Discount retailer Kmart will launch its first new advertising campaign this weekend since emerging from bankruptcy, and style guru Martha Stewart’s collection will get prominent play despite her high-profile legal woes.
KMART MANAGEMENT CORP. said Thursday the new campaign will debut during the second game of Major League Baseball’s World Series on Oct. 19.
The retailer recently switched advertising agencies, handing the account to Grey Global Group after TBWAChiatDay of the Omnicom Group ended its three-year relationship with Kmart in late July.
The spots will feature Martha Stewart Everyday, Joe Boxer, Thalia Sodi, Route 66 and Sesame Street exclusive brands, which Kmart is counting on to bring customers back into stores.
Kmart has said the Martha Stewart products are selling well, even after Stewart was charged with securities fraud and obstruction of justice in connection with stock trades of a company run by a friend.
Kmart filed the largest-ever retailer bankruptcy in January 2002 after a poor holiday shopping season compounded financial problems. It emerged from Chapter 11 earlier this year with a new management team, financial backers and far less debt.
But analysts still question whether Kmart can win back customers it lost during the bankruptcy proceedings, and compete in a sector dominated by Wal-Mart Stores Inc.
Kmart, which has kept a low profile since exiting bankruptcy, said the advertising campaign would be ”specifically urban.” The retailer has been targeting black and Latino shoppers in hopes of finding a niche in the crowded discounting sector.
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