It's unlikely that anyone will see Martha Stewart walking around a Home Depot store wearing one of the chain's orange aprons any time soon. What consumers will find in the future is plenty of Martha Stewart Living merchandise in the chain's stores now that the two parties have signed a deal to have the celebrity design an exclusive line of closet organizers, décor items and outdoor furniture sets for the do-it-yourself retailer.
The deal between the two parties is said to be potentially bigger than Ms. Stewart's deal with Kmart for her Everyday line. That business relationship, which will end in January, was said to be worth upwards of $1 billion annually to Martha Stewart Omnimedia.
Howard Davidowitz, chairman of Davidowitz & Associates, told The Atlanta Journal-Constitution, "The most important thing at Kmart was Martha."
"Our partnership with Martha Stewart is a natural fit. For years both organizations have been the go-to destination for consumers seeking ideas and information regarding their home improvement projects," said Frank Blake, chairman & CEO, The Home Depot, in a press release. "Martha and her organization offer the best, most practical design ideas for customers and together we will offer unique products at affordable prices, along with enhanced know-how to help consumers complete any project."
The first products to launch from the Martha Stewart Living line will be outdoor items that will hit Home Depot stores in the U.S. in January 2010 and then rollout to Canada a month later. Outdoor items will include patio dining and other items priced from $399 to $1,999. Products in the home organization category will be in stores in February.
Home Depot's deal with Ms. Stewart is seen as giving it a leg up in its competitive battle with Lowe's. The number two home improvement chain is widely considered within retailing circles to be more female-friendly than Home Depot despite the chain's assertions that the perception does not match the reality in stores.
"Our goal is to get them to stay in the store longer and have more things to choose from," Gordy Erickson, senior vice president for Home Depot, told the Journal-Constitution.
Discussion Questions: What will the deal with Martha Stewart mean for Home Depot and its competitors in home improvement retailing? Is the Martha Stewart brand strong enough to change consumer perceptions about Home Depot?