Neons, green goods make grade at BTS show - National Back-To-School Merchandise Show - Hard Lines

Discount Store News, March 18, 1991

Neons, Green Goods Make Grade at BTS Show

NEW YORK -- Basic school supplies souped up with fashion colors and bolder graphics caught the attention of buyers at last month's Back-To-School Merchandise Show here.

A sprinkling of patriotic themes and "green" products also were available at the 10th anniversary of the show held at the Jacob Javits Convention Center Feb. 9 to 11. The annual event attracted 11,003 buyers to 1,120 booths, an attendance decline of 1.5% from 1990. Booth space, however, was up 10% from last year.

Color, particularly toned down neon and jeweled hues, set the theme for basic school supplies for the upcoming 1991 Back-To-School season and for many accessory items.

The colors were visible in most product categories from notebooks to book bags plus some product areas not usually dressed in fashion colors.

For the first time, vivid colors and designs were applied to pencil barrels, available from many suppliers including Bic, Empire Berol and Pentech.

Neon colors even cropped up from Borden, maker of Elmer's School Glue, in a new product called GluColors, a glue and arts and crafts medium, a show winner this year.

Patriotic themes in red, white and blue and camoflouge motifs salted the offerings of some makers. On the whole, buyers and vendors seemed uncomfortable about capitalizing on the Persian Gulf War, fearing they would look like profiteers.

Some manufacturers, however, seized what they interpreted as an opportunity to fill a void. Companies such as Stuart Hall and Joyfully Yours each developed products aimed at meeting a specific need related to the war.

Stuart Hall created a line of 15 pound writing paper and envelopes called Save Postage. With a U.S. flag on the envelope flap and in the bottom left corner of the paper, company chairman Charles Hanson said Save Postage was developed to meet the increased letter writing of families and friends to soldiers in the Persian Gulf. The new lighter weight paper provides consumers with a third more product than 20 pound paper at the same price, an important characteristic in airmail products.

Joyfully Yours, part of Outreach Publications, which specializes in inspirational products, created a line of greeting cards with patriotic messages in support of the troops and world peace. A portion of the proceeds go to assist families of soldiers and others affected by the war in the Persian Gulf.

Green products were available from several makers, particularly paper producers, including Mead, Stuart Hall, DataCom, Norcom, Atapco, which also showed some recycled plastic products, Acco, and Tops Business Forms.

Buyers appeared interested but cautious about adding recycled products. They specifically expressed concerns over price premiums--as much as 15%--and product quality.

The issue, though, is a hot topic of the 1990s and was included in the hour-long discussion at the BTS seminar, "A Look at the '90s--Trends and Projections," sponsored by Discount Store News and Drug Store News.

Panelist Linda Harrison, stationery buyer for 20-unit Stuarts, said recycled products have had little impact on Stuarts' business so far because customers are not yet aware of them. She expects "green" to become an issue for Stuarts customers but noted it will take time to develop.

James Nakamura, executive vice president of the nine-unit office supply superstore WORKplace, and a panelist, said his chain maintains a full line of recycled paper products because some of its commercial accounts require it. With all of WORKplace's stores located in Florida, Nakamura sees recycled stationery products becoming a requirement in the state.

The seminar, moderated by John Failla, publisher of DSN and Jill Manee, associate publisher of DrSN, also included lively discussion about the effects of the recession on retailers' businesses and how economic restraints are pressuring them to stick pretty close to basics. Fringe items are being kept to a minimum in 1991, many said.

In addition to Harrison and Nakamura, the panel included three drug store executives. All of the panelists discussed consumer willingness to trade-up to higher priced, higher margin goods but only if they perceive a value.

Back-to-school stationery and home/office supplies is about a $3 billion business at retail. Now a year-round category, BTS/stationery is a rapidly growing category, producing 4.7 turns a year and gross margins of between 40% and 45%.

A 1991 DrSN/DSN BTS Retail Survey released during the seminar revealed:

* 93% of buyers forecast a sales increase of 5%-10% this year; * 57% project no increase in department size; * 27% project more space will be given each to home/office supplies and to recycled products; * The fastest growing sub-categories, in order, are home/office, recycled/reduced package products, children's arts/activities, year-round stationery; organizational products; and pegged writing instruments.

Other trends discussed by panelists and visible at this year's show included the expansion of the home/office sector, multi-packs and products aimed at young children.