare was a bold attempt that paved the way for today’s retail spaces. Though it didn’t last, it inspired future innovations in grocery shopping. More information about grocery store trends can be found in sources like this recent report.

