Corded minivac biz charges up - discount store sales

Discount Store News, August 6, 1990 by Mary Ellen Kelly

Corded Minivac Biz Charges Up

Minivac manufacturers and retailers expect double-digit sales gains in the product category this year as consumers trade up to higher-priced, full-featured models. Suppliers and retailers that do not offer upgraded models project only single-digit or flat sales for the year.

In addition, corded minivac models, already benefiting from trade-up sales, could be favorably affected by changes in state legislation. Laws stating that rechargeable batteries must be removable from minivacs and other rechargeable appliances have already been passed in Connecticut and Minnesota. Several other states, primarily in New England, are considering similar legislation to make it possible for consumers to dispose of batteries properly when the appliance is no longer wanted.

The effect of such legislation on sales of corded minivacs should be positive. First of all, environmentally minded consumers are likely to opt for models that do not contain batteries that will ultimately become nickel-cadmium waste. Secondly, prices on rechargeable models could rise as manufacturers make changes in existing product to conform to the new laws.

Manufacturers that had offered only battery-operated minivacs are already taking steps toward corded hand vacs in response to consumers.

New corded minivacs such as Regina's Dirt Magnet are being introduced or developed by leading manufacturers to take advantage of this underdeveloped minivac niche.

Beefed-up advertising by several of the top suppliers, especially during the fourth quarter, is expected to further propel category sales.

The movement of minivacs from either the hardware/automotives area or electric housewares area into the floor care department is also said to be contributing to the sales stampede.

While some of the larger chains had made the transition from the hardware department to floor care years ago, others made the switch more recently. One example is Roy R. Love Co., a small regional chain that is part of the Gibson franchise group. Buyer Toni Barbara said the company moved cordless vacuum cleaners from hardware to floor care during the first half of this year.

"Based on what I've seen so far this year, I expect double-digit sales gains by year-end," Barbara said. Five feet of the chain's 80,000-square-foot stores are devoted to minivacs. Her best seller is a corded minivac, the Dirt Devil by Royal; the Black & Decker models in her assortment are doing nearly as well.

"Our customers are primarily older people and they really prefer the corded models. They even come back and buy the attachment sets," Barbara said.

Corded models are also the top sellers among minivacs at five-unit Home of Economy, a North Dakota regional chain. Floor care is part of the furniture department, overseen by department manager Loren Eickenbrock, who said the corded models "sell better than the battery-operated models by at least three-to-one. We sell very few with the battery, even on promotion."

The chain sells a corded Hoover model at $49.95 and two battery-operated units at about $35. One of the battery-operated models will be discontinued soon, Eickenbrock said.

Carol Dores, marketing manager of cleaning products at Black & Decker, said the company enjoyed a 10 percent gain in minivac sales last year and anticipates the same level of growth by the end of 1990.

The minivac market is far from mature. Dores estimated market penetration of minivacs in the United States to be at 35 percent of all households. That figure should climb to 50 percent within the next three years.

"Less than three years ago, market penetration was only at 25 percent. Multiple ownership traditionally has not been a factor," Dores said. "These figures indicate growth in first time buyers and some replacement unit sales."

Black & Decker just began shipping its PowerPro Heavy Duty Cordless Vac which offers 75 percent more peak suction than other PowerPro models.

PHOTO : Black & Decker, looking toward a 10 percent in minivac sales this year, has just begun

PHOTO : shipping its PowerPro Heavy Duty Cordless Vac.