HUDSON Wis. -- Erickson's Diversified Corp. here has put a new spin on upscale gourmet gadgets with a freestanding fixture cross merchandised at produce and the bakery-deli area.
The 18-store chain garners about $600 per week in incremental sales at a 40% profit margin at one of its three stores that began testing the display fixture last month.
Shelf turns have been hot and heavy since the 4-feet-deep-by-6-feet-wide and 4-feet-high rack has been cross merchandised at these high-traffic areas. "This is our first attempt at upgrading kitchen implements with a definite upscale appearance, and sales have been very encouraging," said Doug Driscoll, vice president of operations.
The merchandise mix, with price points starting at 99 cents and going up to $35 for a stainless-steel teapot, carries brands of Pedrini, Mundial, Danesco International, Free-Free and Fernanda Manufacturing.
These are the same lines found at major department stores like Bloomingdale's, Macy's and other top name retailers, said Gary R. Gustafson, president of Gustafson Associates, Minneapolis, the gadget rack supplier.
Cross promoting the assorted wooden, stainless-steel and acrylic gourmet kitchen gadgets and accessories is spurring impulse volume and building incremental housewares sales for Erickson's, Driscoll said.
The 140-item upscale gourmet cooking rack has a product mix ranging from tight-sealed food-storage canisters, cutlery, cutting boards, bakeware and salt-and-pepper shakers to diet scales, tea kettles and other accessories.
"We're now able to keep this business in our stores instead of it going out the door to Wal-Mart, Kmart and Target," he added.
Some of the kitchen devices romanced on the slatwall display rack tie in with the home bread-baking trend. Featured are bread-cutting guides and bagel-slicers.
Erickson's opted for cross merchandising the products at produce and bakery-deli "for a greater impact where customers purchase fresh-food items rather than in a traditional aisle," said the retailer.
Driscoll said the program will probably roll out to about 11 additional stores with space for the display sometime during the next 90 days. A modified set in a smaller configuration would lend itself to four smaller stores, he added.
