VISALIA, Calif. -- Nickel's Payless Stores is serving up lower price points in its kitchen domestics segment.
The retailer has found that customers are receptive to the $2.28 to $3.69 price points, according to Monty Rainwater, general manager and supervisor of nonfood. He said that while some customers may want higher quality selections, many prefer lower-cost items.
"Lower-end kitchen domestics are used more for short-term use than anything else. Customers use an item for six months, then throw it away and buy something new," said Rainwater. Nickel's kitchen domestics segment features 30 stockkeeping units, including hand and dish towels, oven mitts and pot holders. It has been generating $1,920 in sales a week chainwide.
The chain featured a higher-quality line several years ago, but discontinued it due to slow sales. Though lower-end selections have been offered for the past five years, a permanent program hasn't been established until now. The lower-priced items, which carry 27% margins, generate far better sales and shelf turns than the higher-priced selection, Rainwater said.
"What we have now may be lower-end quality, but we do a pretty good job with it," he said.
The assortment is merchandised on two 8-foot-wide by 30-inch-high pegboards, which have been placed above and under a series of promotional kitchen housewares wire baskets in the middle of the gondola.