Jaclyn Smith in at Kmart, Martha out?

Chicago -- U.S. retailer Kmart has signed a deal with former "Charlie's Angels" star Jaclyn Smith to launch a new bed and bath product line, the company says.

Smith has been associated with Kmart since 1985 but the move to give her product line a splashy launch now, as the discount retailer is facing the end of its current promotional contract with TV lifestyle guru Martha Stewart, is raising eyebrows about Stewart's future with the company, Crain's Chicago Business reported Wednesday.

Kmart, owned by Sears Holdings Corp. of suburban Chicago, has seen Stewart craft sponsorship deals with other retailers such as Macy's and Wal-Mart, and with the end of her Kmart contract coming in 2010, the company may be angling to line up Smith as Stewart's replacement, analysts said.

"Kmart has to do something," retail consultant Howard Davidowitz told Crain's. "They're losing their No. 1 icon and their signature brand."

Sears Holdings Chairman Edward Lampert has said that Stewart's contract, which guarantees minimum royalty fees from Kmart, has become too pricey, the Chicago Sun-Times reported.

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