The nations declining discount retailer has decided to not carry Blu-ray players, citing the price. They say that they aren't choosing sides and that no one's bought an end-cap, but they feel that Blu-ray players are more focused on home theater enthusiasts and they recognize that those people don't shop for the latest HT gear at Kmart. We don't get into a Kmart much, but the last time we checked the only HD movie gear they had on the shelves was an Xbox360 HD DVD add-on drive hidden amongst the rest of the 360 accessories.
Update: Kmart reaffirms this to High-Def Digest saying that "Kmart intends to support both the HD DVD and Blu-ray platforms, and has no plans to support either platform exclusively." We should've also mentioned that PS3s can be found on Kmart's shelves.