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Stewart resignation revives customer loyalty

NEW YORK — Martha Stewart's resignation as a director and officer of Martha Stewart Living Omnimedia seems to have invigorated the Martha Stewart brand, according to research consultancy Brand Keys.

The consultancy said Stewart's consumer loyalty index score rose from a 64 to an 86 rating (base 100 points), a level it has not seen since June 2003.

Brand Keys, Inc. has tracked the Martha Stewart brand since 2002 when it was one of the strongest in America, with an index of 120 (baseline 100). Brand Keys' metrics correlate closely with brand equity value and profitability.

"The resignation of Ms. Stewart is a positive step for the brand," noted Robert Passikoff, president of Brand Keys, Inc. "While Ms. Stewart is certainly the creative force behind a category and the company, under the current circumstances distancing herself from the company is virtually the only way for the brand to prosper."

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