Retailers unwrap their holiday ad campaigns early

Oct 29, 2009 (Milwaukee Journal Sentinel - McClatchy-Tribune Information Services via COMTEX) -- KSS | Quote | Chart | News | PowerRating -- Before the jack-o'-lanterns are off the porch, Christmas ads will hit the airwaves, as retailers push the season to its earliest start ever.

Kohl's Corp. and other big chains will launch their holiday campaigns next week, trying to drum up interest in what retailers expect will be another dreary selling season.

"Halloween is the kickoff to the holiday season," said Richard Hastings, consumer strategist with Global Hunter Securities in New Orleans.

Kohl's will build on its "The More You Know, the More You Kohl's" campaign. The Menomonee Falls-based chain's first holiday TV spot will run Monday, and stores next weekend will begin staying open until midnight on Fridays and Saturdays.

"We read in our research that value is much more important than ever before," Kohl's Chief Executive Kevin Mansell said.

Kohl's is stepping up its promotions this season in an attempt to take market share from competitors. The company will offer nine more days when shoppers can earn $10 in-store credits for each $50 spent, and will allow an extra 19 days to redeem those credits, known as "Kohl's Cash."

Kohl's holiday kickoff sale is scheduled Nov. 11, however, a week later than last year and with four extra pages of "bonus buys."

Macy's, meanwhile, will launch its "Believe" holiday campaign Nov. 6 on national TV, with a new spot featuring actress/singer Queen Latifah. The campaign is a continuation of last year's Christmas ads, which were based on the "Yes Virginia, there is a Santa Claus" editorial in a New York paper in 1897.

Macy's again will ask children to mail letters to Santa in mailboxes at Macy's stores around the country and will donate $1 to the Make-A-Wish Foundation for each letter, up to $1 million.

The Kohl's campaign uses such taglines as "Count on Great Gifts, Count on Great Savings," and "Make Every Gift Count." The ads focus on specific ways to save at Kohl's by combining various promotions, and on the company's liberal return policy.

"We are trying to direct people to recognize that a value is not just about the price," Mansell said.

Kohl's will spend less on broadcast ads this year, but will get the same reach because of reduced pricing. The company will increase spending for online ads by 25%. In November and December, consumers who visit 30 major newspaper Web sites around the country, including JSOnline.com, will be able to browse and select Kohl's products without leaving the newspaper site when interacting with the Kohl's online ad.

Kohl's will introduce a men's holiday gift guide, mailing it to customers who buy men's items.

The company will continue to mail other gift guides to certain customers, depending on their purchase histories.

"Retailers are trying to entice people into their stores earlier, with early promotions," said Ellen Davis, vice president of the National Retail Federation. Davis said one-third of retailers will start promotions early this year.

The NRF expects industry sales to decline by 1% this year, which would be better than last year's 3.4% drop.

"Shoppers will focus on lower-priced items," Davis said in a media conference call this week.

Retailers are responding to the situation by promoting such items. Wal-Mart has announced a list of 100 toys priced at $10 or less, and Target is cutting prices on specific toys each week.

Kohl's will introduce a new in-store sign program this year to call attention to items by price -- $9.99, for example -- to help shoppers find things to fit budgets.

Kohl's is planning for a decline of 3% to 5% in same-store sales for the fourth quarter but has raised its profit expectation to $2.59 to $2.70 per share for the fiscal year.

Mansell said Kohl's is able to increase promotions and reduce profit margins because of the company's inventory management program and the increased percentage of private label and exclusive brands. The private brands have higher profit margins than national brand merchandise.

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