Kmart is striving to develop its urban business as a possible point of differentiation between itself and its competitors, reports Brandweek.com. The company is using the Dan Coleman Agency (Detroit) to devise a multi-cultural strategy.
“Latino, African American, Native American and Asian shoppers account for 40 percent of the dollars spent in Kmart stores,” said Kmart chairman James Adamson. “We need to address that [primarily urban] market. They have shown to be loyal customers.”
Adamson noted that the urban development plan also entails reducing capital expenditures, shuttering unprofitable stores, reducing unprofitable merchandise and hiring and retaining employees. A customer appreciation campaign, thanking shoppers who “stuck by the retailer during its toughest times,” is also in the works for later this year.