Kmart ads to feature pre-trial Martha Stewart

By Theresa Howard
USA Today

NEW YORK — As the critical holiday shopping season nears, Kmart will bring back the face of design diva Martha Stewart in TV ads rolling out Saturday during World Series programming.

In three ads, Stewart promotes her Everyday line, a Kmart exclusive and still among its best sellers. She goes to trial in January on securities charges, but she is smiling in the ad, surrounded by Everyday sheets and towels in a Kmart store. In one ad, she also signs the letter "K" and says, "It's in the K."

The goal of the first Kmart brand ads since its emergence from bankruptcy protection in May is to promote its exclusive brands. Along with Stewart, the ads feature dancer Vaughn Lowery for Joe Boxer and Latin singer Thalia for her namesake brand.

"We had a strong need, emerging from bankruptcy, to drive customers into stores," says Karen Austin, Kmart's chief marketing officer.

The holiday season is critical for the chain's recovery. Same-store sales were down 5.4 percent in the second quarter vs. last year, while retailing overall grew 3.1 percent, according to the National Retail Federation.

But one marketing expert says that using Stewart to promote Everyday is a big risk.

"Both brands are on shaky ground. And her brand has been very polarizing over the past 18 months. People who love her, love her, and people who hate her, hate her. There's very little middle ground," says Peter Montoya, a branding expert and author of "The Brand Called You."

The campaign, by Kmart's new ad agency, Grey Worldwide, differs from previous ads that highlighted individual brands and played down the Kmart name while the chain was in bankruptcy court.

"Rather than promoting brands ... this is about Kmart having great-quality brands," says Hal Fass, Grey executive vice president.

The new ads, set to a remake of the song "Right Here Right Now," feature Stewart, Lowery and Thalia in stores with shoppers dancing and playing. They have a multicultural cast to reach a "new America," Austin says.

The early-season ads are to set the stage for holiday-specific ads next month that also are likely to feature Stewart.

"We wanted to launch now, before November and December, to break away from that clutter," Austin says.