Top-of-the-stove items stir cookware sales

Discount Store News, March 4, 1996 by Arthur Goldgaber

NATIONWIDE DSN REPORT -- Overall, cookware was a strong category for retailers in 1995. HomePlace chairman Robert Hurwitz called cookware sales in his stores "nothing short of spectacular."

Industry statistics back up HomePlace's strong cookware performance. Metal cookware, bakeware and kitchenware products set sales records, according to the Cookware Manufacturers Association based in Mountain Brook, Ala. Sales for U.S. manufacturers in 1995 were $999 million, a 4.3% gain over $958 million in 1994.

"Domestic demand for cookware products was up in '95, and export demand increased strongly," said Jeffrey Riegel, president of both Regal Ware and the CMA. "Still, it was a difficult year for the industry, with severe inflationary pressures on many of our raw materials and components."

The CMA divided the $999 million sales total into top-of-the-stove cookware e sales, $740 million (a 74% share of all sales); metal bakeware $22.7 million; and miscellaneous kitchenware, $32.6 million. The CMA separates top-of-the-stove cookware into three subcategories. For 1995:

* Aluminum cookware (both stamped and cast) garnered a 53% share of cookware purchases, with $394 million in sales.

* Stainless steel cookware accounted for a 42% share, with $312 millions in sales.

* Cast iron and-porcelain on iron cookware increased its sales to $32.6 million in 1995 from $24.5 million in 1994 and earned a 5% share.

HomePlace's cookware department competes with both discounters and upscale retailers by offering both "everyday low prices" and a well-stocked department with brands such as Calphalon, Revere and Chantal, which were previously only available at specialty retailers and higher-end department stores. The chain sells three sets of Calphalon: a seven-piece for $299.99, a 10-piece for $415 and a high-end professional 10-piece set for $475. The cookware department also has a fully operational kitchen that gives consumers continuous cooking demonstrations to create excitement for the products.

At a recent visit to a HomePlace store in Sunset Hills, Mo., a cookware salesman said that he has sold a few sets of Calphalon, but the department's most popular items are lower-priced sets such as the Armaral non-stick eight-piece T-Fal Resistal Versailles at $99.99 and a Revere Ware stainless eight-piece (available in either copper clad or aluminum disc bottom) that was marked down to $59.99. The salesman also said that the store's successful bridal registry program is one of the department's main revenue sources.

HomePlace's prices are extremely competitive, with both Target end Venture stores located nearby. Venture's private label brand features a non-stick eight piece cookware set for $29.99 that was marked down to $17.99 during the week of Feb. 3. On brand name sets, it offered the same T-Fal set as HomePlace for $89.99 -- about $25 below the manufacturer's suggested retail price. Target matched HomePlace's price of $99.99 on the same T-Fal set.

A St. Louis owner of a specialty kitchen goods store said that category killers such as Kitchens Etc. and HomePlace will probably have more success competing against the mass discounters in the lower-to mid-range cookware price points and doubts that it will be able to sell the higher-end sets in great quantities.

Cookware manufacturers at the Housewares Show in January also seemed to be aiming for the middle. Many introduced pot and pan sets with professional features and lower prices to capture the middle market in the $199 price point.

High-end Calphalon introduced a more budget-minded line, and T-Fal's Armaral Exclusive 2 and Wearever's Gorme "moved up a notch with their new lines to come to the middle, where there has been a void," said Rick Lamb, vice president of merchandising for the Freemont, Calif.-based Home Express chain.

The Gorme line, signed by Steve Lawrence and Eydie Gorme for Wearever, consists of an affordable eight piece set with professional features such as non-stick Maxalon X5000 interior surface, tempered glass covers and highly polished stainless exteriors.

The Corning Ware Casual Elegance line, also at the show, received Good Housekeeping's Good Buy award. The multi-use fine for cooking, serving and storage for families with hectic lifestyles features rounded corners for more even microwave heating and wider rims for more convenient carrying from the oven to the table. "Even though people are not putting fine china and crystal on their dining tables anymore, they still want something nice," said Good Housekeeping director/editor Sharon Franke.

Another Corning product that drew attention was the Pyrex Portables line, which includes an NFL licensed product--a 9-in. by 13-in. sculptured oblong baking dish with a whit plastic lid for $34.99 -- designed with pre-football game tailgate parties in mind. The line, which was introduced last year, keeps home-cooked meals warm or perishables cool in the summer while in transit to a picnic or a party. Each Pyrex Portable comes with an insulated carrying case in the consumer's favorite team colors with both hot and cold thermal packs.