Does k-mart even exist anywhere anymore? Certainly none around here.
Actually in the east, KM's still a common name. Around Pittsburgh, and just around me in general, I have 2 within a 15 or 20 minute drive... 3 if you cound the Sears Grand at the mall too which has a toy department very similar to any K-Mart.
Of late, KM's have been getting wave 4 and 5 in actually, but they charge more usually so, like KB toys, they're off your radar till a sale.
I found ROTS figures there first though, as did most people who have KM's near them, long before any other retailer put them out. I think I even posted a story on it on our front page at the time. And the Cantina sets they had languished on the shelves forever till heavy markdowns. Same with their battlepacks like the Jedi Temple Assault.
They were also one of the only stores around me that got the Prequal tins in, in any quantity.
Like I said though, KM's big in the North/East part of the country still, not in the South or West though. Bear in mind though that out here Target's and WM's are usually more spread out as well, in most areas, and thus the competition is not quite what other areas have. I have to drive a minimum 20 minutes to get to any WM, and 40 or so to get to Target.