HOUSE IN ORDER

JOEL ELSON

Housewares are growing in supermarkets.

Direct evidence of this trend is the emergence of new product segments, such as home-safety and health-related devices; the expansion of aromatherapy candle sections, stand-alone destination pet departments; the merchandising of upscale cookware and kitchen gadgets; and the pairing of food storage containers with home-meal replacement.

While housing starts are up, so are sales of traditional and nontraditional housewares categories at supermarkets.

ACNielsen, Stamford, Conn., reports that candle sales in the food channel jumped 42.6% to $257 million for the year ended June 7, 1997, from $183 million a year prior. Candle holders and accessories advanced 3% to $9.7 million and sales of incense rose 7.5% to $8.6 million. Sales of food storage containers rose 11.3% to $108 million, while skillets and wok appliances advanced 10.2% to $1.2 million. Meanwhile, kitchen utensils and gadgets increased 2.3% to $285 million. This is a modest reversal from the year earlier when sales fell 0.3%.

Supermarket executives attending the International Housewares Show this week, Jan. 11 to 14, at McCormick Place in Chicago, will closely monitor lifestyle trends that are driving their shoppers' purchases.

The trend that has most impacted supermarkets is that of home-meal replacement. This has been fueled by the increase in the number of two-income families and the pressures of a time-compressed society.

The demand for home-meal replacement has resulted in changes within the food storage category to containers that are more convenient for storing, transporting, reheating and freezing, as well as cooking.

"People increasingly are bringing more prepared food home from the supermarkets, keeping it for later use, changing its form, or taking it somewhere," said Gerald Kubiki, national sales manager at EZ Foil-Tenneco Packaging, Northbrook, Ill.

The foil manufacturer has developed disposable aluminum foil food storage products with plastic lids for preparing, storing and transporting foods. Priced at $1.99 to $3.99, the items dovetail nicely with current food shopping patterns, said Kubiki.

The aroma-candle craze is being driven by shoppers' desire to return to the nest. Consumers are spending more time at home and they want to create a relaxing environment especially in dining, said Sue Diemer, product development manager, Candle-Lite, Cincinnati.

"Once people get home from work they don't want to go anywhere. So candles priced up to $12 increasingly have become an affordable luxury for many consumers," she explained.

In addition to the regular candle set, Diemer said chains can cash in on this lifestyle trend by merchandising candles and fragrance products near aromatherapy products and at bath and body centers.

Many retailers supplied by Associated Wholesalers, York, Pa., have expanded their candle offerings from a 4-foot set to 8- to 12-foot departments with selections priced up to $12.99. "People spend more time at home and want the more decorative, upscale candles," explained Charles Yahn, vice president of general merchandise for Associated's nonfood division warehouse.

Many suppliers and retailers also recognize the movement among consumers to buy upgraded, quality products. Associated has responded by cross merchandising better-quality gadgets above produce cases, said Yahn.

"These upscale items, priced at $6.95, are in addition to less costly versions for $1.99 in the regular housewares aisle. The economy is healthy and so people are willing to spend a little more on better-quality products," asserted the wholesaler.

According to Yahn, "Generation Xers have become the housewares buyers for these products. They want freshness; organic in produce, fish and meat; and upscale merchandise at stores where they shop."

To cash in on the widening interest in Mexican foods, Keilen, Billerica, Mass., this year will launch a new line of licensed Taco Bell Kitchen Originals, a line of Mexican cookware and kitchenware.

"This presents something new to supermarket consumers," said Herb Garfinkel, the vendor's executive vice president and chief operating officer.

Offering the Mexican cooking utensils, which will be priced between $3.99 to $19.99, enables supermarkets to develop cross-merchandising opportunities with Taco Bell food products, as well," said the manufacturer. The ethnic cookware can be cross promoted on floor displays and portable racks, in-line, and on endcaps, Garfinkel said.

Cookware has also gone upscale, according to Jim Dorn, director of special markets, Regal Ware, Kewaskum, Wis.

"Cookware with darker charcoal matte finishes and a nonstick surface with a professional appearance and priced around $10 to $15 is popular in today's 4- to 6-foot supermarket cookware sets," he said.

Convenience is increasingly a major factor in choosing kitchen gadgets and bakeware. Supermarket customers "just have no time anymore," said Mike Rodrigue, president of Bradshaw International, Santa Fe Springs, Calif.

"The typical customer for that gadget and bakeware piece is a working mom, who tends to be younger, with children at home and cooking more. Therefore, time is her most precious commodity," said Rodrigue.

He agreed that consumers also are demanding better quality, and all major vendors in this category have improved their quality. Most kitchen tools and gadgets sold in supermarkets retail around $2 to $6, and from $3 to $8 in bakeware, which are about 30% to 40% higher from a few years ago, he said.

With convenience and speed in selecting products quickly a key to sales at the supermarket, retailers can increase cross merchandising with outposted displays to stimulate additional shelf turns, said Rodrigue.

"A power panel or spinner display with small related gadgets, like peelers, paring knives and graters, can be set in the produce section. Seafood-related tools can be merchandised at the seafood counter and food serving pieces can be placed near meat cases," he said.

Rodrigue added that stores that cater to moderate-income shoppers can sell more gadgets related to scratch food preparation, and that higher-end items, like wine openers, move at a faster pace at stores in higher-income areas.

Indeed, retailers can leverage housewares with the burgeoning home-meal replacement movement by positioning food storage prepack shippers, in-line sets and outposted displays, said Steven Burgoon, sales development manager, retail food at Corning Consumer Products, Corning, N.Y.

The manufacturer's Pop Ins -- single-serve dishes with an available thermal lunch tote -- are suited to meet the needs of those age 30 and over, as well as the single woman who cooks. Single women now represent 52% of the U.S. population," said Patricia H. Odinak, product manager, Corningware and Visions.

The products fit today's consumer and supermarket emphasis on prepared meals and meals to go, Odinak said.

In stick goods, ergonomically designed handle grips appeal to the aging population. Price points range from $1.99 to 3.99 for small brushes and cleaning devices, and $6.99 to $15.99 for brooms and mops, according to Andrew Libman, brand manager, Libman Co., Arcola, Ill.

"People want comfortable handle grips and more durable products. They have more disposable income to spend a little more when they are in the grocery store. A mop or broom in a nicer design also doesn't always have to be hidden away in a closet," said Libman.

Robinson Knife Manufacturing, Buffalo, N.Y., has introduced an upscale Oneida brand of gadgets, utensils and serveware, priced between $6 to $12. The products, to be introduced at the Housewares Show, will be in plum and lighter green, which are the latest colors, said Bob Skerker, chief executive officer.

Skerker said the aging population has influenced suppliers to produce kitchen tools and implements with ergonomically designed handle grips.

"The older population also tends to have the income to invest in these more expensive products," he added.