Upscale settings add luster; study reveals that crystal, silver could find a niche in the discount store arena - tableware - HomeMarket Trends

Discount Store News, Nov 13, 1989

Upscale Settings Add Luster

Discounters are already the toast of the town in tabletop sales, but an exclusive survey conducted by Lincoln. Neb. - based research firm Fairfield Research Inc. for HomeMarket Trends suggests that adding crystal and silver to stoneware and coffee mugs might lead to further cheers, both from discounters and consumers.

A survey of 451 households conducted across the United States earlier this year found that discounters were named more often as the retailer of choice for purchases of everyday glassware, stainless steel flatware, everyday china, melamine dinnerware, stoneware and coffee mugs.

The study also revealed that intensified marketing efforts are needed by most tabletop manufacturers, based on the small number of people who could single out a particular brand they were interested in buying.

Store brands were named more often in some product categories than national brand goods. Private label lines are apparently a viable tabletop avenue for some retailers.

While respondents mostly go to department stores to purchase crystal and silver, there is reason to believe, based on the survey's findings, that they would shop a discounter for these items if they were available.

The study revealed that the majority of people in the market for everyday glassware - a product grouping that consumers buy most often at discounters - were also interested in buying crystal flatware, silverplated/sterling pieces, and other traditionally department store products.

Of the people who said there was a good chance they'd buy everyday glassware during the next year, 85 percent were also in the market for silver merchandise. Those looking for everyday glassware were also in the market for crystal (71 percent).

Theft and breakage are certainly reasons not to stock Waterford or Lenox in a typical K mart or Wal-Mart. But the respondents were interested in buying pieces that were not in the highest price echelons. Consumers said they expect to pay an average of $14.49 per place setting for crystal glassware. For silverware, they expect to spend $20.50 per setting, on average.

These prices seem especially low when compared to expected per setting prices for everyday pieces. Stoneware and everyday china is expected to cost $12 per place setting; stainless flatware, $8; coffee mugs, $3.77 each; everyday glassware, $4.33.

The development of breakage-resistant packaging by manufacturers could help discounters sell crystal and sterling, even though these price points are above the typical tabletop range. The large population that plans to buy everyday glassware - and is also in the market for more formal tabletop items - is likely to go to a discounter for the glassware. While they're there, why not pick up crystal or silverplate, if it is being sold?

Low brand preference for nearly all tabletop merchandise further indicates opportunities for discounters to sell these higher-ticket items.

For instance, only 16 percent of all those surveyed named a brand they wanted in crystal glassware. Even Waterford, the most frequently mentioned brand in this group, was named by a mere 4 percent of the total. Another 3 percent mentioned Lenox.

The top named "brand" for cocktail or wine glasses was "store brand." While mentioned by only 2 percent of consumer, "store brands" tied with Waterford for top brand. Only 10 percent could name a wine glass brand that they might want to purchase.

Among silverplated or sterling silverware products, Rogers was mentioned by 4 percent; Oneida was the preference of 3 percent. While others were mentioned, only 13 percent volunteered a brand preference.

Further opportunities for discounters have been created following Sears' report that it will no longer be in the tabletop business but will focus instead on appliances, furniture, window and floor coverings, domestics and decorative accessories.

The tabletop study showed that Sears was the preferred retailer among mass merchants; it was mentioned more often for all tabletop products than all specialty stores combined. Sometimes it was preferred over K mart. Sears' exit from the tabletop business will no doubt present opportunities for retailers who shared a market with Sears. [Tabular Data Omitted]

Only Sears was ranked higher than K mart for tabletop among the survey population, but only in the four areas of silverplated/sterling, wine glasses, special occasion china, and carving/cutlery.

K mart's most significant dominance in terms of mentions was in melamine dinnerware (13 percent), mugs (12 percent), everyday glassware (12 percent), and everyday china (11 percent). In each of these product areas, K mart was singled out more often than any other U.S. retailer.

PHOTO : Discount stores are consumers first choice of outlet when buying stoneware, according to a new study.