Validating its new strategy of using ‘fashion’ as its mark of distinction in the Canadian retail wars, Zellers’ launch of the Martha Stewart Everyday Home bed, bath and kitchen lines earlier this summer has been an unqualified success, according to company representatives.

At a recent Toronto press conference to unveil the retailer’s new Cherokee apparel brand, Zellers president and ceo George Heller said the Canadian discount chain has been even more successful with the Martha Stewart introduction on a per store basis than Kmart USA was with its launch in March 1997.

Supporting Heller’s statement, John Oliver, general merchandise manager responsible for Zellers’ home and housewares departments, says projections based on Zellers’ June and July sales of Martha Stewart products foresee $200 million in sales across the 350-store chain for a full year. By contrast, he says, Kmart USA made only an estimated (US)$500 million in sales across its 2,000 stores in its first year of offering the line.

Part of the difference, Oliver says, is that Canadians are buying more of the higher-priced Martha Stewart White and Silver label products than are u.s. consumers, who seem to prefer the line’s lower-priced Blue label items.

Peter Housley, vice-president of marketing for Zellers, says bed-and-bath has always been an important product category for mass merchants and department stores but that the recognition of the Martha Stewart name has contributed to the ready acceptance of the new brand.

Other consumer trends have helped, too, he says. ‘There’s been a trend toward cocooning for some time and while people on a budget won’t go out and buy new furniture, they will easily go out and buy new top of bed coordinates or table linens and feel like they’ve got a whole new thing happening.

At such a time, he adds, it doesn’t hurt to be offering consumers a brand name they recognize and trust at affordable prices. ‘Martha Stewart is more like specialty store quality at a mass merchant price point. It’s been a real coup for Zellers.’

Martha Stewart Everyday is currently available only in Zellers’ Ontario stores but will roll out to other provinces beginning in September, with the Quebec launch scheduled for next February.