Kitchen Korner will spread to every K mart

Discount Store News, April 16, 1984

TROY, Mich.--As K mart doubles it tally of Kitchen Korners--to nearly 1,100 or in about half of its stores in 1984--the two-year-old concept will continue to evolve.

With Kitchen Korners improving same-store sales by 35%-40%, K mart is driving hard to implant the new department in all its stores--even in its smallest 40,000-sq.-ft. units. In the smallest stores, the Kitchen Korner setups will resemble their larger brethren, only with thinner assortments, K mart buyers said.

Coming off an aggressive 1983 when Kitchen Korners mushroomed to 540 stores, K mart expects productivity improvements to continue based on: 20% greater department footage, expanded assortments with more brand names, some new fixturing and display approaches, improved adjacencies, an import program that emphasizes distinctive novelties and accessories, and a continued fashion presentation which can spark impulse buying.

Promoting Kitchen Korner as a separate entity met success this past Christmas season, and will be repeated for 1984's Mothers' Day and Christmas holidays, said senior buyer Donald Edel. A 16-page, four-color co-op tabloid was sent to stores with Kitchen Korners for front-end distribution as a gift catalog. The predominantly brand-name affair touted everyday-priced nonelectrics and microwave ovens.

However, K mart doesn't plan to give more fanfare to Kitchen Korner Openings in an existing store. "There's no promotion unless it's part of a total store remodeling effort," said Edel. "Customers immediately recognize the atrium [red canopy] and distinctive physical setup," said senior buyer Donald Bratt.

By rapidly accelerating its roster of Kitchen Korners, K mart has been able to gain distribution efficiencies to the point where 70% of Kitchen Korner goods now move through chain warehouses, compared with 30% initially, buyers said.

These changes, along with sales of some pricier goods, have kicked up the department's gross margin 1 1/2% in the 14 months since K mart began streamrolling the concept, a K mart spokesman said.

Turns have improved too, he added, to roughly six in Kitchen Korner compared with five chainwide.

Kitchen Korner's price points have been broadened gradually with no abandonment of lower-end business, buyers explained. In 1984, for example, six Newcor stoneware patterns priced up to $45 were added to the existing Kitchen Korner mix of six 20-piece sets which retail at $29.97 everyday.

Bratt said the chain is "maintaining all our former lines at their price points, except for upgrading wherever necessary." For example, adding Regent Sheffield and other branded cutlery priced up to about $20 raised the segment's former top retail of $3.97, he said.

In addition, Anchor Hocking Moments glassware, gifts and stemware will replace an imported line of wheat pattern kitchen ceramics on Kitchen Korner shelves. Moments will retail every day at $5.57 to $24.57.

Cookware demonstrates clearly how Kitchen Korner is positioned to lure both ends of the business. Boxed sets by Club Aluminum, Revereware and Farberware blended with promotional SilverStone sets generate a 1983 sales increase of more than 50% in this category, said Bratt.

Depending upon the Category, name brands represent 40%-45% of Kitchen Korner stock in nonelectric housewares, buyers said.

Fashion presentation ties in with the self-service department's expanded and upgraded assortments. Coordinated "families of merchandise," such as Kitchen Korner's newly developed exclusive line of light pine patryware like knife caddies, recipe stands and bread boxes with ceramic tile, will dictate merchandise presentations by midyear, said bratt.

After experimenting with bold colors in cookware and accessories, chain buyers said they'll concentrate on neutral almond as a color hub.

Department layout and fixturing will generally be maintained, buyers said, because the staggered view of merchandise they provide builds traffic effectively. Compared with 54-in. gondola heights in most K marts, Kitchen Korner fixtures ascend from 54 to 66 to 72 to 96 in. Stronger Impact

Recent display changes at Kitchen Korner include the addition of racks for boxed cutlery, branded flatware and bakeware, spinner racks for frypans and sautepans, and expanded space for microwave cockware, copper items, decorative tea kettles and woodenware.

An import novelty program helps to distinguish Kitchen Korner even further. Beer steins from Germany, decorated tinware from England, teak accessories from Thailand, Oriental marble and glass and Italian cutlery and ceramics have all been on its shelves recently.

For now, the department's leading growth categories are microwave cookware, cutlery sets, kitchen accessories (up more than 100% in 1983) and boxed cookware, said K mart buyers.

More aggressiveness is evident in merchandising kitchen electrics here as well. From two to 30 of the costlier products are advertised in each chainwide flyer, as Kitchen Korner quietly maintains its opening price point business, said senior electric housewares buyer Dennis Dorn.