Last spring, Macy's Inc. Chief Executive Terry Lundgren came up with an ambitious plan to display a massive new line of home goods produced exclusively by Martha Stewart: creating 3,000-square foot mock "homes" in key stores. Home builder KB Home planned to build the huge showcases inside Macy's stores in such cities as New York, Chicago and San Francisco, the Wall Street Journal reports.

But Macy's now has canceled the mock-home plan, citing a sharp decline in the housing market.

In interviews Friday, Macy's officials said the company won't scale back the launch of Martha Stewart merchandise. Some items from the new collection -- a line of roughly 1,500 home accessories such as stainless-steel cookware, china and glassware, collapsible colanders and a wide array of towels, linens and bedding -- will begin appearing in Macy's stores next month, followed by the full collection in mid-September. That launch will be accompanied by a massive nationwide media and marketing campaign.

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