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Retailers go gourmet on kitchen gadgets. by Perkal

"Retailers are expanding kitchen gadget lines with higher-profit upscale items, according to buyers polled at the fall marketing conference of the General Merchandise Distributors Council here.

New colors and European-style looks are increasingly popular as consumers focus on the kitchen as a prime redecorating area, they said.

Some 10-15% of the kitchen gadgets at Northlake, Ill.-based Dominick's Finer Foods stores ""were upscaled into more stylish items, such as those with black and white handles with 10-20% higher price points,"" said Ray Stone, vice president, general merchandise sales and purchasing.

""We believe customers want department store quality gadgets at discount prices, and we can save them 20-25% off the major department stores,"" he noted.

Stone said the kitchen is the second most redecorated room, after the bathroom, in color and accessories. ""Customers are looking for upscaled gadgets to keep in a jar on the countertop or to hang on a wall.""

This summer, Dominick's completely revamped its gadgets lineup by cross-merchandising 30-40 small items throughout each grocery aisle, said Neal Gardner, buyer-merchandiser, housewares.

""We're tying into more grocery products and coordinating the whole effort with our grocery department for greater gadget exposure,"" he said.

Several Wetterau divisions are introducing a broader array of upscaled gadgets to satisfy shoppers interested in gourmet cooking. ""We broadened tools and gadgets extensively to satisfy wider consumer interest in gourmet cooking,"" said Diane Driesbach, head buyer, Wetterau Laneco, Palmer, Pa.

She said many introductions center on ""the more stylish kinds of tools and gadgets people now use in gourmet cooking. Pasta crimpers, fish gauges that tell cooking time and other products with black handles are very popular with shoppers.

""We revamped gadgets by replacing hanging tools with items with black and white handles to put some excitement in the department and to create a unique section in the category,"" Driesbach added. ""These gourmet items add appeal to the category, which hopefully will pump higher sales through the register.""

She said the whole idea behind upscaling gadgets ""is to become more contemporary. Consumers are now putting these things out on counters in baskets to look nice for company to see. They're hiding the old aluminum stuff in cabinets or in a drawer.""

In Wetterau's USCP-WESCO facility, Los Angeles, the gadget assortment was expanded by 20%, with many upscaled products introduced, according to Lou Bernardi, first vice president. Although basic gadgets, including peelers and turners, represent the core category volume, Bernardi said, ""the trend is definitely to consumers trading up to higher price point gadgets in more fashion-oriented styles.

""Women are taking their gadgets and cooking tools out of the drawer to be seen and to make a fashion statement,"" he noted. ""Fashion items are retailed at 25-30% higher price points and can go higher, as gadgets keep trading up to more sophisticated style choices. I think there will be a gradual shopper shift to the more stylish gadgets through attrition. As she replaces a dented or broken item, it will be with the new, more upscaled versions.""

Bobby Carr, buyer, Wetterau's South Carolina division, North Charleston, S.C., said he's ""keying in real strong on aluminum gadgets highlighted in dollar day promotions. We took a little different approach by focusing more aggressively on a group of imported, good-quality basic gadgets retailed at $1, $2 and $3.

""We did this at two Save-Pack warehouse supermarkets and had a 43% volume increase on the featured items,"" he added. ""We mounted a similar program which revolved around imported better-quality SKUs of pancake turners, peelers, can openers and bottle openers at a good retailer gross at 26 independent supermarkets in Charleston, and they had similar results. The promotion brought in incremental sales.""

United Grocers, Portland, Ore., is evaluating the addition of upscaled gadget assortments and tools to the merchandise mix, and is amenable to higher price points depending on the items, said Doug Kirkpatrick, buyer, general merchandise.

""We supply some rural markets, where we are the only place for consumers to find kitchen gadgets and tools, and our retailers may as well capitalize on that business,"" he said. The buyer will recommend retailers place upscaled gadgets in a separate section away from basic lines ""to let them stand out better,"" he added.

Arlyn Clark, buyer, general merchandise, Copps Corp., Stevens Points, Wis., is thinking of replacing several smaller gadget vendors with ""a single, better organized-looking line at slightly higher price points. This category can justify higher retails if you can make the selections on display more attractive,"" he said.

""The gadgets category is not too price sensitive,"" he added. ""A nicer-looking display with better, more uniform packaging has been in test in a few stores for the past few months. If successful, we'll roll it out to other stores, too.""

Millard Garnaas, senior buyer, Certified Grocers of California, Los Angeles, said while black and white ""are the most popular colors in upscale gadgets, basic items still account for the bulk of gadgets volume. We use upscale gadgets as in-and-out promotions, and offer these at our two seasonal shows. They are popular promotions at stores in upper-income areas.

""Peelers and manual can openers stocked in five or six styles and retailed at $1.69-7.99 remain the top-selling item in units in the whole gadget line. Basic kitchen tools, including servers, slotted spoons, turners and other tools with black handles, generate the most numbers in the basics gadget line,"" he said.

To highlight gadgets more aggressively and profitably, Certified is putting together its first in-house dollar days houseware promotion. ""We're cherry-picking the best 20 kitchen tools and gadgets in basic selections to be highlighted in a new eight-page nonfood roto at that time,"" Garnaas said.

Gary Stoneberg, general merchandise coordinator, Riverside Markets, Du Bois, Pa., said the chain's gadget sales increased after he increased department sizes and shifted to ""a more attractive product line with a more organized appearance."""

This article was published on Sunday 17 December, 2006.

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