Kmart “Extreme Makeover”


In late 2004, Kmart approved a plan to completely overhaul its retail stores across the country.  Internally referred to as the “Extreme Makeover,” Kmart planned to execute the remodel in stages, with a nine-store launch in spring 2005.  Kmart’s objectives were to generate awareness of the “new and improved” Kmart, drive traffic to the stores, and instill a feeling among citizens that Kmart is a positive presence in the community.  

Active Insight
Active Marketing Group developed a program that extended the store makeover theme into the community and selected charitable organizations to receive their own “makeovers.”  Working closely with local store managers, Active launched a program that employed “Strategic Philanthropy” - a way for the local Kmart stores to provide a sizeable donation to a charitable organization that needed a makeover of its own. This approach allowed Kmart to create positive PR, drive traffic to the store, and foster a sense of goodwill toward the brand throughout the community.  

Results:
Through this program, Kmart gave back in excess of $200,000 to its local communities, enabling a multitude of local improvement projects:  Renovation of a youth fitness center, installation of a new community park pavilion, refurbishment of a children’s room in the local library, and complete updating of a teen center in a low-income area.  

In turn, each Kmart store was able to demonstrate their commitment to the community, and generate goodwill among its citizens leading to increased patronage for years to come.

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