Glassware goes mass - mass market retailers

Discount Store News, Dec 5, 1994

After years of dabbling with inconsistent glassware and serviceware presentations, mass market retailers are busy setting their merchandising tables.

By implementing strong day-in, day-out programs, discounters are building glassware into a strong year-round category, instead of just a holiday business.

Some, such as Target, are leaning heavily toward private label assortments, presenting attractive value pricing on ensemble glassware collections of dinnerware and tumblers. Dollar General is using glassware as the centerpiece of its entire housewares department, while Caldor places glassware on the wall to lure customers through its housewares department.

"Our glassware business is very good right now. In fact, it's good enough to make room for more glassware suppliers," said Steve Hudson, housewares buyer for Dollar General.

In 1993, according to market sources, it was estimated that discounters enjoyed a 52% share of the business, up from 50% in 1992, while department stores' share held steady at 12%. The serviceware category edged up 8.1% from $185 million to $200 million between 1992 and 1993--the most recent year numbers were available.

The entire tabletop industry, including crystal and china, is pegged at $2.1 billion with yearly sales increases in the 7% range, according to surveys of members of the National Housewares Manufacturers Association.

Discounters are extending their offerings in glassware at a time when consumers are investing more in entertaining at home.

"Cocooning and entertaining at home is building the business," observed Stuart Sutley, product manager, servingware for Anchor Hocking.

Paramount in building the business has been the realization by retailers that a full array of items must be carried. Cherry picking select stock-keeping units can make weak presentations. Now it is not uncommon to find discounters extending their selections to include salad bowl sets, four-piece salad bowls and glass dinnerware, in addition to cake domes or chip and dip pieces. They've also varied their selection of conventional tumblers.

Color Sets the Tone

Getting in tune with the market's hottest colors has been tantamount to building sales. Wal-Mart Stores, for example, has been aggressively adding color to glassware, counting heavily on hues such as emerald green and cobalt blue.

Manufacturers, of course, are also capitalizing on the trend toward colored goods. Mark Glazer, vice president, sales and marketing for Crisa Corp., noted that today's most popular colors are cobalt blue and cranberry. An increase of yellow and amber is expected to be seen in 1995.

"We need to have the same colors and styles as soon as the department stores," a spokesman for Kmart said. "Discount store customers' taste levels are higher than ever." Kmart has been upgrading its selection to feature more open-stock glasses. In its Auburn Hills, Mich., prototype, Kmart has emulated specialty store Crate & Barrel's in-store look.

Roger Shandley, senior buyer for housewares at York, Pa.-based McCrory, also believes in giving mass market customers the chance to buy more sophisticated merchandise. "The designs have gotten more interesting for our customers," he said. For example, he added black glass dinnerware from Crisa that sold well to McCrory's consumers.

Aiding retailers' merchandising of glassware are vendor programs using Spaceman, a computerized planograming service that allows retailers to play "what if" games with their displays and assortments. Manufacturers have been using POS data to illustrate to retailers what they may be missing by not stocking glassware all year or not stocking key items.

Manufacturers have also made it easier for mass marketers to sell glassware in a self-service environment.

At McCrory, Shandley lets packaging that depicts the product inside tell the story to consumers.

Added value is also spurring sales.

For example, Anchor Hocking's Duets line has pieces that perform dual functions. A cake plate becomes a chip and dip bowl, a 10-inch bowl becomes a serving tray and a candy dish and cover can double as a single-serve casserole.

Another way to drive sales at discount stores is to cross-merchandise glassware. Caldor ties in glassware with place mats, while McCrory is going for impulse sales with glassware cross-merchandised with mixing bowls and tea kettles.

'Tis the Selling Season

Retailer efforts have kept sales strong all year. "That's why we made it the focal point of our housewares department," explained Hudson.

But discounters are still enjoying seasonal peaks. "Sales from glass dinnerware sets peak dramatically during major seasons with Christmas being the strongest buying time," Shandley said.

Discounters have been able to turn events such as Valentine's Day, Mother's Day and Easter into glassware-selling seasons. Even the June wedding season has become big for discounters.

Target Stores, for example, is contemplating adding a bridal registry, sources said--a move that could put a sales spike into glassware.

Despite the inroads discounters have made, glassware departments are still in need of more attention. During recent store checks, for example, there were out-ofstocks in key glassware products. Housekeeping is often lacking in glassware areas with boxes turned up on ends and sometimes left unsealed. Nevertheless, the category represents incremental sales for discounters. If retailers can more effectively merchandise the category, their efforts will be reflected at the cash register.