Jasmine and angular mocks : mocking a service that handles local storage

I have one service called wd$cache, that is basically a wrapper for localStorage.setItem and get.item.

Now I'm trying to test a controller that uses that service to achieve a certain result. The main problem is that I have an IF statement that gets triggered only if you have localstorage set already which is driving me nuts! (we are doing TDD here)

SERVICE

(function () {

angular
    .module('hub')
    .controller('promotionNotificationCtrl', promotionNotificationCtrl);

promotionNotificationCtrl.$inject = [
    'hub$promotions',
    'hub$client',
    'wd$cache'
];

function promotionNotificationCtrl(
    hub$promotions,
    hub$client,
    wd$cache) {

    var vm = this;
    activate();

    //////////

    function activate () {

        hub$promotions.get(hub$client.brand, hub$client.subbrand).success(function (data) {

            if (!wd$cache.get('hub$notification')) {

                wd$cache.add('before', 123);
            } else {

                wd$cache.add('after', 321);
            }
        });
    }
}

})();

TEST

describe('The promotion notification controller', function () {

var controller,
    hub$client,
    $httpBackend,
    wd$cache,
    mockData = [{

        "foo": "bar"
    },
    {
        "faa": "boo"
    }];


beforeEach(module('hub'));
beforeEach(module('wired.core'));

beforeEach(module(function ($provide) {

    hub$client = {

        brand: 'bw',
        subbrand: 'plus'
    };

    wd$cache = {

        add: function () {

        },

        get: function () {

        }
    };

    $provide.value('hub$client', hub$client);
    $provide.value('wd$cache', wd$cache);
    spyOn(wd$cache, 'add');
}));

beforeEach(inject(function ($controller, _$httpBackend_, _hub$promotions_) {

    controller = $controller('promotionNotificationCtrl');
    $httpBackend = _$httpBackend_;
    hub$promotions = _hub$promotions_;

    // request
    $httpBackend.expectGET("/umbraco/api/promotions/get/?brand=bw&lang=en&subbrand=plus").respond(200, mockData);
    $httpBackend.flush();
}));

it('should attempt to add a cache with a "before" key if no previous "hub$notification" cache was found', function () {


    expect(wd$cache.add).toHaveBeenCalledWith('before', 123); //WORKING
})

it('should attempt to add a cache with a "after" key if a previous "hub$notification" cache was found', function () {

    localStorage.setItem('hub$notification');
    wd$cache.add('hub$notification');

    expect(wd$cache.add).toHaveBeenCalledWith('after', 123); // NOT WORKING
    // CANT GET THROUGH THE IF STATEMENT
})

});

Basically I can never get to 'AFTER', whatever I do. I've tried everything, since mocking it to use actual storage.

Any ideas?