Kmart brings back blue light special to excite customers

— Attention, Kmart shoppers: The blue light special is back.

The venerable discounter is reviving the legendary sales tactic on Saturdays to bolster sales and attract shoppers who have migrated to other big box retailers, said Tom Aiello, spokesman for Sears Holding Corp., which owns Kmart.

The company quietly began reviving its most famous promotion in July, creating excitement at stores across the country with hour-long surprise sales - usually at 40 percent to 70 percent off sticker prices.

Some stores still had their original, decades-old blue lights for a "vintage feel," while others used blue balloons, Aiello said.

Created in 1965 by an Indiana store manager to move stagnant merchandise, the blue light special is "one of the [most recognizable] superbrands any retailer has ever configured," said Michael Bernacchi, professor of marketing at University of Detroit Mercy.

The term, synonymous with generic deals and discounted finds, has earned a place in pop culture.

The phrase maintains a nostalgic appeal to generations of shoppers, who remember the booming announcements and a rush to find the heavily discounted item in an aisle with a flashing blue light.

"Kmart certainly rode that crest for quite some time," Bernacchi said. "At its zenith, people clamored around it."

Though there have been attempts to revive the blue light special since it was retired 18 years ago, the latest effort has a better chance because Kmart is discounting more of its popular merchandise, Aiello said.

The response so far has been overwhelming. For many shoppers, "it's a fun memory from when they were young," Aiello said.

Customers shopped more frequently and stayed longer to find out about the next sale.

Some retail analysts, however, doubt that the concept will resonate with younger shoppers.

"I don't know that the blue light special means much to consumers anymore," said Ed Nakfoor, a Birmingham, Mich., retail consultant. "I just can't imagine people flocking to get to the blue light."

Kmart, which began in 1899 as S.S. Kresge (a dime store) in Detroit, has not fared well the past decade.

The company filed for bankruptcy in 2002 amid slowing sales before merging with Sears as Sears Holding Corp.

Business, Pages 70 on 08/30/2009

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