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Kmart Rehoboth Beach, DE Video Tour Towards the middle to end of the 2010's, Kmart started to lease out some of their stores to other retailers. The strategy was smart: Cut down on the unwanted and unneeded floor space, lease out that space to another retailer, get monthly income from that, and remodel/upgrade the "new" format for the Kmart store. This is what DID happen in Rehoboth Beach, DE. This concept was supposed to go to SEVERAL stores but didn't happen to most. When I visited, the store