Sears Canada (Toronto) has announced a multi-year exclusive merchandising agreement with Martha Stewart Living Omnimedia Inc. (New York) for the Martha brand label merchandise in Canada, starting in summer 2003. Martha's current arrangement with Zellers Inc. will expire then.
Martha Stewart Everyday brand label collections in the bed and bath, housewares, gardening, textiles and seasonal product categories will be available at Sears Canada stores and via its catalog and web site. According to a Reuters report, Sears Canada's merchandising approach and multiple channels of distribution persuaded Martha Stewart to replace Zellers. “Sears Canada's retail strategy and diverse sales outlets mesh well with the future growth and development requirements of our brand label in Canada,” Stewart said.
In the U.S., Martha Stewart Everyday is distributed exclusively through bankrupt discounter Kmart Corp. (Troy, Mich.). The company has stated its intention to stand by Kmart, but it is allowed by contract to talk to other retailers in the event of bankruptcy.