Kmart sells Everyday on Web; Internet to bring Martha Stewart line to everyone

Discount Store News, March 3, 1997 by Richard Halverson

TROY, MICH -- In the ballyhoo over the "official" launch of its new brand strategy March 1, what went relatively unnoticed is that Kmart tiptoed into the world of cyber retailing by putting its Martha Stewart bed and bath brand for sale on its Web site at www.kmart.com.

In another facet of its brand strategy, Kmart launched a mail order operation for stores too small to carry all 600 skus of the Martha Stewart line, called Everyday. An undetermined number of smaller Kmart stores will carry only about 75% of the whole assortment but even they will offer the complete line through mail order. Although nearly 300 Kmart stores began stocking shelves with merchandise last month, by yearend the program will have rolled out to only one-third of the chain. Hence the need for on-line shopping and mail order so all Kmart customers will be able to buy in some way each Everyday sku.

Kmart is disclosing little information about its on-line retailing ambitions, but did say it is planning to add future merchandise depending on how well the Martha Stewart products do. "It's a good way to get your foot in the door," spokesman Steve Pagnani said.

Kmart can only guess at how well on-line sales will do, said Steve Ryman, divisional vp, soft home.

Cyber shoppers will pay what Kmart describes as a "modest" shipping and handling charge for the merchandise purchased on line. Shoppers have two payment options: either tender a credit card number on line or call an 800 number.

Mail order purchasers also must pay shipping and handling. Kmart probably won't take a markup on shipping fees, Pagnani said.

Ryman told DSN that Kmart is drafting agreements with fulfillment partners to handle on-line and mail order purchases.

Moreover, Kmart began a $10 million television and blitz Feb. 27 that focuses on the Everyday brand, rather than an institutional promotion of Kmart itself.

In a major merchandising thrust, Kmart is building a 4,500-sq.-ft. Martha Stewart store-within-a-store in a program that will take until 2000 to rollout chainwide. In the first stage, 290 stores opened the Everyday shops March 1 and about 700 will have them by the end of the year. Most of the rest of the 2,134 stores will get them within the next three years. A few smaller stores won't get the special shop treatment.

Only 487 of Kmart's largest stores will carry all 222 skus in 19 colorways of the White line of Everyday, Ryman said. Going down the store-size scale, 880 units will carry 207 skus in 18 colorways; 734 will stock 181 skus in 17 colorways; and 40 will stock 130 skus in 13 colorways.

The new Martha Stewart shops feature display accents that reflect her touch, such as beaded wainscot paneling, crown mouldings and special signage. How-to videos will show Stewart helping customers coordinate their selections by "sharing decorating advice. product features and useful information about care and styling."

In addition, Martha Stewart "managers" will be on duty to "personally service shoppers," Kmart president Warren Flick said when he announced details about the partnership two weeks ago.

House paint, another aspect of the Martha Stewart brand program, will roll out to all stores by May 1. In dedicated portions of paint departments, Kmart will offer a 400-sku line of Everyday Colors paint and wallpaper that Stewart developed in a joint venture with Sherwin-Williams, supplier of Dutch Boy paint to Kmart.

The Everyday Colors line offers 256 custom-mixed hues that coordinate with the Stewart Everyday collection of towels, sheets, comforters and pillows.

In addition to paint chips that suggest complementary colors, the Everyday Colors display will offer a free 28-page guide on how to paint and will include Stewart's decorating advice. Latex-based house paint starts at $14.99 a gallon.

The paint line also includes 12 colors of latex garden paint, in quarts and spray cans, for outdoor furniture.

Kmart doesn't hold an exclusive on Everyday Colors paint, said Sharon Patrick, chief executive officer of Martha Stewart Living Omnimedia, and Sherwin-Williams is free to offer it to other retailers, such as its own paint specialty stores.

On Feb. 27, Kmart unleashed a $10 million advertising blitz for Everyday, including 30- and 60-second TV spots and two-page ad spreads in magazines such as House Beautiful, Country Living, Family Circle, Better Homes & Gardens, McCall's and Woman's Day.

As DSN reported Feb. 17, the Everyday bed & bath line consists of two grades, a blue line and a white, upscale line of sheets, pillows, towels and comforters. Coordinated bath rugs, shower curtains, toothbrush holders, soap dishes and drinking cups, thermal cotton blankets and bed pads also are part of the collection.

In the blue line, made by WestPoint Stevens, a sheet set sells for $12.99 for twin and $39.99 for king. Comforters range from $19.29 for twin to $29.99 for queen or king size.

The upscale line from Springs Performance Industries starts at $5.99 for a single twin sheet and ranges to $21.99 for a queen or king. Reversible comforters start at $39.99 for twin and range to $64.99 for queen or king.