Greater selection, fashion: rainwear's silver lining

Drug Store News, Feb 17, 1992

Greater selection, fashion: rainwear's silver lining

Rainwear is no longer an "item-only" business, say retailers, who are beginning to assess rainwear as an everyday impulse category.

Many are finding that by increasing the space they devote to rainwear departments and adding SKUs to their core umbrella offerings, they can increase sales.

Indeed, Totes estimates that 97 percent of all drug chains have an everyday umbrella program in place. That's a big change from the 43 percent of drug chains which carried such programs in 1982, according to Totes.

"We've instituted a permanent 4-foot in-line department for umbrellas and other rainwear merchandise," said Chris Michel, buyer at New Orleans-based K&B. "The department is 100 percent planogrammed, so that merchandise is ordered more routinely and everyday maintenance is made easy." With average annual rainfall of 100 inches in New Orleans, keeping the department stocked is important.

Sales on rainy days

It's not surprising that retailers cite rain as the reason for most rainwear sales. What is surprising is the number of days precipitation occurs. Jack Heines, chairman of J. Jay Products Co., Inc., estimates that the average annual rainfall for most of the country is between 100 and 140 days a year--more days than most people would suspect.

"Generally, the cheaper an umbrella is, the more we'll sell and we stock inexpensive imports at $1.99," said Carl Wheeler, buyer at Memphis-based Super D Drugs, Inc. "But if it's raining, customers will buy whatever is available."

To capitalize on those surefire rainy-day purchases, manufacturers, such as Totes and J. Jay have developed portable racks which can be moved to the front of the store in inclement weather.

The portable rack has proven to be a good secondary location at Kerr Drug Stores in North Carolina. It's also a smart compromise for retailers who would like to increase their rainwear offerings, but can't afford to devote additional floor space to the category.

"We have a rack that can be moved to the front of the store when it rains," said Cynthia Stahley-Zuniga, buyer at Genovese. "The rack works since I can't devote in-store space to rainwear, and the volume per-square-foot is better for the rack."

Stahley-Zuniga said that impulse sales sparked by front-of-store placement has helped her increase business at the Melville, N.Y.-based chain. "I still do 80 percent of my business in umbrellas, but I get additional sales of rain bonnets and hoods," she said.

Both Bill Carpenter, buyer at Kerr, and Ron Riviere, buyer at Snyder's Drug Stores, have moved away from an inline 4-foot rainwear department to the portable rack.

Wheeler has included rain ponchos and bonnets from J. Jay to the mix and has had swift sales of the items; Riviere said sales of adult-sized transparent raincoats, which retail from $3.99 to $4.99, have been good.

"The key to the rack is that stores can order SKUs once a week," said Dick Potokar, buyer at American Drug Stores. "When the department doesn't have a permanent home, keeping it stocked can be a downfall. The ability to quickly stock the rack solves that problem."

The Oak Brook, Ill.-based chain uses 2-foot fixtures that house a complete rainwear center. Potokar said the rack enhanced sales immensely.

Although Super D's Wheeler is pleased with the portable rack he uses to display rainwear merchandise, he's concerned about getting all the stores to roll out the rack when it rains.

"That business depends on impulse and I'm trying to find a home for it--instead of the back room--on sunny days. I'm still undecided about planogramming a section for it," he said.

Customers trade up

While some retailers continue to stick with the traditional mix and leave high-end goods to the department stores, many retailers have noticed a market for higher-end merchandise, particularly around the holidays and Back to School.

"We do some business in higher-end umbrellas around the holiday season that come with a sleeve identifying them as gift items," said Kerr's Carpenter. Carpenter said the sleeves can easily be removed once the holiday is over so there's no need for markdowns. Genovese's Stahley-Zuniga also does a swift holiday season business in high-end umbrellas.

"I see rainwear gradually trading up," said Edward Dweck, Raines' president. "There is room for quality and for fashion."

Totes Chromatics division is trying to fill that niche with fashion colors and prints priced from $8 to $10. "Only 18 percent of Chromatics umbrellas are purchased during a rainstorm," said John Catt, marketing manager. "The way to explode this category is through color and fashion."

Some retailers agree. "Fashion makes a difference and Totes has given us some play in that area," said Super D's Wheeler.

Said Kathy Covault, buyer at Drug Emporium: "We've run a few ads on Tote's Chromatics during the holiday season and have done very well with that merchandise. You have to make a commitment to the category and Chromatics will give us a leg up because of the excitement the fashion creates. Our business is steady; we definitely have sunny day sales."