• by John Gaffney , February 3, 2003

Don’t look now, but Kmart is taking the free-standing newspaper insert to a new level. On Sunday the financially troubled mass retailer announced the first edition of Urban Direct, an entertainment and lifestyle newspaper supplement that contains interviews, articles and “product offerings that resonate within urban communities.” It has also increased the frequency of its Hispanic marketing venture, La Vida, to 52 times a year.

Both Urban Direct and La Vida top one million in circulation.

That means that content and “catalog style” ads exist side-by-side. LL Cool J wants his CDs to sell at Kmart so he’s on the cover and the lead feature. Nokia and Conair sell a ton of product at Kmart, so they are prominently featured in the advertising. Kmart spokesperson Susan Dennis wouldn’t comment on the exact financial arrangement. But the costs of publishing two million copies of an FSI are substantial, especially for a retailer looking to escape Chapter 11. Judging by its commitment to Urban Direct, the concept is working on a financial level.

“We approach this as a ‘Parade’ type of concept that will allow us to reach the customers located in those markets with information that matters to them,” said Dennis. “It’s built into our ad plan.”

Urban Direct will be circulated in nine select markets including: Atlanta; Baltimore; Chicago; Detroit; East Brunswick, New Jersey; Long Island, New York; Miami; Philadelphia; and Washington, D.C. According to Kmart, its stores maintain a presence in 288 of the 331 Metropolitan Statistical Areas (MSAs) in the U.S.; a great majority of which, by nature of their population density and multicultural makeup, are considered urban markets.

The entertainment and lifestyle content, for the first issue of Urban Direct will also feature information on Kmart's nationwide Black History Month campaign: "Celebrate the Journey." Kmart's nationwide in-store, online and radio advertising program is intended to build awareness, interest and visitation at the Park Foundation's African American Experience Fund sites.

Kmart has also targeted Asian-American with its recent turn toward multicultural marketing, which began last spring. “We’re definitely looking at that market as a publishing opportunity as well,” Dennis said.