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Drug Store News, Feb 2, 1991 by James Frederick

Show attendees shrug off many recession worries

CHICAGO -- Judging the tenor of the recent NHMA Housewares Show here, recession was a troubling but distant rumble. Despite fears of a real cutback in consumer spending this year, thousands of new and improved products still made their debut at sprawling McCormick Place during the four-day event.

Manufacturers filled 2,000 booths and seemed to be putting the best face on what is sure to be a difficult year. From low-price hair accessories to high-ticket, European-design espresso makers, the huge exhibition center swam with new products, new designs and the latest word in fashion colors.

"I'm amazed at the number of gadgets; it's just overwhelming," said Ernie Ostreicher, chairman of the four-unit Drug Mart chain of deep-discount stores in Dayton, Ohio. "There are a lot of European entries. Really, there's just too much of everything."

"We've seen a lot of good items," added John Kerr, president of Kerr Drug Stores in North Carolina. "I think there's still a lot of exciting products at the show."

Much of the activity can be attributed to long development cycles for new products, many of which have been in the R&D pipeline for years. Nevertheless, big names like Rubbermaid, Conair, GE and Teledyne Water Pik continued to sponsor big, splashy exhibits, and other big suppliers like Vidal Sassoon and Betty Crocker hosted expensive fetes to whip up buying enthusiasm in a bleak economic climate.

Total attendance also remained strong, with some 55,000 participants from around the globe. Buyer attendance, however, was off measurably -- roughly 12,000 total retail participants, according to the National Housewares Manufacturers Association. That was fewer than the 13,000 who were originally expected, and fewer than last year's total.

Both buyers and vendors were quick to sense the drop-off in numbers on the aisles. "I've seen very few retailers sprinkling the aisles," said Al Towle, head of RDS in Phoenix. "I think we're already in a deep recession now in a lot of markets, and it's got to be a tough year."

Added vendor Steven Gutterman of Gutterman & Co., which markets Tarn-X and other cleaning products, "The quality of people we've seen is good, but traffic is down and chains are sending fewer buyers. Everybody is afraid of recession, but they're willing to do business."

Chain drug and supermarket buyers polled on the trade floor echoed the caution, but they were looking hard for new items and deal opportunities. "Most of the business is done after we get back home, but I see a lot of opportunities here," said Jim Hopper, a buyer for Kroger Co. "The products are there; the challenge is presenting it to the customer."

Added Gary Wolf of I Got It At Gary's, "This show is still very worthwhile. You need to stay in touch, and that's why we're here."

Said one vendor at the Sentinel Products booth, "The buyers aren't beating us down on price, but they are looking for good deals...and they're being more cautious about what items they choose and how they merchandise their stores. I think they really did their homework before they came to this show."

Super D Drugs sent several buyers from its different retail divisions, despite the softer economy. "It looks worthwhile," said one. "We're making a lot of contacts."