Q & A: Kmart addresses apparel - Kmart - Kmart's apparel marketing plans - Brief Article

DSN Retailing Today, August 26, 2002

Will Joe Boxer punch up Kmart's apparel assortment? How is the retailer freshening up its Kathy Ireland and Jaclyn Smith brands? The man closest to these issues is Nick Just, Kmart's new senior vice president and general merchandise manager for apparel and jewelry. A 20-year Kmart veteran, he recently spoke about Kmart's plans with Apparel Merchandising.

Q: HAS KMART FOUND A WAY TO DIFFERENTIATE ITSELF AMIDST THE BIG THREE IN TERMS OF ITS APPAREL OFFERING?

A: We are focusing more than ever on our brands. They are the key to our future. With the launch of Joe Boxer, we hope to attract attention with a well-known brand that brings customers into our stores as a destination for apparel.

Q: WHAT KIND OF REVENUE DO YOU EXPECT FROM JOE BOXER?

A: We're seeing exceptional results, the brand is being very well accepted across all categories, including apparel. Consumers associate Joe Boxer with department stores, and now an expanded array of apparel and accessories is available at value prices ranging from $2.99 to $24.99. [According to Nicholas Graham, chief underpants officer of Joe Boxer, sell-throughs into the initial launch are 20 percent to 30 percent per week.]

Q: ARE THERE ANY CHANGES IN YOUR MARKETING POSITIONING AIMED AT BRINGING IN NEW SHOPPERS?

A: Kmart is looking to address the African-American consumer, using new and existing apparel brands. Our new advertising emphasizes Kmart as an exciting place for people of all backgrounds to shop for apparel, and our apparel reflects trends that satisfy these customers--like the tracksuit.

Q: THE SIGNAGE ACROSS THE STORE LOOKS INCREDIBLE FOR JOE BOXER, WITH INFLATABLE PVC "MR. LICKEY" SMILEY FACES SUSPENDED ABOVE THE FLOOR. HOW WILL THIS FOCUS IMPACT OVERALL APPAREL SALES?

A: I think marketing has done an incredible job backing up the Joe Boxer apparel launch, but continues to do an excellent job with long-standing brands, like Jaclyn Smith and Kathy Ireland, as well.

Q: HOW HAVE YOU POSITIONED THE JOE BOXER LINE?

A: The brand definitely fills a void in addressing young men's and juniors customers. However, early results already are showing that consumers' 87 percent brand recognition, as shown in a survey a few years back, is still true across all age groups.

Q. SINCE YOU'VE TAKEN THE REINS IN SOFT LINES, HAVE YOU MADE ANY CHANGES IN JACLYN SMITH OR KATHY IRELAND, TWO OF YOUR ORIGINAL FLAGSHIP APPAREL BRANDS?

A: Now both the Kathy Ireland and the Jaclyn Smith customer want a current fashion look, and we're reflecting this in present and upcoming designs. Kathy will be more like Banana Republic and Jaclyn Smith will be more like Ralph Lauren.

Q. WITH KMART'S CURRENT FOCUS ON EXCLUSIVE BRANDS, BRANDS AND MORE BRANDS--DO YOU FEEL LIKE YOU'VE COVERED EVERY CUSTOMER?

A: Joe Boxer definitely filled a gap in our apparel offering, but we're in talks with potential partners about some other major additions to further grow the department.