Biz is strong in computer desks; sold for basic home-office use

Discount Store News, March 4, 1985

Biz Is Strong in Computer Desks; Sold For Basic Home-Office Use

Computer desks are expected to remain among the leading items in KD furniture but their continued growth will not entirely rely on their intended purpose.

Although home computer sales were down last year at many mass merchandisers, especially during Christmas, its furniture accessories enjoyed 25%-30% sales gains, according to buyers who merchandised the items as basic home office furniture.

Indeed, many chain buyers feel the high-margin computer desks--50% plus, every day, and about 30% on promotion-- will continue to boom as the items begin a heavier infiltration of the home office area.

Computer desks were one of many logical choices to help broaden the burgeoning home office area. Mass merchants are clearly taking aim at the nearly 27 million households currently maintaining a home office for business purposes. In fact, many chains are downplaying the computer aspect of the furniture altogether, not even identifying the items by name.

"We don't want the customer associating the furniture with the home computer field,' said Gold Circle's furniture buyer, Derek Dubin.

Dubin said the demographics of the stores where the desks are best sellers show 75% of computer desk sales are to non-computer owners.

Apparently, many mass merchants have picked up on this trend. K mart, Bradlees and Harts are featuring desks in their CE departments, cross-merchandising the furniture with its hardware. But, for the most part, discounters continue to display computer desks in KD furniture departments.

Danner's and Gaylords merchandise the desks in an office tableau within their KD departments, but many other chains display the unadorned desks atop of gondolas with stock below. However, several buyers noted presentation is not as crucial a sales factor as the items' packaging.

"If a customer can't tell what it is and if he wants it by looking at the box, we can't be in this business. Occasionally, we may not have a desk set up; it eats up a lot of floor space, but we still sell them,' said Gold Circle's Dubin.

In addition to merchandising the desks, the trend of getting away from a pure computer recognition can also be seen in recent chain advertising.

Danner's, Gaylords, S. E. Nichols and Harts are among several discounters contemplating advertising the desks without featuring computers.

"We might show computers with the desks but we don't like to confine it to such a small segment. We'd rather position the item as more of a utility type of table and let the customer decide what he wants to do with it,' said Richard Lento, buyer for Gaylords.

Gaylords will continue to concentrate on the lower end of the computer desk spectrum, offering no-frills furniture for as low as $19.99, up to $59.99.

At Gold Circle, however, the chain features computer desks priced up to $149. The higher priced desks offer more shelving, hutch-style monitor stands, beveled front rails, roll-top enclosures and multioutlet electric socket strips.

"The higher priced models offer the consumer more style. They can be used as a hutch or a bookcase. Consumers are looking for a multifunctional piece of furniture, not just something to put a computer on,' said Dubin.

Gold Circle currently carries three sku's of computer desks, from $49 to $149, and will add three more units this spring, two at the high end.

Nichols will try to top that. Buyer Bill Levine said he'll be adding a $200 computer desk later in the year. The chain currently carries three units at $50, $100 and $150 every day, which on promotion drop to $40, $90 and $120, respectively.

After one year of strong computer desk sales at Danners, the chain will add 8 ft. to its 16-ft. area, and add two new units to its current selection of three. Buyer John Walsh said he'll add one unit at the high-end $100 price point and another for $29.99.

Photo: Computer furniture is receiving more of a fashion treatment at discounters nationwide. Bradless, Middletown, N.J., turns a computer work station, priced at $149.99, into an attractive wall unit.