Holy bright idea! It's Ward's new home fashions concept - Montgomery Ward and Company Inc - HomeMarket Trends supplement

Discount Store News, Oct 16, 1989 by Pete Hisey

HOLY BRIGHT IDEA! IT'S WARD'S NEW HOME FASHIONS CONCEPT

Montgomery Ward may not be, like Batman, fighting off the forces of darkness. But in an increasingly competitive and recently softening home fashions environment, it is fighting for a larger share of what seems to be a static market.

And rather than a utility belt, its main weapon will be Home Ideas, Ward's aggressively priced, brand-intensive home fashions concept. To date, only the chain's new "specialty mall" prototype in Tucson, Ariz., features the complete concept, but four more of the new prototype format are due to open in November. In addition, over 300 existing locations are being retrofitted over the next year.

According to Fred Daniel, a 35-year Sears veteran who was named vice president of Home Ideas in early June, the final form of Home Ideas is still being fine-tuned.

"We're going to be exiting a few businesses, like dolls and figurines, so that we can concentrate on categories our customers say they want, like more lighting products," Daniel said. "Figurines has been a pretty good business, but our walls are inelastic, and we need to expand assortments in some other areas."

Ward's corporate goal is to be the dominant retailer in its markets in its five major businesses. That holds true for Home Ideas, Daniel said, adding that dominance means not only deep selection, but the lowest price as well.

"We will remain very aggressive in price," he said, "while continuing to add products and to concentrate on more fashion-forward items."

Over the next year or two, Ward will not be "upscaling," which seems to be the near-universal trend among mass merchandisers, Daniel said. "Certainly we're looking for more fashionable goods," he added, "but goods that fit what our customer needs. We serve the family, and we're not Marshall Field, so we're going to hold our price points."

In selection and in price, the Home Ideas in Tucson was most impressive. The department ranges over the entire rear section of central store in the "mini-mall" prototype. It features: * a massive towel wall; * a large (and soon-to-be-expanded) domestics area; * a full self-service window treatments department (Ward has withdrawn from the custom business); * a relatively modest housewares selection (also scheduled to be expanded); * an extensive line of lighting products and ceiling fans; * bedding and living room furniture positioned in the infield of the racetrack-like department.

Home Ideas, which is 15,000 square feet in size, also features a dominant selection of brand names. Virtually every major home goods supplier is represented including Cannon Beacon, WestPoint and Stevens. Other specialty suppliers include Dundee, Bibb (with the hot Ninja Turtles product), Dan River, Arley, Sunbeam, Bed Sack and many others. Home Ideas also features a wide selection of private label goods under a variety of brand names including At Home and Slumber Cushion.

The window treatments department features as wide a selection of national brands, including Levolor, Kirsch, Joanna, Burlington, Carole Fabrics, Jencraft and soon a selection of Hunter Douglass goods serviced regionally by WinGlo and Madden.

All window treatments, in accordance with Ward's everyday low price strategy, are sold at 40 percent to 50 percent off (depending on brand). There will be special sales from time to time, but the discount will always be at least 40 percent.

Home Ideas, like most of the new prototype, is equipped with flexible, portable grid display units. According to one store employee, a change in the racks which might have taken two or three days can now be accomplished in about three hours.

The racking also provides a large number of face-out opportunities, to attract shoppers as they move along the racetrack. On the infield, recliners are faced out toward the racetrack, and worn-out shoppers regularly take breaks there.

While most merchandise is the same, store to store, Home Ideas alters its mix in fashion-sensitive areas according to regional tastes.

"In areas like comforters, we can and do tailor to specific markets," Daniel said. "As much as 20 percent of such goods vary by location. Most of our merchandise is aimed at a broad market, and that's pretty much the same everywhere."

"However, we add to our color palette in many markets. For instance, in Florida and California, (in fact, any market that is warm and near the water) there are very different demands in terms of color and styling. We try to be sensitive to that. However, while country styling may sell best in cooler climes, it's there in California too."

Basics like bedding and small appliances are pretty much consistent from market to market, he added.

And how has Home Ideas been doing financially?

According to Daniel, sales and profits have been very strong. "We have experienced double digit increases in both sales and profits," he said. "Although all areas have done well, bed and bath sales have been extraordinary and consistent across the country."

As a result, Daniel said that Ward will probably expand the bed and bath area in the near future.