Discounter Kmart Corp. is touting more exclusive brands and stepping up its mobile marketing efforts to win over cautious U.S. shoppers in what’s shaping up to be a highly competitive back-to-school season.

The unit of Sears Holdings Corp., sporting everything from embellished jeans to candy-colored staplers this season, will offer several new exclusive brands, including apparel lines “Dream Out Loud with Selena Gomez,” “Bongo” and “Rebecca Bonbon” as it takes on rivals like Wal-Mart Stores Inc and Target Corp.

“Most important to mom is her child feels confident going into school,” Kmart’s Chief Marketing Officer Mark Snyder told Reuters in an interview, adding that an adolescent girl “wants to fit in, but also wants to express her individuality and you’ve got to have fashion options to be able to do that.”

Despite the exclusivity, most of the items in these lines are priced under $20, making them affordable as well, he said, adding that products including bluejean leggings, or jeggings; embellished denims; graphic hoodies; and tees should be hot sellers this season.

For many consumers, convenience matters as much as fashion while shopping, the executive said.

With more parents relying on their smartphones and social networking to find the best bargains, the discounter is making a bigger push into mobile marketing this year.

It already runs a “Kmartzgo” service that lets customers shop for products using their Apple Inc iPhones and Android applications.

A recent Deloitte survey said retailers using mobile applications, text alerts and video content may win a larger share of shoppers’ back-to-school budgets.

Snyder said he expects the second-biggest selling season after Christmas to be highly promotional, as retailers ranging from discounters to office supply stores to drugstores battle for a bite of the back-to-school sales pie.

He sees shoppers continuing to stay cautious and focus more on essentials like stationery and apparel this year, as more parents try to stretch their budgets and school districts load more of their purchases onto parents.

Kmart is also offering layaway options, giving shoppers up to 8 weeks to pay for the back-to-school goods.

In June, several U.S. retailers told Reuters that they expected this back-to-school season to be only a bit better than in 2009, dampening hopes that the second-biggest sales period of the year might give the retail industry and economy a big boost.

Sears shares were down 2.3 pct at $72.16 Tuesday on Nasdaq.

By Dhanya Skariachan