Domestication sets the Table: by adding tabletop to its home textile merchandise mix, the cataloger has opened new sales opportunities

Discount Store News, Sept 17, 1990 by Nancy Brickman

Domestications Sets the Table

An elegant table setting - featuring brass accent plates, white porcelain dinnerware, crystal stemware and a lace tablecloth - adorn a two-page spread in a recent mail-order catalog. One might think there is nothing unusual about this, expect the book is Domestications, a catalog formerly devoted to home textiles.

Charles Pellenberg, gmm, Home Division at Domestication's parent company, Hanover Direct, explained his rational for expanding the catalog's assortment to include tableware.

"We knew people were setting a table [based on Domestication's high table linen sales]." The mail-order retailer decided to capitalize on its strength in selling items that dress up a table. Pellenberg said tabletop is a way for the catalog company to layer on new business while home textiles continue to grow.

In its spring '89 book, Domestications tested tabletop with two dinnerware sets, each promotionally priced at approximately $100. Since then, the catalog has gradually added tabletop and a handful of other home furnishing items, all at promotional price points, to appeal to its value-oriented customers.

Much of the tabletop merchandise is imported from lesser-known, independent companies vs. the familiar mill names found in Domestications' home textiles categories. And, several tabletop items, both imported and domestic, are exclusive to the mail-order retailer. Industry sources conclude that this strategy provides Domestications with better margins than name brand tabletop would, while still allowing the retailer to offer the merchandise at promotional prices.

One of Domestications better-known flatware vendors is Washington Forge. Sales representative Jerry Eagle said, "Domestications is doing supper." He noted when the catalog first carried Washington Forge stainless, Domestication volume projections were $500,000, but in the one year that Domestications has featured the flatware, business has hit $1 million at retail.

Another success story is Washington Forge's 48-piece gold flatware set that retails for $99 in the fall catalog. Eagle said the set has generated about $300,000 in sales.

Moreover, he said in some instances Domestications retails higher than a typical department store, yet still turns in terrific numbers.

Currently, Domestications has reached a year-round mix of 85% home textiles, 10% tabletop and 5% miscellaneous home merchandise. He said, "We're trying to see how it [tabletop] trends. . . We'll be keying in on holidays. . . and tapering down on summer."

This move is apparent in its recent fall catalog. Formal dinnerware is more prominently displayed in the opening pages of tabletop as opposed to its placement in previous books. Other evidence includes one spread which debuts a holly-decorated porcelain dinnerware set, retailing for $99.99. Additional items on the spread include gold-plated flatware (48-piece set at $99.99), and a Queen Anne silver chest (at $139.99).

Despite the move toward tabletop, Pellenberg said that Domestications does not intend to carry a full line of tabletop items. Buyers "are looking for great looking shapes and patterns," he said. Items that meet these criteria, and that mesh with its home textiles by targeting the promotionally minded consumer, will be added to the catalog.

Domestications focuses on dinnerware, although it offers several flatware sets, stemware and tumblers. Not surprisingly, however, Pellenberg noted the bulk of the tabletop business is in 48- to 67-piece dinnerware sets.

Prices range from a high of $99.99 for a 48-piece porcelain selection to $19.99 for service for four in a glassware set. (Service for eight in this style retails for $29.99).

Stoneware sets, too, are promotionally priced. One set called "Dulcie" by Tableworks is offered in a 20-piece set at $39.99 or a 40-piece set at $59.99. Taking advantage of consumer interest in coordinated tabletop ensembles, matching items in the selection includes mugs, mug rack, utensils and holder, napkin holder, salt and pepper shakers, spoon rest, trivet, covered sugar, creamer and cookware set.

Many tabletop items also feature bonuses as added incentives for purchases. For example, one selection in the fall catalog states: "Bonus: When you buy Briar Rose (dinnerware for eight), you will receive as your free gift a 3-piece hostess set with gravy boat, and salt and pepper."

According to Pellenberg, these incentives work. They appeal to the catalogs' customer, who is price-conscious due to her "white-sale" mentality.

Demographically, director of market planning and research for Hanover Direct, Laurie Robertson, further defined Domestications' customer as female, in her mid-40s, college-educated, married and with no children at home. She (the customer) works and has a household income of approximately $40,000.

Domestications publishes four seasonal catalogs a year. Its parent, Hanover Direct, also publishes Tapestry and International Male catalogs. Some of the merchandise in these catalogs overlaps with Domestications.