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Kmart's Sticky Bricks

Publication: Retail Merchandiser
Date:Sunday, October 1 2000
Forget basic "bricks and clicks." Kmart and its Internet access service and sales arm, BlueLight.com, are going for "sticky bricks"—their term for a new level of on- and offline shopping integration that executives believe will turn more Kmart shoppers into BlueLight.com customers.

Beginning this fall, BlueLight.com has redesigned its shopping site with more than half a million products and improved search functions. "The product expansion is a huge rollout," says Dave Karraker, director of corporate communications for BlueLight.com, which was launched on Dec. 15 last year. "We have enhanced Martha Stewart items, some new branded items like Sesame Street, Jaclyn Smith apparel, and added services like Kodak Photo."

BlueLight.com also plans to reach Kmart's 30 million weekly customers with an enhanced in-store Internet presence. "By early November, we will have more than 1,100 in-store Internet kiosks, which will allow customers to shop at BlueLight at the same time they're shopping in Kmart," maintains Karraker.

"We don't actually care if customers shop online or shop at a Kmart," he adds. "We just want our customers to know that we're fully integrated now, and they can do things like buy something online and return it in-store if they have to. We're taking our e-commerce business model to the next step."

BlueLight.com and Kmart are so confident in the new model that they project next year's sales will reach $100 million, says BlueLight.com's president and chief executive officer Mark Goldstein. By year end, he anticipates signing on six million subscribers for BlueLight.com's free Internet service. Recently, the subscriber base surpassed four million, averaging 20,000 new subscribers daily.

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