NEW YORK (CNN/Money) - Bankrupt discount retailer Kmart Corp. dropped the BlueLight.com name from its online shopping site and relaunched it as Kmart.com, featuring expanded offerings in clothing, kitchenware and other items, the company said Wednesday.

Kmart's (KM: down $0.03 to $0.83, Research, Estimates) revamped Web site incorporates the company's new "Stuff of Life" advertising campaign and corporate branding program, aligning it with its store operations. The site, which the company said is now easier to use, also includes a section alerting consumers to nationwide promotions and sales, and expands the number of name brands offered.

The Web site, launched in 1999, features an updated look and additional products, the company said.

"As we build a new Kmart, we feel it is important to demonstrate a unified brand message across all our consumer touch points," Richard Blunck, CEO of BlueLight.com, said. "Having done our due diligence, we are responding to our customers who have a very strong affinity for Kmart and what it represents -- exclusive brands, value and convenience."

Company followers approved of changing the BlueLight name, which refers to the flashing blue light the stores once used to alert customers to hourly specials. Though the Web site now is Kmart.com, it continues to be operated through BlueLight.com, a wholly-owned Kmart subsidiary based in San Francisco.

"We have always been skeptical of their reverting back to their blue light roots in the stores and on the Web," said Bill Dreher, a retail analyst at W.R. Hambrecht & Co. "Instead of emphasizing every-day low prices, it appears to emphasize one-time grab-bag bargains, which is not what the consumer wants right now."

Kurt Barnard, president of Barnard's Retail Consulting, said the idea was a sound one that should prove extremely effective as part of the company's turnaround effort. "The name Kmart should be kept before the customers' eyes continuously," Barnard said. "You don't walk into a BlueLight store, you walk into a Kmart store."

Still, Kmart has a long way to go before emerging from bankruptcy protection. Last week, Kmart reported a first-quarter loss of $1.45 billion as it took a nearly $800 million charge related to closing 283 stores.

Kmart, which filed for Chapter 11 bankruptcy protection Jan. 22 after succumbing to declining sales and stiff competition from Wal-Mart (WMT: down $0.44 to $58.03, Research, Estimates), Target (TGT: down $0.10 to $39.10, Research, Estimates), and other discount chains, is being investigated by the FBI, but the company and investigators have declined to disclose details.

Additionally, the Troy, Mich.-based chain is conducting an internal stewardship review of the activities of the previous management under former CEO Chuck Conaway. Critics blame Conaway, who was hired to turn the company around, in part for Kmart's bankruptcy because he tried to compete head-to-head with Wal-Mart, the world's biggest retailer.

Adding to the retailer's woes are questions surrounding one of its most important brand license partners, style maven Martha Stewart. Authorities are questioning whether Stewart had insider knowledge when she sold her 3,928 shares of pharmaceutical firm Imclone Systems Inc.