Story at a Glance

Import tools have traditionally competed at the low end of the market, however the lower quality tools are now losing their appeal, he explains. "As recently as a year ago, we were hearing comments such as "your product is too upscale and too high priced for the import market," he says. "Now the marketplace has done a complete turn around."

"Quality imports are finding their way into the domestic market in greater quantities as retailers look for ways to satisfy consumers," says Cohen. "It is anticipated that the low end market will be a diminishing business for home centers in coming years."

-MAYBE-

Nevertheless, many dealers refuse to carry imports or simply stock a very small percentage ofthem because ofquality differences, the security of domestic brands which have been around for years, orjust because they "never looked into the foreign stuff."

"We stock mostly American, though we do carry a few imported screwdrivers

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LMOST anyone over 40 remembers when the hardware store was the place to buy small appliances, cookware, mixing bowls, gadgets and often dinnerware and serving pieces as well. But in the '50s things began to change. The drug stores, the grocery stores and the discounters became places to shop for housewares. Many hardwares and the new breed of home centers started to deemphasize or ignore the product lines.

Now the National Retail Hardware Association is working to stop the eroding of the housewares business in the do-ityourself industry. A program has been developed to revitalize housewares. '' Housewares is a home improvement opportunity" has become the slogan for those rallying home centers to the cause.

Support for this statement includes pointing out that over the past l0 years both the housewares industry and the d-iy/hardware industry have grown at an annual compounded rate of ll% But, sales in the houseware category have declined to as low as3% oftotal sales in home centers. The total d-i-y industry has grown over 165% over the past 10 years while its housewares business has only grown 8l% in the same period.

Rick Lambert of the NRHA staff says, "Maybe we all should take another look at housewares before we decide to abandon or de-emphasize the category."

Another look shows several factors in favor of a home centers/housewares relationship. A recent survey shows that women shoppers are increasing in home centers and that in some stores they account for 5O% ofthe shoppers. Housewares is the No. 2 line which they shop, second only to paint and decorating merchandise.

Men also are becoming housewares shoppers. Almost 20% of all men live alone and even among those who live with spouses and fumilies, there is a trend to do more cooking and housework.

"There's a new breed husband shopping today," says Wolf Schmift, president and general manager of Rubbermaid. "With evidence that more males are involved in conventional household chores previously relegated to the female, there is an increasing interest on the part ofthe task sharing husband to obtain goods and to develop better defined opinions about the quality of goods for the home."

The start ofthe second baby boom generation is another positive factor ftvoring housewares growth, according to Schmitt. Parents with children are considered more home centered and are among the best customers for housewares.

Stores committed to housewares or interested in pursuing them as a profit center, should evaluate their capability of providing the optimum housewares product mix for their current customer base and for those they would like to attract, Schmitt recommends. Proper space utilization means higher turns, better margins and good return on investment.

Suppliers are valuable for helping with assortment planning, he points out. Although the product mix depends upon the target group identified by the store, there are products which have been identified as selling well in home centers. Household organizers, trash cans and waste baskets, small electrical appliances, microwave cookware, cookware, bakeware, gadgets and bathroom accessories are successful in most stores. Many find that giftware and accessories if merchandised properly are good selling items.

Promotion is important. Schmitt suggests that "you carry an everyday price on two thirds of your offerings while promoting one-third to build traffic among your targeted customers." Products to be promoted should be selected to draw the types of customers you want.

Quality is a consideration, he adds. Most customers want quality and are willing to pay a little more for it. Quality is often more profitable to the merchant than inexpensive inferior merchandise. Maximizing shelf productivity is essential. Schmitt suggests that the merchandising objective should be to provide the optimum product mix with strong eye appeal to best display and move volume. Merchandising for maximum impulse sales, using promotion end caps, is strategic. Merchandising by category is also important with sections devoted to items which have appeal for targeted customers. Advertising can create consumer demand and pull new customers into a store. Schmitt says. Pick out products which will draw the people you want to reach and take a deep cut on those items. Special flyers or ads can be themed to a particular market area. For example, a "what every bachelor needs in his kitchen" or "timesavers for the working woman" sales.

Ifyou survey your market, identify your customers and develop a program to meet their needs, housewares can bring new sales and new money to your store, Schmitt concludes.