Stewart to sell crafts at Wal-Mart

The company is looking to replace Kmart with another low-price operator.

NEW YORK (AP) — In its first foray into Wal-Mart stores, Martha Stewart Living Omnimedia Inc. said Wednesday it will expand its Martha Stewart Crafts line with the world’s largest retailer starting this month.

The New York-based media and merchandising company said two new assortments — Martha Stewart Create and Martha Stewart Celebrate — will make their debut in the majority of Wal-Mart stores in the U.S. and Canada. Martha Stewart Living had launched its Crafts line in 2007 at arts and crafts stores, including Michael’s Inc.

Martha Stewart Living’s shares rose more than 2 percent in morning trading before slipping 21 cents, or 3 percent, to $6.78, the low end of its 52-week range of $5.22 to $16.49.

The company has lost about three-quarters of its value since a high of about $37 in February 2005 as investors worry about limiting growth amid woes at Kmart, its longtime retail partner, whose contract ends in January 2010. Kmart has been selling the Martha Stewart Everyday home line since 1997.

Martha Stewart Living is looking to replace Kmart, owned by Sears Holdings Corp., with another low-price operator. Company officials Wednesday declined to comment on whether it was pursuing Wal-Mart Stores Inc. to be a replacement, only saying, “We remain committed to our relationship with Kmart and continue to design beautiful, new Martha Stewart Everyday products exclusively for Kmart.”

Martha Stewart Living has been aggressively expanding with new merchandising deals and new publications in recent years.

Last year, Martha Stewart unveiled an exclusive home furnishings collection with Macy’s Inc. as part of a multiyear deal; it also signed a multiyear deal to develop a cobranded line of frozen and fresh food with Costco Wholesale Corp., which started being rolled out late last year.