• by David Goetzl  @dgoetzl, August 16, 2007

Local stations and newspapers that are heavily dependent on department store advertising may get a lift from Martha Stewart this fall. Macy's is set to unveil an extensive push to launch a much-hyped line of home wares under the designer's name.

Spending for the effort behind the "Martha Stewart Collection"--which ranges from textiles to flatware and will be only in Macy's 800-plus stores--could be in the tens of millions.

CFO Karen Hoguet indicated Wednesday that the campaign--slated for a mid-September launch with a combination of brand and promotional messages--would probably duplicate the company's massive effort a year ago to introduce the Macy's brand across the country. (Some 400 stores under 11 different brands from the former May Co. took on the new ID.)

TNS Media Intelligence data shows that Macy's spent some $111 million last September, with some $65 million in newspapers and $27 million on TV. Hoguet said Macy's, known as Federated until June, is "excited" about the biggest launch in company history. The goal is to use the Stewart style to drive traffic to stores that could buoy sales throughout.

The potential bonanza is welcome news for media companies already hurting from a depressed auto category. Macy's has been struggling, creating the fear that the retailer could trim ad budgets. Local TV stations, in particular, have also worried that Macy's, with its 45-state footprint, might increasingly turn to more national platforms and hinder what traditionally has been a growth engine.

"We are not happy with our performance in the second quarter," Hoguet said on a conference call to discuss results.

She cited a "more challenging (economic climate) than we anticipated" as a factor in a 2.6% decline in same-store sales in the fiscal second quarter. A poor performance at the 400 former May Co. stores contributed to the overall sales drop of 1.7% to $5.9 billion. Earnings per share and operating income also dropped significantly.

She said Macy's "is somewhat optimistic" for the fall season, but then predicted sales in the holiday-heavy fourth-quarter would be flat to up 2%.

In late May, the company named a new CMO, Peter Sachse, replacing ex-Citibank marketer Anne McDonald, who was hired in February 2006. Sachse also heads Macys.com, a potential growth area. McDonald oversaw the national launch of Macy's a year ago.