Kmart hammers home image as 'America's tool source.' - K Mart Corp.'s Auburn Hills, Michigan prototype store's America's Tool Source hardware department - includes related article on K Marts paint department

Discount Store News, Feb 1, 1993

Kmart wants to be America's tool source as well as its fashion source.

The discount store giant unveiled an updated hardware/home improvement department in its Auburn Hills, Mich., store that extends the chain's power department focus into hardware and positions it to battle with the nation's hardware stores.

One goal of the new program is to attract more men into the store.

Kmart's latest prototype store features a renamed hardware department, now called Do-It-Yourself, more skus, including some with higher price tags, merchandising presentations that are easier to shop, and display programs that are more user-friendly.

Of particular note in the tool area is the new theme for the area: "America's Tool Source."

Even with the changes, Kmart's focus remains the typical discount store shopper, said senior vice president. gmm, hard lines, Bill Underwood. He stressed that Kmart is not trying to "upgrade" the department beyond the reach of a discount store shopper or compete with warehouse home centers.

"We're not looking to compete with Home Depot or Builders Square. But we are looking at competing with the hardware stores," said Underwood, noting that "we want to attract more men into the store."

Kmart hopes that its new program, which features expanded offerings in hand and power tools as well as accessories will appeal to shoppers who want more than basic hardware supplies and will make them choose Kmart to satisfy those needs. Positioning hardware next to the newly invigorated automotives department should help Kmart recast itself as a destination store for hardware, or at least a place where the men in the family will linger.

Among the most visible new DIY features unveiled at the Auburn Hills store are: * Expansion of BenchTop, Kmart's private label hand tool program, its updated packaging, a new unconditional warranty and advertising support. * A curtailed Stanley hand tool program. * A new Black & Decker power tool merchandising and signage program that provides more product use information to shoppers, plus more expensive power tools than are usually found in a Kmart store.

The most visible of the new hardware programs at Kmart is its Benchtop hand tool line.

Currently, the packaging is being revised from a dark blue and gray with red lettering to a medium blue with red lettering. The new packages have been incorporated into a signage program that alternates with Stanley Tools' yellow signs at the top of the hand tool runs. The impact is obvious to shoppers: breadth of merchandise in both Stanley and Benchtop.

Kmart has 99 hand tool skus under the BenchTop name. That total will swell to 164 skus in March when the program is rolled out chainwide, said hardware buyer Stan Evans.

BenchTop was first introduced to Kmart shoppers at the Sayville, N.Y. store opening in 1991 when Kmart brought the largely automotive hand tool line into the hardware department. Now, the expansion of BenchTop is in full force and covers both automotive and conventional hardware applications.

Unlike the quiet way BenchTop was originally introduced, Kmart will use the airwaves to promote BenchTop this year, said Evans. The discounter will run a minimum of seven ads in 1993, a promotional effort Evans called a "major difference" for Kmart.

The intent of the BenchTop hand tool program has always been to rival Sears and its popular Craftsman line. The difference, said Larry Thompson, coordinator of housebrand development, is that BenchTop was designed to meet or exceed Craftsman standards for quality and be priced 30% to 40% less than Craftsman.

Kmart's advertising program for BenchTop is likely to emphasize the product's quality and price differential over Craftsman. Details on the program have not been released.

One element of the expanded BenchTop program is the newly worded quality pledge. Kmart now tells consumers on the package that BenchTop hand tools are guaranteed for life instead of the former unconditional warranty. This was done for clarity, said Evans Most products are made in the United States.

As a result of the increased emphasis on BenchTop, Kmart is decreasing its reliance on Stanley, a powerful name in hand tools.

As of March, Kmart is eliminating 93 skus in Stanley, from 135 skus to 84 skus, said Evans. The cuts are nearly across the board, including a few hammers, levels, squares, saws and cutting tools. At the same time, Evans said he is adding to the Stanley screwdriver line.

The result of all these changes will mean that Stanley's strongest presentation at Kmart will be in screwdrivers--to 85% of the offerings from 75%--and tapes--to 70% from a mix that includes Stanley, BenchTop and Arrow from just Stanley and BenchTop--where sales for Stanley have also been strongest at Kmart.

In BenchTop, the strength will be in automotive mechanics' tools, sockets and socket sets. In addition, Kmart is adding a line of specialty tools, some hand saws and has already restructured its striking line of hammers, said Evans, noting that he is adding some chisels and punches plus some claws and bars.