New products fuel success at crafts chains - Discount Store News Annual Discount Industry Report; Part 2; Merchandising and Productivity Analysis

Discount Store News, August 2, 1993

Crafts category sales will grow at an even faster pace in the next 12 months than it did in the previous year. Endless stream of new products that lure new consumers to try their hand at crafts and the greater availability of crafts through full-line discounters and through the growing ranks of chain specialty stores are key to the crafts industry's success.

Crafts sales through full-line discounters reached $1 billion in sales, based on DSN's State of the Industry Report: Part 2, still outpaced by the mushrooming specialty discounter segment with $3 billion in sales last year. While the department averaged 750 sq. ft. among full-line discounters last year, the renewed attention to the category among discounters is likely to lead to a higher total sales figure and an increase in the average square footage by the end of this year.

Wal-Mart, the undisputed leader in the crafts category among full-line discounters, is expected to get competition in the near future, a situation that is likely to result in higher sales and greater consumer awareness of the category.

Target, which had sold yarn and sewing notions, is said to be working toward an expanded crafts department, and Kmart, which also offers a very basic assortment, might not be far behind. The intertwinning of home decor and the crafts category is key to the recent involvement of not only full-line discounters, but also home decor chains like Waccamaw and variety stores as well.

New, easy home decor projects from McCalls and Simplicity promise to lure new consumers into pattern and fabric purchases. New patterns that involve the use of sheets rather than bolts of fabric stimulate sales in two ways. The use of sheets in home decor craft patterns enables the consumer to create a fabric-covered lamp, which will coordinate with her bedroom ensemble. By using sheets, the retailer does not need to devote the manpower or square footage required of a fabric department.

Kids' crafts--especially with a dinosaur theme--holiday home decor projects, jewelry-making, easy to make yarn projects, moldable plastics and nosew fabric crafts are just a few of the new twists in the crafts department that are expected to build crafts sales in 1993.

Tulip's new ColorPoint Stitch paints, Duncan's new Scribbles paint-on lace, both debuted at the Association of Crafts & Creative Industries' International Craft Exposition last month, promise to keep the fabric painting category on its explosive growth track.

The growth in any number of crafts categories, but jewelry making in particular, resulted in dynamic growth in the organizer and storage business. Eagle Affiliates' CraftStor product, which has made its way into many crafts departments, is expected to get competition from Rubbermaid, Sterlite and other plastics and storage vendors.

Yarn sales are expected to begin a comeback this year after several years of fairly flat sales, according to Richard Caron, merchandising manager with Monsanto, due to both no-knit/no-crochet projects and, early next year, a promotion called Designs for America. The program will involve the availability of free consumer project sheets featuring knit and crochet items created by roughly 15 key designers.

The silk floral category, especially foliage, is projected to experience accelerated growth, especially through discount and discount specialty outlets, according to the Study of the Permanent Floral Industry in the United States, presented at the Silk '93 expo earlier this year.

The next horizon for the silk floral industry is expected to be membership warehouse clubs which sell arrangements, artificial trees and holiday garlands to small businesses.

New store openings among the craft and/or fabric specialty store segment are sure to result in a degree of industry consolidation in overstored areas like portions of the Midwest, but renewed involvement by full-line discounters and the expansion of specialty chains into less competitive markets will fuel overall category growth.