Just 24 hours after announcing a staggering $67 million third-quarter loss, Kmart Corp. announced it would end its role as a sponsor in automobile racing. The company confirmed it’s marketing its NASCAR and CART sponsorships toward the goal of exiting the agreements prior to next season. Rather than spending nearly $40 million annually on auto racing sponsorships, the company will strive to build a stronger emotional bond with its customers, said Conaway. He plans new promotional and marketing programs directly aligned with customer research and preferences. Kmart has been the primary sponsor of a NASCAR stock car team for five years, the last three with Haas-Carter Motorsports. There are two years remaining on Kmart’s current NASCAR racing contracts. One year remains on Kmart’s associate sponsorship of the Newman/Haas CART Texaco racing team, which began in 1988. The team’s No. 1 driver, Michael Andretti, left after the season-ending race and will be replaced by Cristiano da Matta next year, racing alongside veteran Christian Fittipaldi. If buyers for these sponsorships are not found, Kmart will have to pay out both contracts. Kmart plans to continue selling NASCAR merchandise and develop special in-store promotions due to strong customer interest in NASCAR-branded products.(in part from the National Speed Sport News)(11-14-2000) UPDATE: a simplier explaination – Looking to shift its advertising dollars elsewhere, Kmart is trying to sell its sponsorship of Haas/Carter Motorsports’ two Winston Cup teams to other companies for 2001. Kmart officials say the company will honor the two years remaining on its contract and will be on the cars if no other companies assume the sponsorship(Winston Cup Scene Magazine)(11-16-2000)
