You’d Better Watch Out

When we were kids and the first back-to-school ads would appear before the summer was in full swing, my siblings and I would scramble over each other to turn off the TV. Yes, Virginia, this was back in the day, before remote controls. There are some kids who actually like shopping for a new pencil case or a crisp new, notebook (guilty as charged) but to be reminded of school in mid July? Most kids think that’s just wrong. But Christmas ads? Bring ‘em.

Some people consider it crass commercialism to advertise for Christmas too early. This year, advertisements started in early October, even before Halloween. Some advertisers, like Kmart, acknowledged just how early their ads were with references to having “just carved pumpkins”. An AdweekMedia poll found that most people thought it wasn’t appropriate to advertise for Christmas until after Halloween. But since Kmart’s ads tout their lay-away program, it makes sense to get people thinking about their holiday shopping plans early.

In fact, many will advertise earlier this year and have even increased their holiday ad spending. Advertisers realize that shoppers have embraced a new frugality but as retail sales are up slightly, they are vying for their share of consumer spending. Many advertisements will reference this new frugality as Kmart’s “Shop Smart” with lay-away ads do. Macy’s will reprise their “Yes, Virginia, There is a Santa Claus” campaign which seeks to put a human face on why we shop. Early spots focus on Macy’s legacy as the go-to place for Christmas shoppers, as depicted in the film classic, “Miracle on 34^th Street”. That movie is one of my traditions; I watch each year on Thanksgiving Day. As I baste the turkey, I smile at the opening scene which takes place on, you guessed it, Thanksgiving Day at the Macy’s annual parade, their “official” kick-off to the Christmas season. At least, that was the start date, back in the day. Today, Christmas ads start earlier but why not? As the song goes, we need a little Christmas, right this very minute.

KMarketing

Remember the kid in high school who wasn’t great looking or terribly smart or even the best athlete but was popular anyway? They usually had some indefinable quality or more prosaically, a car to go places; money to spend once you got there; or a basement to hang out in when there was no place to go. They were quiet but steady, dependable, and generous. For many, Kmart is proving to be the equivalent of that high school friend.

Same store sales at Kmart have risen. In the most recent quarter, they only had a dip of 2% compared to 4% dips at Target and Wal-Mart. They realized early on that they can’t compete with Wal-Mart on price or with Target for cachet. So they focused on value-added programs and promotions. They brought back their “Blue Light Specials”, limited time offers that hearken back to those times, not unlike today, when consumers wanted a bargain to justify their purchasing needs. They offered a lay-away plan during the past holiday season which they recently brought back and advertised for the Back-to-School season. Most significantly, they created “Smart Assist”, a program in test right now that offers unemployed customers an additional 20% off store brands for up to six months. If they roll it out to the chain, they will no doubt spend to advertise it as their media spend rose 13% last year. They’ve stepped up their print buy too with fall inserts due in issues of Glamour, Lucky, and Vogue.

Kmart has even been showcasing some of their sister company’s beloved brands in-store, such as Sears Kenmore, Craftsman, and Diehard. They also recently launched Kmart Design, a website that highlights how they’ve become more of a trend influence, even hosting a styling session with mommy bloggers at the recent annual BlogHer conference in Chicago. When it comes to marketing, they seem to be doing all the right things, in a quiet, steady, dependable way. Kmart is like that kid in high school. You may not have many places to go right now but you can always go to their place where you know you’ll get a good deal.