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Kmart Corporation (NYSE: KM) today unveiled its holiday marketing campaign, "Get More Gifts, Spread More Cheer." The comprehensive plan includes broadcast and weekly newspaper insert print advertising, in-store promotions and community grass-roots initiatives which run throughout the holiday season. The program kicks off with national television commercials which begin airing Sunday, Nov. 17.

Kmart will focus on driving traffic through a multi-faceted marketing campaign featuring special in-store events and giveaways, advertising that supports the Company's key promotional events and exclusive brands in addition to continued outreach to Kmart's multicultural customers. The Company will target those loyal consumers who already shop Kmart stores, in an effort to increase frequency of store visits, the number of items in each basket and preference for Kmart as their first-choice retail destination.

"We want Kmart to be the Holiday destination for high-quality, affordable gifts," said Steven Feuling, senior vice president of marketing, Kmart Corporation. "With its roster of exclusive brands, great promotions of the season's most sought after product and exciting in-store events, shoppers will certainly see that they get so much more this Holiday season at Kmart."

Advertising

Television commercials and a recently redesigned weekly advertising circular will focus on driving traffic and sales by featuring the hottest gift ideas and product categories of the season, including electronics, toys and jewelry. To be seen on national cable and network outlets, the 15- and 30- second commercials will also highlight in-store sales events and promotions.

In-Store Events

Santa will arrive at all Kmart stores on Nov. 23 and will have a special toy surprise for the first 150 children who come to see him at each store. Santa will bring Mom and Dad a present through special discounts via scratch off manufacturer's instant coupons. The day after Thanksgiving, the first 300 customers at each store that make a purchase will receive a complimentary copy of the Martha Stewart Holiday Baking Issue. To generate even more excitement in-store and online at Kmart.com , the Company will host a series of promotional events designed around major sales, entertainment releases and holiday occasions throughout the season.

Exclusive Brands

Kmart will showcase its high-quality exclusive brands as a key point of differentiation from its competition this holiday season. In addition to Jaclyn Smith庐, Disney庐, Sesame Street庐 and Route 66庐, Kmart's recently re-designed weekly advertising circular and television commercials will highlight the company's newest offerings from Martha Stewart Everyday庐 and JOE BOXER庐.

This year marks the first time Kmart's popular Martha Stewart Everyday product categories include holiday items. The Martha Stewart Everyday festive holiday home decorations, tabletop and tree trimming items are featured in television commercials that run from Nov. 10 through the week of Nov. 24.

A Martha Stewart Everyday Holiday advertising insert runs the week of Nov. 17 with a special pullout section in the Sunday circular. Additionally, starting Nov. 17, customers who purchase $25 or more of any Martha Stewart Everyday Holiday product will receive a free commemorative holiday ornament while supplies last.

Fans of the dancing man from Kmart's recent JOE BOXER commercials are definitely on the Company's gift list this holiday. Known for the "JOE BOXER Boogie" commercials from this fall, Vaughn Lowery makes his return with more unique dance steps in holiday commercials that reflect the brand's fun, irreverent style. JOE BOXER commercials will run from Nov. 17 to Dec. 22. Additionally, the commercials will be shown in movie theaters nationwide.

Multicultural Marketing

With a nearly 40-percent multicultural shopping base, Kmart will continue its outreach to this important, growing market. Kmart recently became the first national discount chain to translate its weekly advertising circular into Spanish, in addition to producing a monthly four-page Spanish-lifestyle supplement, La Vida. Again this holiday, Kmart will produce dedicated Spanish-language television commercials, which run on national outlets from Nov. 24 to the week of Dec. 22.

Grass Roots Initiatives

Kmart will continue its tradition of holiday community outreach by sponsoring the U.S. Marine Corps Reserve Toys for Tots program and the Salvation Army Bell Ringer program nationwide. This is Kmart's second year as sponsor of Toys for Tots. Last year, Salvation Army Bell Ringers collected a total of more than $7.5 million outside of Kmart stores nationwide.

Kmart Corporation is a mass merchandising company that serves America with more than 1,800 Kmart and Kmart SuperCenter retail outlets. Kmart in 2001 had sales of $36 billion.

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SOURCE: Kmart Corporation

CONTACT: Kmart Media Relations, +1-248-463-1021

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