By Barbara Thau
Retailers at the International Home & Housewares Show are on the hunt for bargains that would appeal to shoppers in saving mode during one of the worst economic downturns in recent memory.
But although consumer confidence is on shaky ground, buyers identified an emerging stay-at-home trend that’s benefiting categories ranging from storage and cookware to vacuums, retailers said.
“There are clearly economic factors driving our customers’ purchasing decisions,” Doug Wurl, vice president and general merchandise manager of home for Sears and Kmart, told HFN.
“Finding ways to enhance that value proposition, along with bringing a fresh assortment of on-trend designs to our customers each season, is key in the dialogue we continue with our vendor partners. Successful in-store programs, like layaway, will continue to be part of the conversation as well as strengthening our partnerships with vendors and helping customers during these challenging economic times.”
Still, “We recognize that price isn’t the only consideration in making housewares purchases,” Wurl said. “We attend the show to understand newness and innovation across all of our categories.”
Sears and Kmart will be scoping the aisles for innovation in color and technology, which continue to drive newness in housewares, Wurl said. “There is also keen interest in understanding how retailers and manufacturers can work more closely together to communicate directly with the consumer. Forging this kind of relationship helps us understand her needs and opinions in real time. By working together to listen to her, we can also offer better assortments and increase value.”
The Container Store will shop the show for new sustainable items as “green” remains a hot trend. It will also brainstorm with vendors on negotiating better deals, said Mona Williams, vice president of buying for The Container Store.
“We’ve determined that to navigate these crazy economic waters, [we need] to focus on strategic price promotion,” Williams said. “And to do that in a way that doesn’t change who we are as a brand,” she said.
“We’re looking for items that are promotionally priced and a great value’’
As raw material and transportation costs have dropped for vendors, “We want to address all of that [at the show] so that we can reflect the lower costs and translate that into lower retail for our customers,” Williams said. “You know there are those magic retail prices that make a psychological” difference to shoppers, spark purchases and “can mean huge volume for the manufacturer and The Container Store,” she said.
What’s more, “There is a continuing evolution of natural materials—it’s not just bamboo,” Williams said. “We’re looking at different fibers that are sustainable.”
Multifunctional products are also on the storage emporium’s show wish list. The retailer will look to build on its exclusive Tribeca storage line, which is made from seat belt material.
Although The Container Store has seen sales decreases from last year, the retailer feels fortunate that those dips are not steeper. “We’re maintaining our margins,” Williams said. Basic storage products “continue to be very strong,” she said, noting that sales of kitchen and food storage have spiked as shoppers are cooking more at home.Closet storage is another bright spot.
The Housewares Show marks a prime opportunity to “take the temperature” on trends and negotiate with vendors, said Janis Johnson, president of Gourmet Catalog, the buying group that represents 220 kitchenware stores across the country.
“We had our start-of-the-year-meeting in Atlanta in January. The stores were upbeat, even though some were reporting that sales were down,” Johnson said. And they had “less glamorous comments about February.”
Gourmet Catalog plans to address price concerns with suppliers at the show. Although raw material prices have dropped, “The cost of business has inched up because there is so much fear out there,” Johnson said. “Many times fear finds itself in many ways adding up to dollars.”
At the show, Gourmet Catalog buyers are on a mission to discover categories atypical of what would be found in a kitchenware store, Johnson said.
The buying group works the show with somewhat of a road map. They go with workbooks filled with over 1,000 items based on vendor recommendations and top items.
As HSN has already met with its existing suppliers prior to the Housewares Show, “The whole point of the show is to find new vendor partners,” Adam Marland, vice president of housewares for the home shopping network, told HFN.
“We are always looking for solution-based products, demonstrable products and items with a good price-value relationship,” Marland said.
Personality-driven kitchenware items have struck a chord with HSN shoppers. These include cookware from celebrity chefs Wolfgang Puck, Emeril Lagasse, and most recently, Tyler Florence, as well as Debbie Meyer food storage, which is designed to extend the life of produce, Marland said.
Items that save money, are eco-conscious, health-oriented and demonstrable on television have also performed well. “Products that have been particularly good for us are water filtration, air purification, cleaning and floor care,” from suppliers such as Dyson, Bissell, Hoover and iRobot, he said.
The trends in the housewares industry are aligning with HSN’s core strengths. “In uncertain economic times, there is a re-engagement with the home, a renewed interest in cooking meals at home and maintaining one’s home.”