Kmart Ending Relationship with GlobalHue

DETROIT — Kmart Corp. and GlobalHue are negotiating an end to their relationship, sources said

The Southfield, Mich.-based agency has worked with Kmart since 1997, first handling African American targeted efforts and then adding Hispanic duties in May 2001. Billings for Kmart’s multicultural efforts are estimated at $15 million.

GlobalHue executives declined comment.

Steve Feuling, Kmart executive vice president of marketing said the Troy, Mich.-based discount retailer had not made any announcement regarding a shift in agency responsibilities and declined comment “on rumors and speculation.”

The African-American and Hispanic ad duties are expected to shift to two undisclosed shops, according to sources. Those shops’ efforts will be overseen by Kmart lead agency TBWA\Chiat\Day in New York, sources said.

TBWA\C\D referred calls to the client. The agency handled both Kmart’s mainstream and multicultural holiday spots which broke Nov. 18.

In total, Kmart spent about $340 million on advertising in 2001, per CMR, and $195 million through the first eight months of 2002.