Hardware Show still riveting - National Hardware Show in Chicago - Brief Article

DSN Retailing Today, Sept 3, 2001 by Debbie Howell

Product innovation abounds despite economic woes

CHICAGO -- Even with the slowdown in the economy impacting sales of home improvement products this past year, vendors haven't held back on innovation to drive industry growth once again toward record levels. Though there has been a noticeable shift toward value oriented and energy-saving items, products launched at the National Hardware Show in Chicago last month followed ongoing industry trends: more compact, multifunction and easier-to-use tools; use of new technology in powered products; and a widening assortment of products appealing to female DIYers.

For the largest retailers, there were few surprises at the show, which was held Aug.12 to 14 at McCormick Place. Companies such as Wal-Mart and The Home Depot attend mainly to meet with key vendors because these chains have already seen the newest items. As a result, these changing dynamics once again took their toll on show participation. Exhibitor space was down 20%, according to show representative Dianna Smoljan, although she said the number of registered buyers was comparable to last year.

The exit last year of Black & Decker and SB Power Tools caused a ripple effect, with more large firms pulling out this time: GE Lighting, AmesTrue Temper and Milwaukee, to name a few.

Retailer reaction to the show was mixed. A buyer for Kmart said he would spend two worthwhile days at the show, while a merchandise manager for a large regional discount chain said his buying team would probably not return next year.

But with more than 3,000 exhibits on hand, the event is far from fading away. It provides a vital barometer for trends in six product categories: hardware, paint and home decorating, housewares, plumbing, electrical supplies and lawn and garden.

Nifty new tools always seem to attract attention, and this year was no different. Stanley Works unveiled 20 new products, including extensions of its popular premium Fat Max line: a tape rule with protective coating to reduce breakage; a quick rewinding chalk line reel; and a straightedge tool featuring a protective barrier.

The popularity of multifunction tools hasn't lessened either, with American Tool Companies now joining in. The Vise Grip Toolbox features a vise grip, scraper blade, wire stripper, dual-edge knife and two types of screwdriver bits.

In its "pro-grade" line, Allied International launched three new tools that will each sell for under $10--a wide tape measure similar to the Fat Max, a 12-in-1 screwdriver and an automatic loading utility knife. Brian Budrow, director of marketing, said that Allied's answer to softness in industry tool sales is "more of an emphasis on value."

Professional-grade brands stole the show in power tools due to the absence of the large consumer product vendors.

Makita introduced 30 new items, including a circular saw with built-in light and random orbit sanders that are quieter and minimize vibration. The shining star from Porter Gable was a product touted as the world's first cordless router, a 19.2-volt unit with interchangeable battery that fits the company's other cordless tools of the same voltage.

"It can do 100 board feet of oak before the battery dies," said Porter Cable's Todd Langston. "Battery technology has gone leaps and bounds over the past four years."

In the bath category, upscale designs and spa effects were prevailing trends. New toilet seats featured colorful images, unique shapes and bubble effects. Terry-cloth toilet toppers in the shapes of a fish, frog and turtle from Ginsey Industries, now rolling out to stores, are "by far our most successful product," said company representative Kelly Griffith.

Stylish faucets in antique bronze, polished brass and chrome remain popular, as well as spa-effect shower systems like Delta's jetted shower system, retailing for $250, and the $2,000 installed body spray shower by Alsons.

Makers of air purifiers, water filtration systems and similar items are benefiting from consumer concerns about contaminants. Waterpic Technologies' sanitizer system called Aquia, which infuses tap water with ozone then is used as a sprayon cleaner, is now shipping to retailers. Culligan, meanwhile, added a more effective reverseosmosis water filtration system that reduces levels of arsenic and other contaminants.

Remote control operation and programmability in fans, heaters, thermostats and purifiers were touted at Honeywell. A new window box fan, for example, can be set to sense the outside temperature and shut off accordingly. First Alert, meanwhile, debuted a smoke alarm that can be tested and disarmed by remote control.

The electrical category was overflowing with various energy-saving products. For Osram Sylvania, the focus was a new merchandising display that capitalizes on the growth of compact flourescent bulbs, featuring a consumer guide to making energy-efficient choices.

Garrity's new items included a stainless steel flashlight line and a glow-in-the-dark unit. Rayovac showed new flashlights with adjustable beams and multitools. Rayovac also debuted a one-hour nickel metal hydride battery charger.