New licenses center stage at SHOPA show

Discount Store News, Dec 8, 1997 by Mike Troy

Atlanta -- Retailers unable to achieve sales increases next year in the stationary, school and home office products categories and flexible merchandising options from which to choose at the recent School and Home Office Product Association's annual trade show here.

Licensing continues to be a huge part of the SHOPA show, with every exhibitor seemingly offering some manner of licensed merchandise. On top of the heap for 1998 were two films, "Small Soldiers" from Dream Works and "Quest for Camelot" from Warner Bros. Both are expected to be powerful draws. The movies are seen as the respective studios' first large-scale animation efforts and a test of their ability to crack Disney's stranglehold on all things animated.

Both films are releasing early enough in the year to get a holiday 1998 sales boost form the video release. Also due for a spring 1998 release is "Godzilla" from Sony's TriStar Pictures. The studo isn't allowing public use of the giant monster's image until 10 days before the movie opens in May in order to build suspense. The new Godzilla, according to those who have seen portions of the movie, is a leaner, meaner reptile than his predecessor in order to appeal to boys ages 4 to 11.

Another property tied to 1998 release in "Babe and Friends" from Universal Studios. The original "Babe" movie was a huge success and grossed $250 million worldwide, but had few licensed tie-ins at retail. This time around, Creative Expressions, At-A-Glance, Gibson and Impact have signed on as licensees.

Nonetheless, the most pervasive licenses at he SHOPA show were Warner Bros. Looney Tuens characters and its other properties such s Cartoon Network. The Land Before time Collection form Universal is also considered an evergreen, and the already popular Rugrats-related products could be in for evergreen status following next fall's release of the Rugrats movie.

Licensing was a general theme across all categories at the show, but retailers also got to see an expanded offering of educational products from vendors looking to tap parental desires to give their children and edge.

American Greetings' bold push into the category last year with the creation of its Learning Horizons division was modified somewhat this year. The company continues to have an extensive product assortment capable of filling a 28-ft. planogram, however, this year and endcap program, holiday season floor stands and smaller planogram assortments were offered.

Educational products is a category that has quickly attracted competition. Looking to grow its business in the company was already familiar to mass retailers when it bought American Education Publishing and the Brighter Child brand 18 months ago. This year, Landol was acquired by the Tribune Company. In addition to offering numerous licensed educational products, a Landoll spokesman said keeping price points under $5 is also essential to selling educational products at mass.

A somewhat different approach is being taken by McGraw Hill. The company is no stranger to education, but is relatively new to the mass market. "Patents that are interested in their childrens"' education are willing to spend quite a bit of money on it,' said a McGraw Hill spokes man. For now, the company's products are limited to retailers such as Barnes and Noble, Borders, Zany Brainy and others. However, a new licensing deal that would allow McGraw Hill to use Looney tuens characters on efforts at mass and was close to being finalized at the show.

A new player to the educational arena is At-A-Glance. Best known for its planning products, the company debuted its Think-Its brand as "the fun way to learn.' The assortment of flashcards, calendars, puzzles, activity boards, magnets, games and workbooks are available in a variety of merchandising vehicles and can be contained within a 4 ft. section on an endcap.

Emerging new categories such as education and the excitement of new licenses overshadowed other equally important -- yet less evident -- trends. One of the most significant involves manufacturers broadening, their product lines or acquiring companies to offer products across several categories.

For example, Elmer's is looking to tap the equity of its brand by offering the Squeeze Creations line. The product can be used to decorate T-shirts, make window stickers or produce colored dough (when combined with the flour, and water).

Fiskars, best known for its scissors, is also expanding its presence in the arts and crafts area with its Creative Works line of tempera markers, tinted modeling clay and glitter glue pens.

Binney & Smith's Crayola brand has also been expanded to include sponge, finger and water color paints. Slated for launch n April 1998 is a dry-erase board with markers, activity books and travel games. The overlying trend throughout the arts and crafts area is an emphasis both no mess and ease of clean up.

Another broad trend was a greater sensitivity by manufacturers of the space constraints and in-store merchandising issues facing retailers. Endcap fixtures and rolling display carts with locking wheels were offered by vendors as a means to secure initial distribution or seasonal placement. Cut case boxes for high velocity Back-to-School products which simplify in-store replenishment were also prevalent.