$100-plus cookwear makes entree at mass

Discount Store News, June 8, 1998

Consumers warm up to price/value equation

Discount stores have traditionally shied away from the over $100 price point in cookware, believing that its customer base was not educated enough to understand the price/value equation.

But things seem to be changing. Target will tread in the over $100 waters this summer with Avalon, a hard-anodized aluminum non-stick cookware line from Meyer that is targeted at a younger, hipper consumer group. Sears will also stock the new line during the same time frame.

ShopKo broke through the price barrier last year with Wearever Air hard-anodized cookware, which is priced at $119, $100 on ad. "Anodized cookware has a future in the mass market. To date, however, it isn't a big chunk of our business," said Bob Segal, vice president, divisional merchandise manager. "In order to be successful, the cookware has to be marketed in a compelling way. It is up to the manufacturer to educate the consumer about the benefits and features and why it's worth a little more."

Education seems to be the primary sticking point in getting mass market consumers to spend those extra dollars for higher-end products. Often mass market consumers don't understand that anodized cookware provides improved cooking performance and cleanup.

The acceptance level is much higher in the specialty and department store segments, which do a significant amount of business in anodized cookware with wide and deep selections of Calphalon, Anolon, Meyer and Farberware in price points that flirt with $500.

"Higher-end cookware is the bread and butter of specialty and department stores, which do a particularly effective job at merchandising the product mix," said a housewares buyer from a Northeastern specialty store. "They have the floor space and the wherewithal to do it right."

HomePlace is a perfect example. Its cookware department has a real flair for the dramatic with pots and pans hanging from overhead racks, entire product lines attractively laid out and a host of Who's Who of high-end brands.

"Even though the mass market can't compete with specialty and department stores on breadth of product, that doesn't preclude the segment from creating some excitement in the category with some better goods," said one housewares executive.

This is welcome news to manufacturers that have attempted to bring higher-end anodized cookware to the mass market over the past few selling seasons without much success.

This hasn't discouraged the more aggressive manufacturers. Wearever hit the $99 price point two years ago with Wearever Air hard anodized cookware with stainless steel venting covers for steam release and curved black phenolic handles. To date, the line has performed fairly well thanks in part to its exposure to a wider audience.

Regal came to market this year with Kitchen Pro, an eight-gauge set that is treated with an electro-chemical process that creates a surface 30 times harder than stainless steel. The $99 line is also scratch resistant and will not flake, chip or fade.

Where the mass market shines is in non-stick cookware, which occupies most of the shelf space and is priced anywhere from $69.99 to $89.99 with a full range of product from leading brands like T-Fal, Farberware, Wearever and Regal Ware.

At one time, Ames couldn't give away cookware sets at a 19.99 price point, according to Jim Aglio, senior vice president, general merchandise manager, home at Ames. The story is quite different now as the chain has developed strong businesses with Revere, T-Fal and Farberware. In its Cromwell, Conn., store, open stock and boxed sets are mixed together and create a powerful cookware story. The chain challenges the rice point ceiling with an 89.99 price point for an 8-piece non-stick cookware lines from Farberware and WearEver.

For ShopKo, non-stick cookware is the largest segment of its cookware business, particularly in open stock skillets. The chain has also established a good/better/best selection with T-Fal's Classic, Royale and Versailles lines. "The advantage to stocking a multitude of price points is that you get a chance to attract a variety of customers into your doors," said Segal.

Manufacturers are also working hard to create innovation in non-stick cookware which has experienced a modest 3% growth over the past year.

In July, Mirro Corp. will introduce StratchGuard nonstick technology on four cookware lines. The cookware carries the claim that it can be utilized with metal tools that will not damage the surface. Each will be priced over $100, according to Dave Merten, vice president of merchandising at Mirro.

T-Fal has come to market with Ultrabase Ingenio, a $99.99 line of stackable cookware that can be transferred from the stovetop to the oven by removing the handle. Each piece comes with a plastic storage cover that can be used in the refrigerator.

"Most retailers want to go over or approach the $100 price point and I think consumers will buy the products if they understand the benefits. It is up to the manufacturer and retailer to work together to provide this information," said Merten.