Kmart Corp. and Martha Stewart Living Omnimedia Inc. signed a new merchandising agreement, giving the discount retailer exclusive rights to sell the Martha Stewart Everyday brand of home and garden products for another seven years.
The pact extends until 2008 the relationship between Kmart, the nation’s second-largest discount chain after Wal-Mart Stores Inc. (WMT), and Martha Stewart, the media and e-commerce company founded by the lifestyle entrepreneur. The agreement also offers conditional renewal until 2013.
Financial terms weren’t disclosed.
Kmart (KM) began selling Martha Stewart (MSO) products in 1997 starting with bedding and bath items, and the array of home and garden products has grown since then. Just last week, Kmart expanded its Martha Stewart Everyday Housewares line to include 314 products used to organize kitchens, pantries, laundry rooms and closets.
The companies said Thursday that they intend to further expand the number of products offered, with Kmart rolling out two new Everyday brand categories — crafts and holidays — for 2002.
Under the agreement, the Martha Stewart products will be available at 2,100 Kmart stores as well as the companies’ e-commerce sites.
Copyright (c) 2001 Dow Jones & Company, Inc.
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