Kmart (often spelle as "K-Mart") is a chain of department stores in the United States, Puerto Rico, the U.S. Virgin Islands, and Guam. The chain merged with Sears in 2005, creating the Sears Holdings Corporation. Kmart also exists in Australia and New Zealand (see Kmart Australia), although it now shares no current relation with the American stores except in name after US equity in the Australian business was purchased in the late 1970s. It is the third biggest discount store chain in the world, behind Wal-Mart and Target.