DIYers talk shop tools and better organization

DSN Retailing Today, Jan 24, 2005 by Debbie Howell

The shrinking of the do-it-yourself auto mechanic customer base may have been greatly exaggerated. While fewer consumers today will tackle heavy-duty repairs, the market for light DIY activity and accessorizing has triggered strong demand for shop tools and accessories, from mechanics' tool sets to garage storage systems.

"Consumers are on a drive to get organized, and that is what has really supported growth in the category," said Gary Marcus, vp of marketing and business development for Waterloo Industries, a leading manufacturer of tool cabinets.

Sales of garage storage systems are strong, according to vendors, while at the same time elements of personalization and style have crept into the equation for the first time. Examples include Alltrade Tools' designer shop stools and Hot Rod branded "Garage in a Box" kits featuring a creeper, jack stands and a floor jack.

Expanding the shop tool and garage organization category has been a priority at Pep Boys. The retailer created garage and power tool sections in its remodeled stores to showcase expanded assortments. Sales have been strong, with consumers embracing this larger selection of shop tools and garage organization products.

"The garage category has been performing extremely well," said Bill Furtkevic, senior director of marketing and advertising at Pep Boys. "We have extended a great deal of energy and creativity in broadening the category over the past 12 months."

This assortment includes new categories such as air compressors and broader lines of air tools, generators and cordless power tool sets. Furtkevic said sales have been strong across the board in shop items--garage organization, power tools, lift equipment, pressure washers, compressors, generators and tool sets.

Sears has also noticed the growth in the category. As one of the largest retailers of mechanics' tools and tool storage cabinets under its Craftsman brand, Sears heavily promoted tools and storage systems during the holidays.

"Tools has been one of the most popular areas during the holidays," said Lisa Gibbons, a Sears spokeswoman. "People are starting to look toward the new year and organization and getting their garages in order."

Even retailers with a limited assortment in shop products, such as the Army and Air Force Exchange Service, have noted some interesting trends that bode well for DIY market growth. In jacks, the market is shifting slightly toward higher-priced jacks with higher ground clearance to fit light trucks and sport-utility vehicles, according to Tom Wilmoth, a divisional merchandise manager at AAFES.

For suppliers, increasing demand by consumers for higher-quality tools at lower prices is one negative in an otherwise strong segment. Complicating the situation is the fact that private label has become more readily accepted by the DIYer in some cases, from Craftsman to newer lines such as AutoZone's Duralast.

"You've had such a defamation of pricing that it's a real challenge," said Ken Linde, vp of sales and marketing at Nikota USA. "Consumers continue to demand more for less."

These pricing pressures haven't hampered innovation and creativity in the category, however. Nikota soon will unveil a line of digital generators that protect against power surges damaging powered products, while Sears' Craftsman brand recently added work gloves and goggles with built-in LED work lights. At Alltrade, the emphasis has been on presentation, such as new packaging for tool sets that enable the buyer to see all tools through an open window box on the cover.