Home decor fueled by fashion: non-electric housewares focus on looks, not on functionality - Discount Industry Annual Report: part 2: Merchandising and Productivity Analysis

Discount Store News, July 16, 1990

Home Decor Fueled by Fashion

Non-Electric Housewares Focus On Looks, Not On Functionality

The desire of consumers to embellish their home environment remains a key source of discounter profit and sales dollars in non-electric housewares. This craving to spruce up the home is pushing sales into merchandise categories whose only function is to beautify.

The home products department is being recast at some chains as decor merchandise--items that are high in fashion but low in function--have flourished. Most notable are crafts and the subcategory, silk flowers. Both are intimately linked with the color themes of the home.

The craft category's home decor connection has resulted in expanded crafts departments at regional chains such as Harts, Columbus, Ohio, and Jamesway, Secaucus, N.J., as well as the profitability of burgeoning discount craft operations like those undertaken by variety store chains such as Ben Franklin and Winn's.

Jamesway has been experimenting with an enlarged department which is set off from the rest of the store with an awning. Harts is currently testing an enlarged crafts department and may increase the footage devoted to silk flowers. Silk flower volume escalated in response to an everyday low price in the category.

While the news in non-electric housewares has been color and style during the past several years, at least one category which is nearly devoid of fashion appeal is expected to rise in popularity during the 1990s. The one-two punch of "cocooning" and environmental awareness could inject life into steady home canning supplies sales.

These factors, coupled with an undertow of fear linked to dangerous produce (pesticides used on imported fruits and vegetables, alar on apples, health hazards linked to grocery store produce sprayers) is apt to drive consumers to their backyards for fresh foods in the '90s.

The push of environmentally safe products and the corresponding pull by consumers for these products led to turmoil last year in the trash bag industry. The bottom line, however, was that, in the absence of any governmental standards, no kind of degradability was determined to be safer than any other. Nonetheless, the trash bag controversy should lead to greater discretion by manufacturers in the environmental claims they make for the products.

Household chemical manufacturers are already introducing cleaners that contain more environmentally benign ingredients. Ready-to-assemble furniture manufacturers are re-evaluating the packing materials and cartons they use to ship furniture. Numerous other changes will undoubtedly buffet the housewares department in the years ahead.

Concern about the environment is one facet of a growing appreciation for the outdoor lifestyle. Outdoor dining is also cultivating an increased demand for melamine, acrylic and other unbreakable servingware including licensed juvenile serveware.

Private label tabletop assortments, whether imported or domestically sourced continued to gain momentum. The catalog showroom chains like Consumers Distributing and discounters, ranging from regionals such as Caldor and leading national chains like K mart, are trying to exploit the profit potential behind exclusive patterns. Even membership warehouse clubs such as Pace are working with individual vendors for exclusive tabletop patterns, at least for the first six to 12 months after the launch of a new design.

The jury is still out on how successful K mart's Martha Stewart line has been with consumers. The tabletop collection brought together various combinations of striped, solid and banded dinnerware in peach and aqua with complementary glassware, flatware and table linens.

Black and white were featured by virtually every specialty store and catalog showroom operator during 1989. Most will keep black and white as the main thrust of the decorative housewares area during 1990. Discounters will further experiment with lower priced adaptations of black and white.

Jewel tones are trickling down from department stores into specialty and catalog showrooms at present. By next year, upscale full-line discount department store shoppers will begin to show interest in accent pieces such as vases in these colors.

Many ready-to-assemble furniture manufacturers embellished products beyond the price point reach of some full-line discounters as they attempted to woo the burgeoning home office superstore retailers.

The tremendous growth in the type of outlet where RTA furniture can be purchased--and resulting competition--caused some discounters to cut back assortments and return to RTA pieces that can be sold at tried-and-true price points under $100. RTA furniture is now available at discounters, home centers, catalog showrooms, consumer electronics specialty chains, home office superstores and direct mail catalog houses from Spiegel to L.L. Bean.

Fashion Vs. Function

The fashion vs. function buying decision comes to a crossroads at RTA furniture. While good looks is certainly of consequence in furniture, the relatively high price points in furniture could tip the scales toward products that sacrifice some elements of style but provide the right function at the right price.