Kmart
Facing A Recession Head-on

Situation

FCB had won the Kmart business and spent a good portion of the first year of the relationship working to better understand the retailers data, uncovering insight into who their shopper was, common basket/aisle combinations, which competitors their customers shopped, etc. In addition, we spent time understanding their shoppers mindset and what really mattered to her. One thing became very clear: this was a woman who would do anything for her family, regardless of her financial situation. 

As the financial crisis of 2007 came to bear, one question surfaced: how would this largely credit-challenged, cash-based customer make Christmas happen for her family in the face of a recession?

Solution

While most retailers had set their layaway programs aside, Kmart continued to offer the service but few shoppers knew of it or how it worked. We reintroduced layaway to the market, helping shoppers know that they could buy what they needed to make the holiday season successful, in a fiscally responsible way, given that credit cards were largely unavailable to this audience. With Kmart Layaway, shoppers could choose their items, put money down, and then pay the balance over a period of weeks leading up to the holidays.

Creative 

Reintroducing Layaway resulted in a 194% sales increase in its first year and an average basket 540% larger than the average transaction. Target, Walmart and other retailers quickly followed suit and reintroduced their Layaway service.

Seth’s Role

Brand strategist on Kmart at FCB Chicago