Discounters make room for closet organizers; manufacturers roll out new space-saver kits to maximize storage

Discount Store News, Jan 15, 1996

NATIONWIDE DSN REPORT -- Discounters are beginning to take more cues from specialty stores when it comes to merchandising closet organizers.

The addition of loose-stock, smaller wire pieces and more specialized kits are increasingly being made available to discount store consumers, especially as leading industry suppliers unveil more mass-targeted product at this year's International Housewares Show to be held at the McCormick Place, Chicago, Jan. 14 to 17.

The closet storage category is growing 12% annually, and U.S. households collectively have about 576 million closets, according to Ocala, Fla.-based Closetmaid.

"The closet organizers/storage category is a very important segment for us," said Hills buyer Steve Hudon. "While the home centers are moving bulk, Hills is selling kits for bath storage as well as individual pieces, which are performing well. There is a demand for customizing at a reasonable price," he added.

Although Hudon noted that he was seeing more boxed product than loose stock, new trends seem to be emerging.

"Target, with its entire aisle--24 ft.--of open wire organizers, has set an example that has influenced other retailers," said merchandise manager Lindsay Klebenow of Lee Rowan, a Fenton, Mo.-based division of Newell.

Ames concentrates its closet storage merchandise within housewares and considers the category strong "from a sales and profit standpoint," said Jim Aglio, vice president, general merchandise manager, home.

Most of Ames' and Hills' products come from Lee Rowan. New products from the manufacturer will focus on small wire organizers that require little or no installation.

Trackables, a minimal-installation line of wall-rack products, is segmented into four categories for closets in the kitchen, garage, entertainment room and bedroom.

Hook Hang & Store, Lee Rowan's second major introduction, is a takeoff on wire shelving used for maximizing pantry space.

Baskets or spice racks are designed to hang below a shelf, yet still provide vertical stacking room between shelves.

The company segments this line for use in pantries, clothes closets and garage/utility rooms. Each item retails between $3 and $10, and boxed sets are priced between $15 and $30.

Lee Rowan is counting on its 30 skus of Space Solvers, an open-stock wire organizer line sold in sleeves, to make a big splash at mass. "This is where we see the discount stores really expanding their presence and offerings," Klebenow said.

An example of a Space Solver is a telephone/answering machine organizer big enough to hold a telephone, answering machine or phone book, note pads and pens. All Space Solvers should retail under $12. Most are under $7.

Closetmaid recently adopted a room-by-room approach to merchandising. Introductions at this year's show focus heavily on garage storage.

"With consumers trending toward gardening, do-it-yourself investments, home fitness and home improvement, Americans rate the garage as the No. 3 room for storage needs," the company said. The $150 million garage organization industry is growing at a rate of 8% to 10% annually.

Closetmaid's garage introductions range from hooks designed to hold hoses, tools and brooms to a fold-away shelf that can support a bicycle helmet, air pump and water bottle. Kitchen, bathroom, laundry/utility and closet are among the segments.

Hills buyer Hudon mentioned that corrugated storage is also performing well due to more fashion prints and better printing on the boxes. Manufacturers are providing more merchandise tools for in-store displays as well as for strong point-of-purchase, he said.