Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!americast.com!americast.com!americast-post Newsgroups: americast.ibd From: americast-post@AmeriCast.Com Organization: American Cybercasting Approved: americast-post@AmeriCast.com Subject: Executive Update Date: Thu, 19 Nov 92 13:26:44 EST Message-ID: <11.1992Nov19.132644@AmeriCast.com> 11/19/92 TITLE Executive Update #m#gm#m##m#sw#m#Attention Kmart Shoppers: Famed Blue Light May Go Retailer Will Test Coupon Machine As Alternative Way To Tout Spe- cials Reuters In Auburn Hills, Mich. Kmart Corp.'s flashing blue light, a beacon of shopping bargains for 30 years, could be disconnected as the giant retailer refurb- ishes its image to attract upscale customers. Joseph Antonini, chairman of the nation's second-largest retail chain, says Kmart is experimenting with a "blue-light coupon machine" located Mark- eting at the front of the store that allows customers to select their own savings on over a dozen products. But the coupon machine will not be equipped with the flashing blue light long identified with Kmart. "We're going to continue to have blue-light spe- cials," Antonini told reporters this week during a tour at Kmart's new 1993 prototype store. "We don't have a light, you just walk in, push a button and out comes a coupon, giving the special. It's something new that we're trying and that will re- place the flashing blue light," the Kmart executive said. An- tonini says the new device, which resembles an automatic cash machine, will be tested in the prototype store here. A final de- cision on dropping the old blue light will be made later. The discount retailer is in the midst of a $3 billion store renova- tion program that Antonini says is already boosting sales. On Monday, Kmart reported third-quarter earnings rose 8% from a year earlier. The company cited positive response to its store upgrad- ings. Antonini says he's optimistic that Kmart can increase sales 4% to 5% in the crucial holiday season. He says the company's renovation program is aimed at convincing the 180 mil- lion customers who shop at Kmart to buy more products than they do now. In the future, Antonini says the 30-year-old retailer will stress quality, price and convenience with less of a reli- ance on the roving blue light. The blue light, which actually started out red, was the brainchild of former Kmart Chairman Har- ry Cunningham, who died last week#m#cq#m#. Since its introduc- tion 30 years ago, the blue light has evolved into American mer- chandising legend, sending shoppers into a frenzy as they chased the light around the store after new bargains. When asked in a 1987 interview if he was ashamed about using the light to move slow-selling merchandise, Cunningham said, "I'm not ashamed of 'em. . . . They were just a sales gimmick at first, but they've slipped into the American culture now." But industry analysts say the once-popular blue light may be out of sync with Kmart's new image as it battles Wal-Mart Stores Inc. "In some of these nicer-looking stores, they're attempting to go for a more upscale image for the store," said one analyst who asked not to be iden- tified. But some Kmart shoppers say the company should keep the device because it has become part of Kmart's history. "I think the blue-light special is synonymous with Kmart," said Evelyn Bed- narsh, a longtime Kmart shopper and former employee. "I like the blue light. There's something about it that made you want to go see what was for sale. I think they should let a little bit of nostalgia remain." Kmart has been trying to move its image upscale over the last three years by revamping stores, offering more brand-name merchandise and widening the aisles. Antonini said the Auburn Hills store will be a model for over 200 Kmart renovations next year. The retailer has earmarked $3 billion for the project and expects to have half of its 2,391 stores renovat- ed by the end of the year. This article is copyright 1992 Investors Business Daily. Redis- tribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM