Kits key in discounting crafts - Home Products

Discount Store News, March 4, 1991 by Mary Ellen Kelly

Kits Key in Discounting Crafts

Craft sales are mushrooming at discount department store chains and specialty fabric stores as these outlets woo shoppers away from independent yarn and craft dealers.

The shift in where crafts are available--and where consumers are shopping for them--is expected to prompt craft supply manufacturers to become more aggressive in producing craft kits.

While independents were able to take the crafter by the hand and show her what materials and tools she would need to complete her craft, full-line discounters and specialty chain stores generally do not have the manpower for such personalized service.

"We're definitely seeing an increase in the portion of business done at discount and chain specialty stores at the expense of the independents. As a result, more manufacturers are producing products in kitted form," said Susan Brandt, director of communications with Hobby Industries of America, Elmwood Park, N.J.

The HIA's latest biannual study shows independent retailers slipped from second to third place among the top retail outlets for craft supplies.

While competition for the craft supplies shopper continues to escalate, the good news for crafts retailers is that the number of households that have at least one family member involved in a craft project jumped to 77% last year, based on the HIA's nationally projectable study. The level had been 64% in 1988 when the study was last conducted.

The study found that the major reason a consumer undertakes a craft is for gift-giving. The most important attribute of a store when shopping for supplies is merchandise selection. Availability of salespeople is a close second.

The demand for customer service gives most independents and chain specialty stores a leg up on discounters. But discounters as a group tend to be better equipped to monitor demand and move customers through the checkout; unlike independents and chain specialty stores, discounters are more apt to have computerized point-of-sale equipment.

The Yellow Ribbon Craze

Virtually all craft and fabric outlets report traffic levels continue to be fueled by the war in the Persian Gulf. Sellouts of yellow ribbons to show support for U.S. troops have led shoppers to buy yellow fabrics, silk flowers and other suitable replacements.

In addition, red, white & blue merchandise is in high demand. While most of this merchandise is fairly low ticket, it is high margin. Sales volume is also being spurred somewhat by customers who are buying ribbon by the spool instead of by the yard, retailers said.

"Patriotism is big business in the stores," said Warren McClure, president of Rag Shop stores. "Our customers want yellow and red, white & blue fabrics, ribbons and silk flowers, and it's our job to provide that for them."

The chain operates 42 stores along the eastern seaboard, with plans to open another six this year. The stores average 7,500 square feet.

Echoing these sentiments, Tom Fisk, ribbon buyer at House of Fabrics, Sherman Oaks, Calif., said business exploded from the moment the U.S. troops began air raids during the third week of January. "These days I spend half of my time working on red, white & blue and yellow ribbon," he noted.

The 610-unit fabric and craft supplies chain would normally merchandise a 30-inch wire tray of yellow ribbon at this time of year. Now all stores carry four or five times as much, and as much as 10 times more in the chain's larger volume stores.

"We've definitely been out of stock, but shipments are enroute to stores as we speak and we will do our best to stay in stock," said Fisk.

House of Fabrics, like many retailers, is creating a patriotism display at the front of the store to include red, white & blue and yellow merchandise and other items. "We'll soon be carrying a lot of things a fabric store normally would sell," Fisk said, including U.S. flag T-shirts, lapel pins, patches and other goods.

At Jamesway, the New Jersey-based discount department store chain, sales of yellow and flag colors are "sensational," said buyer Tom Draves.

Draves added that, like other retailers, Jamesway has had a hard time keeping in stock on these items. Stores are currently setting up about a 16-foot run of various merchandise with a patriotic theme in a seasonal swing area near the front of the store. Ribbon and related craft items are being incorporated into that section, Draves noted.

Ira Kleinberg, president of Chicago-based Reliance Trading Corp., said the vendor's instore service troops are currently assembling patriotism displays with the company's silk flowers, baskets and related items. "The yellow ribbon craze is incredible. What had been one of the slowest selling colors is now at the top. And because people often can't get their hands on yellow ribbon, they're more than happy to buy yellow silk flowers instead."

The Gulf War also has affected Kleinberg's business in terms of retailers visiting the firm's Hong Kong showroom.

"About 30% to 35% of our customers didn't go to the Orient this year, or cut short their trip," Kleinberg said. As a result, the company brought all of its sample products to New York City last month so retailers attending Toy Fair would be able to review the new lines.