Coordination key in domestics department - Kmart's domestics departments - Kmart Power Merchandising

Discount Store News, Feb 21, 1994

Coordination has become the rule rather than the exception in domestics, and Kmart has met this need with an aggressive merchandising strategy.

"In the older stores, Kmart carried different categories in different sections of the stores. In the new stores, they are making more endcaps and areas that coordinate different types of products so a customer doesn't have to go to other sections to find something that matches. The chain's image going forward is now translating in the newer stores; the customer wouldn't have understood this direction in the older stores," said Ron Gindi, sales manager, Best Brands.

"In the bath category they've implemented upscale fixturing, which pretty much follows along with their whole train of thought as far as getting to know who their customer is and doing a much better job of communicating with them," said Pat Mulvenna, vp, sales, Ex-Cell Home Fashions.

This change in strategy occurred last year when Kmart opened its store of the future in Auburn Hills, Mich., and the domestics department underwent the most revolutionary changes.

Now, a year later, Kmart is fine-tuning the area and successfully competing with Wal-Mart and Target.

"They are up there with the competition. They weren't in the past. At one time the old mighty dollar was the key, but now style and then price [in that order] are most important," said Gindi.

This strategy seems to be working, as 22% of consumers said they would shop at remodeled stores for domestics. In turn, only 12% said they would shop for domestics at the stores that hadn't been remodeled, according to a recent survey of 2,000 shoppers by Kmart.

Besides updating the stores, Kmart relies heavily on its own designer brands. The Martha Stewart name has gained a loyal following and Kmart features bedding vignettes with some of Stewart's latest designs prominently displayed with bold instore signage. The chain's other designer names, Louis Nicole and Gloria Vanderbilt, are also showcased in a similar way, with overhead signage and bold graphics that help draw customers into the domestics department.