The clueless Kmart announced today some new ads featuring among others Martha Stewart.

Kmart short on any innovative thinking is looking to minority communities trying to carve out a niche they feel they can compete in. Hence the "diversity" in their new ads. They are even introducing the new ads during the World Series. While that makes for good media attention I doubt it has much play with their target customer for those Martha Stewart sheets.

Time to revisit some previous thoughts on Kmart. From 5/07/2003.

I don't know any of the details of their situation. I do know that I don't know a single person who shops at any of the remaining Kmarts. If they don't come back with a radical new format and offering they simply won't make it. Half their market seems headed for Target and the other half is headed for Wal-Mart.

What Kmart should do:
Name Change - The Kmart name has failed. In the customers mind Kmart=bankruptcy. The must change their name as soon as possible. They must, however, develop their new persona before doing so.
Become the Merchandising Mechanism for Personality Brands - The new company should craft a new retailing concept that is tied to personalities. Building on their relationship with Martha Stewart, the company should develop marketing and merchandising strategies that are based upon successful personality brands. Martha Stewart, Oprah, Dr. Phil, Dr. Atkins, B. Smith, Suzy Orman, Ralph Loren and a host of others are building personality brands that all speak to some aspect of the American lifestyle. These brands use traditional and new media to communicate their messages. They also incorporate some degree of merchandising.
Create Community - Create a retail environment that is more than a traditional store. Create a club atmosphere where the swarms of the various personality brands can connect face to face with like minded individuals and lifestyle consultants(sales associates) through consultations, demonstrations, seminars, screenings, book clubs, lunch dates, birthday parties, and community group functions like PTA meetings, etc.
Create a "Third Place" - The concept of a third place that isn't home and it isn't work is prevalent in Asia where it often takes the form of an Internet café. Millions of young Asians utilize these third places to hang out and connect in person and virtually with others. The new company has the opportunity to become the chosen hangout for their customers. Provide cafes, restaurants, theatres, classrooms and lounges as part of the retail environment. Throughout it all provide computers and wi-fi connection to the Internet.
Charge a Membership - In order to create the impression of value, support the facilities, and command respectful conduct the company should charge an admission fee and offer annual memberships. In order for customers to understand the value of the experience offered by the company there should be a direct cost for them to have the experience. This is a concept between a health club membership and a CostCo or Sam's Club Card.
Partner Up - Don't go it alone. Partner with existing players to provide services outside your retailing background. Outsource the café, restaurant, bank, beauty salon, etc.
Embed in Local Communities - Leverage your new facilities to become the 21st century community center. Provide meeting space and support for local organizations and causes. Value community support across the country but act locally based on input from local members. Billy's cub scout meeting takes place at the same time Suzy's dance class meets giving Mom time to catch up on her E-mail, watch today's Martha Stewart Living and purchase the baking pans she saw on the show.

Too bad it'll never happen. The old dog is too old and set in their ways to make a run at such a radical forward thinking concept. Let's just sit back and watch as they close more and more stores.

Comments

[Paul W. Swansen]

I can't remember the last time I was I a KMart. The last time I was however I seem to remember how trashed the place looked,junk in the aisles etc.