Mouse target markets at Kmart

Mickey and Donald are coming to Kmart. The retail giant is developing an exclusive line of Disney-branded children's clothing.

Some of the kids' apparel will carry images of Disney's iconic cartoon characters. Some of it will simply carry the Disney name. Kmart is working closely with Disney on the clothing line, and looking to create what it calls an "in-store experience" around the clothing.

Andy Mooney, president of Disney Consumer Products Worldwide, said the deal is "an excellent way for both companies to increase their strength and appeal."

Also not a bad way for Disney to dig up some found money in the face of its flagging revenues. No word on terms of the select licensing pact. - Richard Tedesco