Domestics - alive with fashion and coordination - discount stores, top-selling category - Hot Growth Categories

Discount Store News, Oct 2, 1995

Gone are the days of vanilla-looking bedding, bath and kitchen accessories. Domestics is a fashion accessory business complete with style, romance and a touch of whimsy.

Coordination is primarily responsible for domestics' evolution from a commodity to a fashion business. Help also came from a crop of new products like casual slipcovers, window treatments, furniture throws and decorative accessories that have created excitement at the store level.

Add to that the fact that domestics is not only getting prime retail space in the store, but is also acting as an anchor around which other home decor categories like RTA furniture, lighting, framed art and accessories are being positioned.

It's no wonder that the retail industry is in hot pursuit of domestics and its cross-over potential.

This increased emphasis is not limited to discount stores alone. In fact, home furnishings superstores are dotting the map in increasing numbers. The Home Depot recently debuted its third EXPO Design Center, a 150,000-sq.-ft. store devoted to upscale home furnishings and interior design products.

While sales for the category were relatively flat over the past year, $7.62 billion in '94 versus $7.52 billion in '93, 18% of industry executives at the top discount and specialty stores named domestics as the second most promising growth category over the next 12 to 18 months (right behind computer software/accessories), according to research conducted exclusively for Discount Store News.

And buyers were especially optimistic about the future of domestics, with one-quarter naming it as one of three categories with the most growth potential. Other advocates of the category included one in seven vice president/general merchandise managers and one in eight president/ceos, the survey reported.

"The consumer is historically paying more attention to their home than ever before. At one time, towels were a commodity item, now they are a fashion item. We are seeing more customers who change the decor in their kitchen eating area three and four times a year to reflect the seasons. Consumers now approach domestics as a way to add color, dimension and interest to the home," said Bill Shepard, president of Pacific Linen, a Seattle-based chain of 52 linen superstores.

Retailers, too, view the category as a way to incorporate fashion into the stores, an attribute the now-ailing apparel category once provided. Others see it as a means of differentiating themselves from a growing number of competitors that have jumped on the bandwagon.

Over the past few years, national retailers like Target, Kmart and Wal-Mart have stepped u efforts in domestics by creating by creating stylized endcap displays, fully coordinated programs and in some cases, instore bedding vignettes. Similarly, regional chains like ShopKo, Jamesway and most recently Clover, have paid homage to the strength of the category by making it a focal point of the chain's strategy going forward.

"The strength of domestics is inherent in its perceived value. Consumers perceive these products as offering value for the price," said Jim Munro, division vice president, director of marketing at Fieldcrest Cannon. "Retailers are responding by devoting more space to the category and offering many more new product categories than they have ever done before."