I think it would be way more impressive if they built a couple of brand-new, standalone stores. Sears or Kmart hasn't opened a full-size store since 2001. Of course this will never happen but I think the public perception may change for the better, even if it's a by a little, if brand-new, spiffy Sears and Kmart stores started popping up. People might think twice about Sears and Kmart closing up if new stores started opening around them. Like I said, this will never happen but it just goes to show that the lack of investment has caught up and the chickens are coming home to roost.
Opening a Kmart in an existing Sears store seems like a cheap and cheesy "quick fix". What's more appalling is that the same old, tired Sears hosting the Kmart store hasn't changed. This is what's supposed to be a "model store" but you can see abandoned resets, massive "holes" in aisles void of product and just a general all around mess.