Finding space for storage - Category Update: Housewares

Discount Store News, Nov 4, 1996

One of the many acts of comedian George Carlin centers around "stuff" and how people not only have too much stuff, but how they never ever have enough room to store all their "stuff." Instead, people shove their "stuff" in over-filled drawers and bury it in packed closets.

Perhaps someone from the closet and storage industry should contact Carlin and tell him the good news: Consumers have plenty of options for all that "stuff," and they are purchasing those options in quantity. According to the National Housewares Manufacturers Association, the closet and storage market grew almost 25 percent from 1994 to 1995, from $661 million in 1994 to $824 million in 1995.

Manufacturers and retailers agree that the main and obvious reason for the big sales increase is that people are purchasing more items that need to be stored, yet they have no place to store them. "People are buying more and more, and they need some place to put it all," says Don Dolliver, vice president of sales for Atlantic Inc. Steve Robinson, general merchandise manager of housewares for Pamida, which saw double-digit sales increases from 1994 to 1995, says, "No one really has enough space, and so people are constantly looking for storage."

Some consumers may simply be trying to get their homes better organized, particularly after older children have moved out on their own, giving parents more control over where items are stored. "Consumers are in the pursuit of the goal of organization," says Kevin Sweeney, marketing manager for Sterilite Corp. "Consumers really view this as a vehicle to reach that organized state of their home."

Michael Lieber, president of Laminet Cover Company, agrees. "Once customers are in the mode of organization, storage and preservation, they're going to go ahead and buy that extra item," Lieber says.

Consumers have a number of closet and storage products from which to choose--composed of plastic, rubber, canvas, vinyl or wire. Closet storage items include tie, belt and shoe racks; shoe organizers; garment bags; shelving and small bins; drawers; totes and boxes. Some of the items can be easily attached to each other to save space. Storage items include medium- and large-size drawers, totes and boxes.

What items consumers purchase simply depends on their needs. For example, some jumbo wardrobe bags can hold up to as many as 30 garments, but people who live in condos and apartments may want smaller bags that hold only half as many items. A 48-gallon tote--a storage box with handles--is ideal for garage storage, while a smaller 6-gallon tote is better suited for the home.

At both Pamida and Venture, totes are currently the top-selling items. While 18- to 20-gallon totes are selling well at both stores, 30- to 35-gallon totes are also doing well at Venture. "These are exceptionally strong sellers, reflecting a growing trend in the sale of larger-size products," says Marc Gisburne, home organization and basic housewares buyer for Venture. The retailer's price for the 18- to 20-gallon totes is $7.99, while the 30- to 35-gallon totes sell for between $12.99 and $14.99.

Hunter green, slate blue, khaki and purple are popular colors for the totes at both stores, although both Gisburne and Robinson say that color doesn't play a big role in a consumer's decision to purchase a tote. "The item vs. the color seems to drive the business," Gisburne says. "The plastic container is not a `fashion' item."

Maybe. While color may not be the main reason why an item is purchased, it can play a major role in how well an item sells. "You can take a dead product, add color, and it comes back to life," says George Dobiles, national sales manager for Dial Industries Inc.

While many storage products are available in a variety of colors, most closet products are available in neutral colors, particularly white, so that they don't clash with a room's color scheme. The pattern schemes for closet products are changing as solid, plain patterns are beginning to give way to some floral designs.

Manufacturers agree that discount stores are prime selling spots for their merchandise. For example, David Griffith, vice president of Whitmor, says that discount stores currently account for about 70 percent of the company's business in vinyl and synthetic closet storage products.

Lindsay Klebenow, merchandising manager for Lee/ Rowan Company, says that discount stores do a particularly good job with items that are priced $20 or less. "Mass retailers do a great job of selling these items," Klebenow says.

Discount stores weren't always the store of choice for some manufacturers. Craig Moller, vice president of marketing for ClosetMaid, says that home centers used to be the manufacturers' strength, but that changed in the last two years. "These [discount] stores are playing an increasingly bigger role," Moller says. "We decided to be all-wire storage for all people, and so we worked on relationships with players like Kmart and Wal-Mart."

As in many product areas, retailers are narrowing their resource structures in storage products. "We subscribe to the philosophy that you can do business with a lot of people and have a scattering of products, or you can form key partnerships with suppliers and have depth," Robinson says.