Higher-end cookware sales expected to sizzle - at discount stores

Discount Store News, Jan 8, 1990

Higher-End Cookware Sales Expected to Sizzle

Cookware manufacturers--especially those selling higher-quality lines--are more optimistic about 1990 sales than many of their discount store customers. Specialty housewares store sales are more than offsetting frequently flat sales performance at full-line discounters.

As a result, a wide selection of new domestic and imported products, predominantly stainless steel, and to a lesser extent, anodized pieces, are being introduced at the International Housewares Exposition in Chicago this month.

Most vendors estimated price increases for 1990 will average between 3 percent and 5 percent due to raw material price increases.

Rose's Stores, Henderson, N.C., which had reported flat sales during 1989 expects more of the same during 1990. "Cookware continues to be flat. There is no evidence of a resurgence in the near future," said Bob Sasser, vice president, general merchandise manager over home lines.

Hills Sees Sales Gains

In contrast, Hills Department Stores, Canton, Mass., expects sales of higher-ticket cookware to continue to rise steadily. The chain recently reversed a 30-year company policy and now accepts credit cards. Buyer Keith Moore said he has already witnessed greater sales volume at the upper end of his assortment due to the new flexibility that customers have for paying.

"A $60 Farberware set during the week after we started accepting credit cards had phenomenal sell-through. I sold the same set two years ago at a lower price and it didn't sell as well," Moore said. He sees credit cards as a "whole new opportunity to sell another market." Everyday cookware sets priced at $100 might find their way to Hills store shelves this year for the first time.

Among cookware exhibitors, Paul Saxton, president of General Housewares, said his company will debut only one of its new products at the International Housewares Exposition, holding back most new items for launch at the Gourmet Show in San Francisco. A junior version of last year's Magna Wave Roaster introduction will be displayed. The smaller unit, with a suggested retail price of $19.99, will fit into smaller, rectangular microwave ovens than the original.

Corning expects to inject new life into its Visions cookware line with the launch of round and oval bakeware made of the same Visions glass material. Ridges in the glass are identical to those used in the French White pattern. Vista, the line that weds Revere copper bottom cookware with Pyrex lids will be officially unveiled. The company began shipping Vista during the fourth quarter of 1989.

In addition to the new products, Corning has repackaged all of its more than 60 Corningware sku's to make it easier for the customer to identify the pattern of the product. The cartons will have a banner across the top indicating the type of cooking the piece can be used for (range top, broiler, microwave oven, etc.) An inset of the product pattern will be featured on the front, and pictures of the cookware being used will be on the other carton panels.

Richard Keeney, president of New Orleans-based Forever Cookware, said a new anodized roaster imported from Korea has the potential to be a phenomenal seller, along with all of the company's anodized pieces. "Anodized is currently 5 percent of the cookware business but is being sold through 30 percent of the retailers--department stores. There is great potential for mass merchandisers to do tremendous business," he explained.

Richard Cohn, president of Creative Specialty Manufacturing, Highland Park, Ill., said his customers are not expecting 1990 to be a boom year for cookware. Therefore, he anticipates business for his company to be flat this year. "We had a tremendous past few years, but indications from buyers suggest business is leveling off," Cohn said.

Creative Kitchen, Secaucus, N.J., will be offering an extensive line of Cook & Store containers for freezer-to-microwave oven use, according to company vice president, Les Koenig. The 18-sku plastic line are white with slate blue lids. The company will also be expanding its stainless steel accessories. Koenig said the company began attending the Gourmet Show last year and expects to supplement the Housewares Exposition with Gourmet attendance on a regular basis.

Richard Ettinger, chief executive officer with Normandy Distributors, Rowayton, Conn., said he is anticipating sales in excess of $10 million during 1990. Last year, sales volume reached about $7 million. New imports on display at the housewares show include a seven-piece non-stick enamel on steel set from Spain in slate blue, white, black and black & grey combination colors. An anodized seven-piece set from the Far East carries a suggested retail of $70 to $80. Promotional selections priced as low as 99 cents will also be offered.

Seattle-based Progressive International expects 1990 to be a year of 25 percent sales growth, according to Bob Boren, merchandise manager. Good, better and best stainless steel sets out of Korea are among the new products at this show. Priced under $30, $100 and $120, the quality ranges from cookware with copper bottoms; to a "hybrid" set mixing stainless steel pieces with aluminum non-stick fry pans; to a high grade stainless steel with triply bottom.