Dive Brief:
- Kmart is first retail chain to launch a holiday campaign this year, with an ad that promotes layaway by pointing out that it’s “Ridiculous” to start thinking about holiday shopping—or is it?
- Kmart bought more than $675,000 in media time for its ad last week, according to Kantar Media, running it on at 16 television networks and in nationally syndicated programs.
- This is the second year in a row that Kmart has launched the holiday advertising season; Home Depot was first to the airwaves in 2013.
Dive Insight:
Kmart is the first with a holiday ad this year, “Ridiculous,” which subtly ridicules the idea that it’s too soon to think about seasonal shopping. Featuring a spokeperson walking aisles festooned with holiday displays, the ad promotes the chain’s no-money-down layaway and leasing program as a “ridiculously awesome” way to get ahead on holiday shopping.
Since layaway contracts can take 12 weeks for a buyer to pay off and take delivery, the retailer indicated, it isn’t ridiculous to start planning holiday shopping in September. Last year, Kmart was first out of the gate with the similar “Not a Christmas Ad,” which also featured Kmart Kelly talking tongue-in-cheek about layaway purchases for a hypothetical “event in late December” in which one’s “entire family is having a birthday on the same day.”
In spite of cheeky spots such as these and 2013’s viral “Ship Your Pants”, Kmart has continued to experience sluggish sales. A division of Sears Holdings, the discount chain reported a decrease in same-store sales of 6.8% in the second quarter of 2015. Layaways—which take in revenue with little risk to the merchant—could help Kmart get the jump on a better third quarter.
