Martha to seek mass market partners after Kmart

New York – Addressing her second analyst conference in as many days, Martha Stewart Living Omnimedia’s chief elaborated a bit yesterday on her March 10 assertion the brand would live on in the mass market after its exclusive contract with Kmart expires in January 2010.


“Right now we do not believe Kmart is our likely partner going forward,” president and ceo Susan Lyne said during the Bank of America 2008 Consumer Conference here. “However, as of January 2010 we can be in any other mass retailer,” and the company is free to pursue new deals now, she added.


Lyne noted that its other channel exclusives are with first-in-class retailers (Lowe’s, Macy’s and Costco) and indicated the company believes it will receive more floor space and better promotion if it signs another exclusive in the mass market.


She did caution against expecting another Kmart-sized contract, which spans multiple product categories and in its heyday approached $1 billion in annual sales.


“That was a landmark deal,” she said of the Kmart agreement, noting it was the first of its kind.


As for a new mass market partner, “What is important for us is to be with someone who is investing in their business,” she said.


Although Kmart’s obligations have begun winding down, the retailer still accounts for 80% of Omnimedia’s licensing revenues, cfo Howard Hochhauser told the audience. As Kmart’s minimums fall off, that revenue stream will decline from $65 million to about $20 million, he added.

Home & Textiles Today Staff | News & Commentary

 Home Textiles Today is the market-leading brand covering the home and textiles markets, offering a comprehensive package of print and online products. Home & Textiles Today provides industry news, product trends and introductions, exclusive industry research, consumer data, store operations solutions, trade show news and much more.

Featured Video

  • Live From New York: Fashion Comes Across the Pond

    Camera Icon More Videos

Subscribe to
Home & Textiles Today eDaily
Receive the news you need to know about the trends in the industry delivered right to your inbox.


HTT Cover October 2017

See the October 2017 issue of Home & Textiles Today. In this issue, we look at the Top 25 Online Retailers.  H&TT's exclusive annual ranking of the biggest online sellers of home textiles finds that while pure play etailers continue to fly, bricks & clicks are digging into omnichannel. See details!