COST PLUS PROTOTYPES FEATURING TEA, CANDY

MARYELLEN LO BOSCO

OAKLAND, Calif. -- Tea and candy are being featured in four Cost Plus World Market prototype stores.

Two 130-square-foot kiosks, which carry products from the Republic of Tea and Ghirardelli Chocolate, anchor a gourmet food section called The Marketplace, according to Melissa Oldenbourg, spokeswoman for Cost Plus here.

The Marketplace departments, which are situated in the back of the prototype stores, are signed with a green awning and stock a wide array of packaged specialty foods.

The kiosks are being tested in the newly remodeled store here and in a new store in Rochester Hills, Mich., according to Gerry Blake, merchandising manager for food and beverage at Cost Plus. They are also planned for Portland, Ore., and Ann Arbor, Mich., units slated to open next month and October, respectively.

According to Blake, if the vendor shops are successful, they will be rolled out to all 26 of the prototype stores. While Republic of Tea and Ghirardelli were chosen for their cachet in the Bay area, Cost Plus may feature the products of additional vendors, depending on location.

About 38% of the chain's sales are in food and wine, said Blake. The Marketplace occupies between 25% and 30% of floor space. The Ghirardelli kiosk has more than 50 stockkeeping units of chocolate, coffee and cocoa. More than 30 SKUs of tea in tins, bulk and packages can be found on the Republic of Tea kiosk.

Products that can be found in the Marketplace section include condiments -- for example, 18 varieties of olive oil -- beer, wine, caviar and pasta.

Like other Cost Plus stores, the four test stores offer a wide variety of home furnishings and entertainment items from around the world.

Cost Plus currently has 63 stores nationwide.