KMART HIRES CAA FOR ENTERTAINMENT STRATEGIES

Troubled Retailer Gets Boost From Martha Stewart

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SAN FRANCISCO (AdAge.com) -- Kmart Corp., trying to fight its way out of Chapter 11 bankruptcy, hired Creative Artists Agency for entertainment-related marketing strategies and brand-building programs.

The company said today it hopes CAA will be able to help it develop a number of initiatives in film, TV, music and video games, which, in turn, will build consumer loyalty.

Martha Stewart
The move comes at

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a time when one key Kmart marketing partner, Martha Stewart, has upped her endorsement of the retailer.

In new spots for her lawn and garden summer line, Ms. Stewart invites viewers to shop at Kmart. She also is expected to appear in commercials as part of Kmart's "The Stuff of Life" campaign, directed by Spike Lee, from Omnicom Group's TBWA/Chiat/Day, New York.

The spots are running at the same time as other promotions, ranging from a radio spot blitz to individuals with billboards standing alongside highways.

Meanwhile, the retailer continues to close stores in a number of markets around the nation. As part of its turnaround, in March Kmart began to shutter 283 stores.

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