Kmart relaunches Martha Stewart line

NEW YORK — Martha Stewart is touting her tie-up with Macy’s Inc. to sell a new line of home accessories this fall, but she’s also making an effort in her long-troubled relationship with Kmart.

After years of sagging sales and contract tussles, Kmart is relaunching its Martha Stewart Everyday home furnishings line for the first time in nearly a decade. The revamped line, slated for a formal launch next week, offers better-quality bed and bath linens at lower prices, executives say. A queen-size set of 500-thread-count sheets will have a regular price of $59.99, versus $79.99 for a 300-count set earlier this year.

Kmart’s relaunch, which overhauls 1,100 items, comes as Martha Stewart Living Omnimedia Inc. is rolling out to Macy’s a new proprietary line called Martha Stewart Collection, which spans 1,500 items including stainless-steel cookware, china and glassware, as well as towels, linens and bedding.

Kmart has posted mostly declining sales during the past few years as parent Sears Holdings Corp. has focused on cutting costs at stores rather than boosting sales. Earlier this year, Martha Stewart inventory at Kmart stores was slashed severely to make way for the new fall merchandise.

Kmart’s home-goods relaunch isn’t all about Martha, however. Its contract with Martha Stewart Living is set to expire in 2009, and this month Kmart is also introducing a new line of proprietary home goods called Abbey Hill. The new private brand features sheet sets at $29.99, and extra-thick, no-lint bath towels.

All of the new home merchandise will be presented with an eye toward helping customers better mix and match colors and patterns, executives say.