Glitz on a budget: A&S homes in on Manhattan - home furnishings at Abraham and Straus department stores - HomeMarket Trends

Discount Store News, Jan 8, 1990 by Faye Brookman

Glitz on a Budget: A&S Homes In on Manhattan

To accommodate its core of middle-class customers, A&S has tempered the upscale thrust of its new home department

Despite the dramatic marble floors and the strains of piano music that drift up through the opulent escalator atrium, the home floor of the new Abraham & Straus store on Manhattan's Greeley Square features a mix that has not bypassed the retailer's middle-class customer.

The new A&S is the anchor of A&S Plaza, an urban vertical mall with space for more than 100 shops.

Although the other seven floors of the 310,000-square-foot store have a decidely upscale and fashion tone, the home area, located on the sixth floor, presents a carefully edited mix that runs the gamut in terms of price points. Dinnerware sets, for example, range anywhere from $40 to upwards of $200; towel price points open at $4.99 and climb to a high end of $15.

The home department unveiled at the September 14 grand opening differs, vendors said, from Federated Department Stores' original concept. Since this is the 15-store operation's first foray into Manhattan, original plans called for a selective mix of pricey offerings such as Orrefors crystal and Mikasa's Signature line. This type of upscaling has been a priority for A&S' neighbor, Macy's, a move which many suppliers said has caused some shoppers to go elsewhere. Many think consumers will venture across the street to A&S.

"Instead of only upscale, they did it right," observed Bob Funabashi, regional sales manager for Mikasa. "A&S has a very specific niche and they know that when you try to just serve the upper-end, what you do is confuse loyal customers."

The effort to serve the middle market fills a void in Manhattan's market, observed Walter K. Levy of Walter K. Levy Associates. He reasoned that SoHo, 57th Street and Columbus Avenue serve the upper-end market. "The thing that's really missing in New York is more mid-market. That's where A&S hopes it will fit in."

With only 35,000 square feet to create a fully stocked home "store-within-a-store," A&S officials decided to cull some typical home merchandise classifications from the Manhattan unit. Gone are window treatments, formal dinnerware and silverware, and furniture.

"They went for the areas that will give them the sales per foot they need," explained Charlie Arnold, vice president and national sale manager for Royal Family. "I think they've made the most of the space they have."

Operating in Manhattan is not cheap--it cost between $300 million and $400 million to rebuild the store, the former home of Gimbels.

The centerpiece of the floor is a dazzling gift department. Located off the mall entrance, giftware features delicate Waterford Crystal, fine Lenox china and even expensive Lladro figurines. Within the gift area, however, are more affordable offerings such as a Toscany salad set priced on sale at $19.99.

To make gift shopping easier--a goal at the store--pre-wrapped items are available. "Crystal can really make a presentation," said Funabashi. `I think they made the right decision with gifts and I believe the department is paying off." One of Mikasa's best items within the area, he said, is a $35 clock.

To the right of the gift area are housewares, dinnerware, boxed sets, seasonal dinnerware and glassware. Behind that, just off of the escalator, is consumer electronics. Flanking the CE area is a full bedding department featuring brands such as Serta, Simmons and Stearns & Foster.

"Even though space is at a premium, a department like bedding is important because big sales in this area can really drive customers in," explained Funabashi. A recent one-day sale featured a Serta twin mattress or boxspring that was regularly priced at $100 offered for $39.95. A department like window treatments, in comparison, does not generate sales traffic and is a slow build.

Adjacent to beds and mattresses are bedding items. First are wall displays of comforters housed on Lucite fixtures perfect for self-service. Two fully dressed mock beds lead customers into sheets. Brand names include Wamsutta, Dan River, Springmaid, Utica and Laura Ashley. According to some vendors, this area is strong for A&S, especially in comparison with Macy's, which has moved heavily into private label such as its Jennifer Moore brand.

Bedding segues into bath, where towel selections include Fieldcrest, Royal Velvet and Cannon. There are visually appealing displays on the walls and on top of fixtures. Cross-merchandised within the area are bath accessories and potpourri. This department curves around into table linens, again housed in fixtures suitable for self-service, although sales help is never more than a few steps away.

There is breadth in pricing, but some selection is limited. No formal dinnerware can be found, mostly because of the space needed to openly display the patterns. To make a statement, suppliers said, at least 100 patterns are often needed, as is the case in other A&S stores. The same holds true for flatware.

A&S has maximized the limited space in the home area by using movable cube fixtures. The cubes can be changed easily and department allocations and adjacencies can be shifted.