By Jim Mimiaga

Kmart Corporation has decided to pull out of the retail market in Cortez and will close its doors here on Jan. 26, management confirmed yesterday.

"My superiors informed me on Friday that we will close," said general manager Jackie DeRosa. "It is a very difficult time right now for the employees, and it is also bad for consumers in Cortez because it means there will be less retail competition here now."

More than 30 employees will be out of work, although they have the option to transfer to stores in Durango or Farmington. That is not likely, DeRosa said, because it is simply not practical to commute that far.

"Our employees and their families live here and have relied on local employment. It is not really realistic to take on another position that far away without moving," she said. "It is a real sad mood around here."

The 40,000 square-foot, no frills building, is one of hundreds built in the 1970s during Kmart’s heyday. The retail giant has been upgrading and remodeling most of them, DeRosa said, in order to better compete with rival discount stores such as Wal-Mart and Target.

By 1998, Kmart had revitalized most of their 2,160 stores into what are called Big Kmarts, which include wider aisles, a food pantry and more merchandise. Others were closed down.

To keep pace with gigantic retail stores such as Super Wal-Mart, the company plans to convert 575 of its stores into what it calls Super Kmarts. The improved stores, of which 102 are completed, offer more merchandise, increased shopping space and a full-size grocery.

Kmart leases its building in Cortez, but would not say for how long, or what company might sublet it.

The closure of the 21-year old store will be felt economically in Cortez.

"It will be a loss in (sales taxes) for the city," said Kathy Moss, finance director for Cortez. "I can say that they are one of the top ten contributors."

DeRosa emphasized that the decision to close was not because of a Super Wal-Mart opening nearly next door.