KMART SHIFTS MULTICULTURAL WORK TO OTHER AGENCIES

Chisholm-Mingo Group and Cultura Replace GlobalHue

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SAN FRANCISCO (AdAge.com) -- Kmart Corp. has moved its multicultural marketing assignments to two independent shops, an executive familiar with the situation said.

Chisholm-Mingo Group, New York, has picked up the struggling retailer's African-American advertising, and Cultura, Dallas, was awarded Hispanic marketing.

GlobalHue was incumbent
The accounts previously were with GlobalHue, Southfield, Mich., Kmart's agency since 1997. Don Coleman, chairman of GlobalHue, declined comment.

GlobalHue, which is

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49% owned by Interpublic Group of Cos., at one point produced a general marketing advertising campaign for Kmart using dancing spotlights to highlight the "Blue Light Always" price war against rival Wal-Mart's smiley face "Always low prices. Always" theme.

Owed $3.3 million
According to bankruptcy court filings, Kmart was said to owe GlobalHue $3.3 million. It was not known at press time whether that amount has increased, decreased or been paid off, although an executive familiar with the situation said the amount may be higher.

Kmart's general market agency is Omnicom Group's TBWA/Chiat/Day, New York. Kmart also works with Omnicom sibling Arnell Group, New York, on a store redesign project. Mr. Arnell also handles advertising for Kmart's Martha Stewart brand.

Kmart spokesman Dave Karraker said the struggling discount chain "has not made any announcement regarding any changes in our agencies," and added the retailer does "not comment on rumors or speculation."

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Jean Halliday contributed to this report.

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