News Feature | September 12, 2013

With More Than 100 Days Until Christmas, Kmart Drops First Holiday Television Ad

Source: Retail Solutions Online
Sam Lewis

By Sam Lewis

Struggling retailer’s focus on free layaway could prove beneficial

In a rather bold move, Kmart has already aired the season’s first holiday ad. The ad — created by DraftFCB, which also created Kmart’s “Ship My Pants,” “Big Gas Savings,” and “Yo Mama” ads — aired on TV throughout Monday, September 9, and promoted Kmart’s layaway program. In the commercial, a gingerbread man sneaks up behind a lady working in an office, followed by a voice over “Don't let the holidays sneak up on you. Shop early with Kmart free layaway. Kmart. Get in, get more Christmas.”

Kmart beat last year’s holiday commercial frontrunner, Target, to the punch. October 7, 2012, brought Target’s first holiday TV ad, featuring Target’s dog mascot, Bull’s eye. The dog, which was larger than life in the ad, is trotting through streets covered in snow with a shopping bag in his mouth accompanied by a chipper jingle singing “Are You Ready?”

The early holiday commercial from Kmart was immediately met by complaints of consumers on the company’s Facebook page. Kmart has been showing gratitude, despite the negativity, thanking consumers for their interest and saying, “We're just really excited for the holidays and layaway!” Jonathan Symonds, exec VP-marketing at Ace Metrix, noted that, while it is necessary to show layaway ads early, it was “eye opening” that Kmart opened the holiday shopping season flood gates six to eight weeks earlier than normal. According to Ace Metrix, Kmart’s first holiday commercial last year aired on October 28.

Normally, retailers do not unveil TV ads for holiday campaigns until late October. That’s not to say that companies don’t spend money on advertising long in advance of the season, often through digital promotions along with social media. “When it comes to holiday messaging, a TV spot about layaway will certainly resonate with budget-conscious consumers,” says NRF spokeswoman, Kathy Grannis. “There are limited budgets today, and retailers are aware of that,” Grannis says. “Consumers are spending wisely, so reminding them about layaway is smart. It's not just about saying we've got great specials. It's about helping them with their holiday budgets.”

Data from the NRF shows that 12 percent of consumers begin holiday shopping, which accounts for $580 billion in sales, in summer months. September brings holiday shopping to 6 percent of consumers, October brings 20 percent of shoppers into the holiday spirit, with the remaining, and biggest percentages, in November and December.