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Discount Store News, Jan 8, 1990 by Mary Ellen Kelly

Houseware Makers Brake Prices; Branch Out to New Categories

CHICAGO -- Housewares retailers will get a break from rising prices this year as manufacturers report no major hikes for 1990, after two consecutive years of significant price increases.

Vendors exhibiting at the International Housewares Exposition here in the Windy City said housewares prices in 1990 will remain relatively stable--other than minor adjustments of about 3 percent for inflation.

Adding to the downward pressure on prices: a leveling of raw material costs, with some vendors even reporting a drop in the costs of certain types of plastic; and lackluster consumer spending in the fourth quarter, giving rise to the fear that shoppers will defer a purchase rather than dig deeper into their tapped out pockets.

Nevertheless, vendors appear confident that housewares volume will grow during 1990. Many are projecting double-digit sales growth this year. Retailers, on the other hand, were more conservative in their sales estimates.

At this year's show, a number of manufacturers will be unveiling new products that were previously beyond their traditional scope as the term "single source vendor" becomes an industry buzzword for the '90s.

Examples include clock manufacturer, Burwood Industries' launch of serving-ware; tray table vendor Quaker Industries' debut of ready-to-assemble furniture; clock maker Chaney Instrument's new gift-oriented desk sets; and closet organizer vendor Whitney Production's new line of corrugated home office filing cabinets.

Despite the resignation of National Housewares Manufacturers Association president Jay Spaulding last year, the association has been far from rudderless. It recently announced plans to move its annual summer show from Chicago in July to Atlanta in September. The NHMA expects to name a successor to Spaulding by early spring, said Kimberly Rawn, director of communications.

At this winter show, both buyer and vendor registration figures and booth-count are up slightly from last year. An influx in the number of international buyers has more than offset the effect of retailer consolidation. Buyer attendance is expected to reach as high as 13,000, said Rawn.

PHOTO : Housewares at Stuarts, New Bedford, Mass.: Buyers at this month's Housewares Show will

PHOTO : find prices stabilizing after two years of increases.