Forecast bright for NHMA show; infomercials, juicers key to success of category - National Housewares Manufacturers Assn

Discount Store News, Jan 4, 1993 by Mary Ellen Kelly

Infomercials, Juicers Key to Success of Category

CHICAGO - Discounters and manufacturers are preparing for the Housewares Show here next week with unflinching optimism about the industry's growth prospects in 1993.

The dominant housewares manufacturers emerged from an oppressive 1992 economy on an upbeat note with investments in production and warehouse capacity. Several discount retailers, likewise, said housewares sales in 1992 were strong relative to many other departments, and this has prompted allocations of more housewares floor space in 1993.

Marketing tools like infomercials helped to fuel appliance sales in 1992, especially juicers - retailers said - and many merchants are wondering whether other housewares in 1993 by the expanded television advertising spots.

Chains which have found the infomercial to be a good stimulus for sales could soon see the effects of Corning's experiment in infomercials on several cable TV stations.

In fact, the results of the Corning 30-minute infomercial (offering an exclusive configuration of its Cranberry Visions line) could signal a major change in housewares for 1993 and beyond, prompting more vendors to build demand at discount stores through special television offers.

Jerry Foreman, operating vice president, hard lines merchandising at Nashville-based Service Merchandise, said he expects 1993 will be a year of strong sales in housewares basics, but is also keeping an eye out for "sales blips like there were in juice extractors last year," fueled by "the infomercial boom."

"Electrics and non-electrics have been excellent for Service Merchandise in '92 and we expect a reallocation of floor space to emphasize housewares in existing categories ... We plan to run as fast as we can to keep the housewares momentum going."

Foreman said the Service Merchandise team at the show will be looking for "add-on items to enhance impulse purchases," and expects that health-related housewares such as steamers and better quality non-stick cookware will also be growth areas in 1993.

While juicers were "a real dog" at home decor specialty chain, Waccamaw, according to senior vice president, merchandising, Marilyn Gill, she too has found that other appliances like breadmakers and rice cookers have been selling very well, and anticipates that heavier weight, non-stick cookware will be a winner in 1993 for the Myrtle Beach, S. C., chain as well.

Both Foreman and Gill forecasted a hot tabletop business in 1993 due to both greater emphasis on the category in the store and striking new product introductions.

Venture Stores, O'Fallon, Mo., expects to see a 5% to 7% increase in its housewares business in 1993, especially among hot-selling categories such as floor care, infomercial items, storage and acrylic/lifestyle dinnerware, according to a chain spokeswoman. "Based on the last five-year trend, housewares will grow as a percent of total sales. There tends to be more newness in housewares than in many other hard lines categories," she said.

At Abilene, Kan.-based Duckwall-ALCO Stores, David Hayes, hard lines divisional manager, estimated that the regional discounter will also see increased business in housewares - between 3% to 5% - driven by the ready-to-assemble furniture category, the availability of special order capabilities at the chain, new seating merchandise and plastic housewares. Intensified advertising was mentioned as a key part of the game plan to spur sales at both Venture and Duckwall-ALCO.

The manufacturing community - especially those who are already dominant suppliers to the discount industry - are forecasting that 1993 will be a year of double-digit percentage sales increases and many have made investments in new facilities to handle the anticipated uptick in demand.

Tom Conley, executive director and coo of the National Housewares Manufacturers Association (NHMA) noted that "The majority of our members anticipated finishing 1992 with improved sales and profits." He was referring to statistics from the NHMA's State of the Industry Report, and added that "The housewares industry is modestly optimistic about 1993 growth ... Today we see continuing interest in environmentally friendly products, products which promote home and street safety, child safety products, health-oriented products, ergonomically designed products for an aging population and well-designed products for an increasingly sophisticated consumer."

Top manufacturers, representing a wide range of housewares categories, were upbeat about the Housewares Show and sales in '93.

In the electrics area, Frank Lindsey, vp, marketing at Conair Corp., noted that 1992 was a good year for both the personal care category and Conair in particular and he expects that 1993 will be even better. "The consumer is willing to pay for additional features," he said, giving the example of the company's Euro line brought into stores earlier this year which featured 1600 watts, "cold shot" to "lock in" style and other features.

At the Housewares show buyers will be able to view the new "90210" licensed hair dryers, hair setters and make-up mirrors and appliances with a new feature: they automatically turn on when picked up and shut off when put down.