Hills resets watch department to fashion trends - Hills Stores

Discount Store News, Sept 4, 1995

CANTON, MASS. - When it comes to watches, Hills Stores wants to be known among shoppers as a headquarters. By adjusting the merchandise mix and re-tuning the presentation, the assortment is more than pulling its weight in the front-and-center real estate it occupies throughout the 159-store chain.

Manny Francione, recently promoted to vp, merchandise manager for fashion hard lines, told DSN that in particular, the non-promotional part of the watch business has been very good in 1995. He predicted the department would be ahead of plan for fall.

Donna Kessler, the Hills buyer for watches, said she has directed the reconfiguration of the assortment, presented inside and on top of nine showcases in the typical Hills store.

This regional discounter offers a higher proportion of its watches on countertop displays, about 55% of the assortment. Kessler said this gives Hills the opportunity "to romance each fashion watch line in its own way. We tell independent stories" for lines like Carriage, Revlon, L.A. Express and Gloria Vanderbilt." Kessler said few competitors offer four fashion lines in such a presentation. "We find that by promoting them together, they complement each other--and we sell more from inside the showcase as well," she said, noting that the Carriage and Revlon lines have been rolling out this summer after earlier tests.

Price points for watches at Hills run from as low as $4 up to $79.97, the highest price in the Faded Glory Survivor collection that Hills offers on an exclusive basis. Kessler said the Survivor line was launched in February and made a good showing at Father's Day. "They have a Swiss Army look. The customer is definitely going toward the rugged, casual, outdoor style."

To capture the greatest margin from that trend momentum, and to add new "urgency" to the merchandise mix, Hills is now bringing its Appalachian Trail apparel private label into the watch department in the form of mid-level priced goods. This move is part of the chain's general effort to encourage customers to trade up somewhat from opening price points.

While the $4 watches are still popular, there has been stagnant sell-through across the industry at the standard $9.97 price point, Kessler said. Optimistically, Hills sees this as an indication of more opportunity in the $16.97 to $19.97 range. Private label will play a key role in galvanizing this price zone, Kessler indicated, while licensed watches should move well at the $11.97 to $12.97 range.

Watches have not in the main suffered from the falloff in popularity of many sports and character properties in apparel, Kessler noted. She said the ability of lines like Looney Tunes to provide new looks on an almost monthly basis is helping sustain velocity.

With Americans embracing casual styles and with the increased level of competition among licensed lines and the discount brand suppliers, discounters are in general enjoying a wealth of fresh new looks from their resources. At the expense of such dressier old-line brands like Citizen, Elgin and Seiko, consumers are turning to the mass market for their wristware, which tends to project active sports and outdoor themes, as well. as licensed looks.

The increased level of business at discount is churning up the marketplace from the vendors perspective.

Much of the huge impact of Emex Indiglo was enjoyed in 1993 and 1994. However, in early 1995, as mass channel share leader Timex introduced new lines, there was, said Kessler, "a lack of newness in their men's line." This allowed competitors Armitron and Casio to make some gains.

Hills has recently remerchandised its Armitron display into a full 4-ft. showcase with a countertop presentation as well, to immediate good effect, Kessler said. In an effort to duplicate that success, Hills has focused its Citizen watch selection into a continuous, 2-ft. display in one showcase, with 24 skus.

In a growing emphasis on ladies' styles, Hills has increased its offering of expansion bands. In an appeal to an aging customer base, Kessler said more easy-read faces are also being featured. The Sarah Coventry and Brut fashion lines are also adding oomph' to the mix. Kessler said these provide some "dressy looks but at a good price, about $20."

In presentation wrinkles, Hills sometimes stations promotional watch fixtures in feature space near the checkout lines. In the watch department itself, the collection of related gift products has been concentrated in a new showcase. Cross and Pierre Cardin pens and Zippo lighters are among the items that attract the shopper and get them in the frame of mind for an impulse buy.

With the increased sharpness in display and a flexible and aggressive approach to the assortment, the watch department at Hills is earning its status as a "headquarters."