Storage shelving cleans house - Hardware Update - Plastic storage gains in popularity

DSN Retailing Today, Jan 27, 2003 by Debbie Howell

Organizing the garage or basement may not be a project homeowners are anxious to tackle, but demand is nonetheless strong for products that tame clutter in what has become prime storage space.

As a result, products have moved beyond basic utility shelves to sturdy, weatherproof cabinets, holders for specific applications and coordinated workshop pieces that not only organize items, but look great, too. But while the storage category remains strong in sales, the tough economy is putting pressure on vendors to keep price points low, with the typical consumer gravitating toward lower-cost quality items in sturdy plastic.

"The trend seems to be forcing the price down, but keeping the same quality," said Jeff Rustemeyer, director of marketing and sales for Plano Molding Company.

Rustemeyer estimated sales of plastic shelving and cabinets at $270 million, with growth of 3% to 5% per year. But even as the market pressures prices downward, he added that improved plastic construction is enabling vendors to make incredibly durable units. Plano's heavy-duty shelving line, for example, holds up to 300 pounds per shelf and sells for $40.

Retailers have embraced storage, expanding this category that crosses between hardware and housewares. This past year, Kmart added new wood, metal, plastic and wire tiered shelving, while Target has given premium space in its home improvement section to shelving and cabinet products of all types, with price points going as high as $99.99.

Home centers offer the broadest selections and highest-priced options, such as coordinated systems that operate off slotted walls to which components can be added for a custom effect. Some vendors described this segment as healthy despite the economy, though a Rubbermaid spokesman noted stronger growth in its newer plastic pieces than in its premium Fast Track garage system, which had fiat sales last year.

"Consumers want something that is easy to assemble and will stay in good shape forever. That's why many are moving away from traditional metal and wood shelving toward plastic," said Adrian Fernandez, director of out-door storage for Rubbermaid.

Some of the newest Rubbermaid items meet the higher standards of those who want durability, security and style. Its heavy-duty cabinet, for example, has locking plastic doors and holds more than 150 pounds per shelf.

Contico, meanwhile, is emphasizing storage systems and products that utilize dead space. The company is developing storage solutions for the space between the garage door and ceiling, an area typically unused. Michael Bonadio, director of marketing, also noted a trend in item-specific storage.

"We have products that almost go to an extreme, such as little containers that will organize screws and nuts and bolts," Bonadio said, along with hooks for specific products such as bikes, wheelbarrows and garden hoses.

Closetmaid has also found success with application-specific products, such as a line of hooks called Hang-Ups. These products color-coordinate with the company's Maxload shelftrack storage system, encouraging a systems approach.

Whether the consumer opts for a systems approach or a low-cost solution such as basic plastic shelving, the market for products to organize the garage is expected to grow along with increasing rates in home ownership.