Pool chemicals clean up in outdoor market

Discount Store News, August 20, 1990 by Frank M. Viollis

Pool Chemicals Clean Up in Outdoor Market

With residential pool sales increasing 5 percent per year, retailers are reaping a bonanza in the $2.1 billion pool chemicals and maintenance products market.

Discounters report that summer 1990 pool chemicals and accessories sales have been strong, particularly compared with 1989 sales. While thermometers, test kits, nets and other accessories continue to sell well - and at good margin - the "meat and potatoes" of the category are pool chemicals. With significant variances due to regional factors, discounters are exhibiting an increased awareness of the need to maximize their efforts in selling this price-sensitive, commodity item.

For most discounters, pool chemicals and accessories are considered "seasonal" products. Year after year, the sales window remains relatively consistent, as does the date of initial advertising promotions.

"We maintain a little different sales strategy with pool chemicals than we do with other product lines," said an executive at Fisher's Big Wheel, "primarily because it's a short season. Our initial order is in by April 1st; our initial advertisement is out by May 1st; and, season service cycle runs about four reorders, though our supplier is in here every two weeks to verify, and upgrade our stock."

Another regional discounter, Rose's, based in Henderson, N.C., tailors its products based on their geographic location. "We don't carry pool chemicals or accessory products in all our stores," said an executive. "Those in mountainous areas like Kentucky and Tennessee don't carry any pool products. Those in the Carolinas and Georgia do."

Like their distant seasonal cousins - snow blowers and barbecue grills - pool chemicals and accessories often find sales are affected by the whims of Mother Nature. Poor weather can turn even the most sophisticated marketing strategy to just so much paper.

"Last year, the weather really hurt our pool chemical sales," said an executive at Stuarts Department Stores, which displays pool-related products on a 16-foot gondola with endcap. "We promote our products well, using full-color supplements in local newspapers, brochures, and the like. But, when the weather is bad, like it was last year, pool-related product sales suffer."

Fortunately, this summer the weather in the Northeast where Hopkinton, Mass-based Stuarts operates its 23 stores was improved, and so were Stuarts' pool chemical sales.

National retailers like K mart are less vulnerable to the vagaries of Mother Nature. "We stick to basics," remarked an executive at the nation's largest discount chain. "We do vary our product line and displays by regions mostly to accommodate for the differences in selling season duration, but essentially we stick to basics. We can't do anything about the weather."

Besides good weather, another factor that has been driving pool chemical sales is the public's growing concern about water quality at beaches and municipal pools.

"People read about health-related problems at some public facilities and they worry," said one buyer. "They decide to stay home. If they have a pool, they use it."

The Rose's exec sees room for improved product promotion to increase pool product sales. "Where we carry the products, we have taken on no new items, nor have we dropped any old ones over the last few years. Our shelf space is constant and our sales have been flat," he said. "We advertise locally, but our overall pool promotion could be better. There's money to be made and the way you promote a product sells it."

Jamesway, the Secaucus, N.J.-based regional discounter, is one of the more aggressive retailers at promoting pool chemical sales. "We carry a very broad selection in our 16-foot section. We display 4-foot signs throughout the section that are designed to give the customer an education as well as promote the products. It's worked very well for us this year. We're right on target with our sales projection."

In contrast, Rose's is notable for its lack of point-of-purchase promotional displays. "Some of our stores will use in flatables [like pool rafts] as localized promotionals, but such displays are not standard," said the Rose's executive.

Fisher's Big Wheel, operating discount stores in Pennsylvania and Ohio, has succeeded in significantly increasing the sales productivity of pool supplies in its stores. In an attempt to fine-tune its operation, Big Wheel reduced its allotted areas for pool chemicals and accessories to 4 feet from 8 feet - quite a bit less than the 20-foot run allotted by K mart. Big Wheel's strategy appears to be working, though, as sales are well ahead of last year's despite the cut-back in shelf space.

Olin Corp.'s HTH product line (both its traditional chlorinated products and the new diatomaceous filter aids manufactured for Olin by Witco Corp.'s Inorganic Specialty Division) continues to ride the crest of sales popularity. The standard 25-pound plastic pail, the new 10-pound and 25-pound boxes, and even the 50- and 75-pound bags are heavily stocked by most mass merchants.