Cookware, storage steer housewares growth - Hot Growth Categories

Discount Store News, Oct 2, 1995

Retailers have high expectations for growth in the housewares category. The category, which jumped up about 7% between 1993 and 1994 according to the DSN Productivity Report (Aug. 21, 1995, issue), ranked fourth as a hot-growth area in a survey of discount and specialty retail headquarters executives.

This sort of double-digit growth expectancy should open doors for housewares manufacturers (especially storage and cookware makers) eager to serve the discount trade.

There was a strong sense of agreement between the chief executives and buyers on this issue. Of those polled, about 14% of presidents/ceos and 15% of buyers named the segment as a hot area.

Hills president Jack Smailes said housewares, including RTA furniture, is the No. 1 growth area at the regional discounter. "Cookware is up," he said, mentioning that T-Fal gave a great performance.

"I think our in-stock position and presentation contributed to the category's strength," Smailes said, but noted that customers are choosing to devote a great deal of their shopping dollars to items for the home.

"This is a category we plan to push very hard for the fall season," the president said.

In a phone interview, Paul Powers, merchandise manager for home decor at Hills, felt just as passionately about the potential of housewares to drive the chain.

Powers said that if he were to rank the greatest growth-potential categories, "both housewares and furniture would be in the top five."

Two factors are driving the business: cookware and plastic storage, Powers said.

"The cookware strength is a function of increasing customer acceptance of better quality and higher price points in the discount channel, with partial emphasis on strong brands like T-Fal and Revere," he explained.

The plastic storage business has grown dramatically since manufacturers have met high consumer demand for storage solutions with function and value, Powers noted.

"The plastic storage/organization category will continue to grow as manufactures combine function with innovation and fashion," the merchandiser projected.

A buyer from a Northeastern regional concurred. His chain has upped its plastics space by 38% over the previous year. Totes (large buckets that consumers stuff with toys, clothes and even garage paraphernalia) are driving the business, he said. "When the economy is down, consumers tend to buy basics," he said. Customers respond to fashion, the buyer noted, adding that the cranberry colors are either the No. 1 or No. 2 colors in hangers, shelf liners and storage boxes.