Hardware tools up with private label needs to hammer home warranty - Kmart's hardware departments - Kmart Power Merchandising

Discount Store News, Feb 21, 1994

In its hardware department, Kmart is placing the thrust of its emphasis on its Benchtop private label line of power and hand tools.

It is already stocking 130 skus of mechanics' hand tools and carpenters' tools, as well as an estimated 30 skus of power tools. The introductions are coming at the expense of Stanley in hand tools and Black & Decker in power tools. A Benchtop steel measuring tape, 25-ft. by 1-in., is priced at $7.44, compared to $9.99 for a comparable tape from Stanley.

The retailer has no plans, however, to expand the private label line to other hardware categories, such as paint, electrical or plumbing supplies.

As Sears does with its Craftsman mechanics' tools, Kmart offers a lifetime replacement warranty if a tool breaks. Is is failing, however, to capitalize on that warranty in its marketing program, and a surprisingly large number of Kmart customers say they are unaware of its "Guaranteed Forever" warranty.

In a unique merchandising wrinkle, Kmart is marketing a number of Benchtop power tools as a package, with some hefty price points. For example, Kmart is stocking a Benchtop cordless tool set consisting of a drill, palm sander and jig saw at $99. Other Benchtop power tools include: cordless 3/8-in. drill, 7.2 volts, $99.88; D handle drill, $54.97, random orbital sander, $48.97; and reciprocating saw, $54.97. Kmart also is packaging a Stack-On brand 20-in. tool box with a 74-piece Benchtop socket set for $59.96.

Kmart promotes its paint section as "America's Paint Store" and stocks it exclusively with two national brands, Glidden and Dutch Boy Kem-Tone. It offers custom paint mixing to customer specifications.

Based on customer surveys, Kmart finds that 16% of its customers would buy more paint at a remodeled store, compared to 6% who said they would shop more for paint at a store that hasn't been renovated.

On a negative note, however, surveys that Leo J. Shapiro conducted for DSN found that Kmart customers rated the hardware department more highly in 1990 than they did in 1993.

In 1990, customers gave a 5.62 mean rating to Kmart hardware, in all stores, compared to 5.29 in a follow-up survey last year. In remodeled stores, the mean rating they gave Kmart hardware declined to 5.56 last year from 5.75 three years earlier. The mean scores are based on ratings that range from 9 for "great place to shop" to 1 for "never shop."

Northeastern customers rated Kmart hardware the highest, 5.78. Midwestern customers rated it 4.96, Western customers, 5.07, and Southerners, 5.36.

Of customers at stores that had been completely remodeled, 15.5% rated hardware as "great," about the same as customers of new stores, 16.2%. Among customers of non-remodeled stores 15 years old or more, only 2% rated the hardware department as "great."