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September 1987

Make aClean Break and art galleries are now available from Lightolier for home use.

A 16 oz. wide-bit mason's hammer with a l-3/4" -wide cutting bit is new from Plumb.

The flat radius end panels are ideal for kitchen or vanity cabinet side/corners. armoirs. home entertainment centers and counter toPs with splash backing. They are sized 25-l/2" wide x 84-l/2" longx 3/4" thick, available in 3", 4" and 6" end radii.

The 75-watt Super Beamer features a unique adjustable beam spread. By turning a knob behind the fixture, the light can be expanded to illuminate large objects or tightened to focus on smaller objects.

Designed to make clean breaks on the new style "queen" or "kingsized" bricks and cinder blocks, the hammer is made of high-strength steel, double heat treated to build in the toughness necessary to withstand impact.

A 10-1/2" high-grade hickorY handle is bonded to the hammer head, which is finished in a durable black enamel paint.

Paneled WithA Curve

A set of radius end panels and a new quarter round section have been added to Roberts Plywood Co.'s line of curved plywood sections.

The extra thick, 4" x 96" x 7-l/2" wide quarter round section allows use as a corner support in constructing all types of kitchen and bath cabinetry, particularly parson's tables.

Sweet Beams

Two new low voltage track lighting fixtures which simulate the highly dramatic lighting of museums

The compact 5O-watt Mini Beamer offers a fixed, narrow beam Pattern, with the same reflector design and built-in lens cap to avoid glare problems.

Both models come in matte black or matte white finishes.

Kitchen Cabinet Sales Boom

Demand for kitchen cabinets for residential repair and remodeling is expected to increase l2o/o in 1987, according to McGraw-Hill Information Systems Co. Over 20 million cabinets will be used by homeowners this year for repair and remodeling work.

Their studies show a good period for repair and remodeling over the next two years at least, because of a strong housing resale market. More than half of U.S. homeowners will remodel or make repairs during the six-year period following a move to another house, rather than staying put and remodeling their existing homes.

F-orty-seven percent of surveyed consumers who installed kitchen cabinets indicated that they replaced existing cabinets; 42% used cabinets as part of a largeremodeling job; and l1 o/o added a new kitchen.

A strong do-it-yourself market was apparent. F-ifty-five percent of the homeowners surveyed installed their own cabinets. In over half the jobs, cabinets were purchased from kitchen cabinet specialists. In 280h of' the jobs they were bought from retail stores.

The survey showed a slight edge to sales of cabinets selected from stock cabinets in a store display or catalog (5401t), compared with cabinets custom made to the homeowner's specifications (46%)

The popularity of solid wood doors for kitchen and vanity cabinets is indicated by forecasts that solid wood doors will have a 700/o market share in 1987. Doors made of laminates such as wood veneers and plastic account for the other 30%.

Of the do-it-yourself consumers surveyed, 500/o indicated they spent less than $1,000 for the cabinets they purchased, and 460/o paid between $1,000 and $4,000. The average cost of cabinets, without installation charge, was $1,290.

Do-it-yourselfers buy fewer cabinets and pay less for their cabinets than consumers who hire professional remodelers. As a result, fewer cabinets in total are sold to do-ityourselfers than are sold to professional cabinet installers.

The Merchant Magazine

Many of the consumers surveyed purchased countertops, appliances, flooring and other products as apart of their kitchen remodeling project. The average cost of cabinets, installation and other product purchases was $6,440. Thirty-four percent paid less than $3,000, 430/o paid $3,000 to $8,000, and 230/o over $8,000.

A modest decline is indicated in cabinet demand for new construction. Forecasts are for a demand of 23.9 million kitchen and vanity cabinets in 1987. Lower housing starts in 1987are blamed. Mobile homes are expected to add 1.8 million, and repair/remodeling 20.5 million, for a total annual cabinet demand of 46.2 million units.

Slow Sales Ahead For Retail

During the second half of 1987, durable goods retailers are expected to post their first inflation-adjusted sales decline since 1982. By the fourth quarter of this year, James Newton, president of Economic Perspectives, Inc., projects that total

September 1987 retail sales will grow by just under 4% over the level achieved during 1986. Not only does this current dollar growth rate compare poorly with the 6.10/o 4th quarter rise of last year, but it is even worse after adjusting for inflation. During thefinal three months of 1986, retail Price increases amounted to an almost nonexistent 0.4010. During the fourth quarter of this year, the retail inflation rate forecast will stand at about 4ol0. When combined with the current dollar growth rate of just under 4010, it means that retailers will see a very slight drop in their constant dollar sales performance during the 1987 Christmas season.

Also hurting the possibility of a significantly more Profitable Christmas this year is the emergence of what Newton terms SuPPIY-fush Retailing. According to Newton, this represents the antithesis of the "demand-pull inflation" exPerienced during much of the 1970s bY retailers, that is, "too much money chasing too few goods." In contrast, the remainder of this decade will be characterized by Supply-Push Retaillng which can be summarized as

"too much selling space chasing too few customers." Thus, the over-supply of retail selling space will have the effect of pushing down the prices (and resulting profitability) which retailers canexpect. This trend " ' is a long run problem for the retail industry ." saysNewton, " but is one which can be partially offset by the more productive use of facilities, people, and inventories."

In an initial look at the Year 1988 for retailers, he believes that 1988 will start off strongly, but that the blossom will quickly fade. Shortly thereafter, "... the underlYing weakness of the retail sector will become apparent." One reason for this is that during 1988, consumers and retailers will begin to feel the effects of last year's tax law changes.

Home CenterShow Lineup

"Identifying Your ComPetitive Advantage" has been selected as the theme of next year's National Home Center Show, March l3-16, at Chicago's McCormick Place East & North.

Bill Fishman, director of the

Order nou, from Higgins Lumber inventory. We deliver in days, not weehs.