Living Center to key K mart's RTA ascendency - ready-to-assemble furniture - HomeMarket Trends

Discount Store News, May 8, 1989

Living Center to Key Kmart's RTA Ascendancy

K mart might be a latecomer to the ready-to-assemble furniture business, but the Troy, Mich.-based chain expects to become "better than everybody else," in a short time, said Marilyn Gill, divisional merchandise manager, home fashions.

The RTA department is shaping up as just one of several categories comprising the K mart "living center." The center comprises furniture, lighting, floor coverings and, in some instances, pictures and frames.

Adjustments to the layout of the living center are under consideration, Gill told Home-Market Trends, but nothing will be decided until much latter in the year. To date, the living center has been installed in smaller stores in conjunction with the relocation of soft lines to the center of the store more than a year ago.

Being at the cutting edge of color and wood tone trends is one way K mart plans to surpass its competitors, said Gill. Sufficient space, fixturing and an increased advertising schedule are the only other components the chain will need, she asserted.

"You can do just about anything as long as you have space and fixturing. I don't think I'll have any problems getting the new fixtures. Headquarters has agreed to a 40-foot minimum of RTA in smaller stores; I'm trying to get an 80-foot minimum in larger stores." Gill is also trying to set space minimums for floor coverings and lighting.

At one extreme, some K mart stores do not currently offer floor coverings or lighting; others have over 60 feet of floor coverings and as much as 160 feet of lighting. The goal is to carry at least 80 feet of lighting and a minimum of 40 feet of floor coverings, Gill said. Minimums were not yet established for pictures, mirros and frames.

While space allocation and fixturing are already in the works, advertising remains a sore spot. "RTA will be advertised at least once every four weeks, I'd like it to be much more. I'd like it to be four times more," Gill said.

Fixturing details are still being worked out. Most K mart stores presently have a low platform presentation. The new fixtures would probably be similar, but higher, allowing more room for stock beneath the platform.

Consumer electronics and microwave oven furniture are expected to be incorporated into the RTA department. "I'm still agonizing over that decision. We'll probably bring it all together," she said.

Last month's Southern Furniture Market was the first such market Gill had attended. While few definitive plans were made as a result of the market, Gill said she will trust the consensus among vendors and look to furniture with a medium to lighter medium oak finish. Black and white will be the only colors selected from the palette of lifestyle furniture available.

The light, "washed look" wood finishes that are available among case goods vendors would also be considered by K mart for selected stores if and when these finishes become available in RTA.

"We might want to test one of the new washed looks or lighter colors. I don't know whether the products we can sell are in those colors yet," she said. Markets that would be considered for the lighter tones would be in urban areas on the east and west coasts, and all of Florida.

Creating a regionalized merchandise mix will become possible once an adequate sales history has been established. Tear tickets will be on almost every piece of RTA stock, enabling cashiers to scan the ticket and record the data. In the past, most of the RTA stock did not have the tear tickets. Cashiers usually did not scan the merchandise because of the effort it would take to run such a large carton over the slot scanners.

A Martha Stewart furniture program (see stories on Martha Stewart, pages 4 to 25) has not been ruled out, Gill said, but if it were to be created, it would be an extensive furniture program.

"It's not likely in the near future, but not ruled out for the distant future. I don't want Martha fragmented around the store. If I do something with Martha in furniture, I want it to be a major statement."

PHOTO : Medium to lighter wood finishes are currently being considered for addition to K mart's RTA furniture offerings.

PHOTO : K mart will begin planogramming its RTA departments. Previously, managers chose pieces from a list compiled by the HQ buyer.

PHOTO : K mart's RTA department is shaping up as a `living center,' encompassing furniture, lighting and other products.