Closet organizer chains step out: specialty outlets explore new markets

Discount Store News, Sept 3, 1990 by Mary Ellen Kelly

At the other end of the spectrum is Spaces. While the company's 5,000-square-foot to 7,000-square-foot units are not the smallest in the market, it is one of few companies that are reducing the size of future stores somewhat. John Welnack, president and chief executive officer said the company is trying to adjust its assortment to be more upscale and focused as part of its "concentration on asset management." Welnack said. Two of the company's stores are in mall locations; the other two are in strip centers.

Hold It!, St. Paul, Minn., is another chain that is anticipating growth beyond its Twin Cities market by the start of 1992. Marvin Krichmar, general manager, said the company plans to open another two stores in the Twin Cities for a total of five stores before moving to a new market. While no decisions have been made, Madison, Wis., is under consideration.

Hold It! currently operates two stores in the Twin Cities area and two in San Diego. A third Twin Cities store is slated to open during the fourth quarter of this year. The retailer has not advertised much to date, but with the opening of the third store Krichmar said he expects to add television advertising to his radio and print ad budget.

The basic Hold It! concept has not been changed much since its inception, but recent adjustments in the mix reflect consumer buying trends and new competitors. "We increased space for laundry items like ironing boards and racks and decreased space for packing/wrapping and corrugated basics," said Krichmar. "A lot of packaging specialty stores cropping up now. Since these products were low margin and take up a lot of space, we trimmed the assortment," he added.

Hold It! is perhaps the only specialty store besides California Closet/Hold Everything stores that offers both retail sales and installation of customized organization systems.

Maynard Hale Lyndon and his wife Lu Wendel Lyndon have cultivated the Boston organization market by opening seven stores, with another two slated for next year. The expansion pace could pick-up if one of the chain's major investors, CML, Acton, Mass., decided to acquire the chain. CML is also a major investor in other burgeoning home fashions-oriented retailers.

Maynard Hale Lyndon told DSN the next logical place for expansion for Placewares is Connecticut. The first Placewares in Connecticut could open by 1992. The retailer operates a 16,000-square-foot distribution center and owns its own trucking fleet. Lyndon estimated he could cover the entire New England region with the single DC. [Tabular Data Omitted]

PHOTO : The president of California Closet, Neil Balter, said his customized closet service will

PHOTO : be integrated into all Hold Everything stores. The chain was bought by Williams Sonoma

PHOTO : earlier this year.