Housewares in the House

A strong merchandising plan that incorporates on-trend products can generate impulse sales in the housewares department.   Bread, milk, eggs, meat, mop. One of these things is not like the others. Many shoppers go to the grocery store with bread, milk, eggs and meat on their shopping lists, while an item like a mop typically does not make the cut. Most items in a grocery store’s housewares department are not usually top-of-mind for consumers when they enter the store. However, with a product mix that targets key trends, in addition to a well-thought out merchandising strategy, retailers can inspire impulse purchases that could very well land that mop—or another housewares item—a spot on a shopper’s list the next time they visit the store. “Many grocery retailers understand the value of offering their customers complete solutions that include the tools to prepare foods, to clean and organize the home, and to solve other domestic issues,” says Perry Reynolds, vice president of global trade development for the International Housewares Association, based in Chicago. “Given the fact that housewares products offer a significantly greater profit than traditional grocery products, those stores that are implementing these solutions are recognizing bottom line benefits.” A housewares department can run the gamut when it comes to the variety of product categories on the shelf. However, Michael Silverman, senior vice president of marketing for Marlborough, Mass.-based Butler Home Products, says for grocery, the focus is typically on synergistic categories like food prep, cooking, cleaning and other complementary items. With limited shelf space, determining which housewares products will work best—and where—can be challenging for retailers. Industry observers say that when considering which items to include in a housewares set, retailers need to understand their primary customer base and stay abreast of the latest product trends. Healthy living, design and convenience are a few trends that retailers should note, say observers. “The broad umbrella of healthy living, which includes healthy eating, healthy homes and healthy cleaning, will be popular in 2015 and beyond,” says Reynolds. “The other continuing trend is the impact of design across all housewares categories. Whether designers chose to focus on human factors that make a product easier to use or on more technical features, their goal is to revolutionize the way that we live, work, clean, organize, cook, serve and dine.” Manufacturers aim to hit these points with new product introductions. Bradshaw International, which produces the GoodCook and Sweet Creations brands of cookware, bakeware, and kitchen and cooking utensils, understands how design can influence a purchase. “We have found that color accents tend to do better than a product of full color,” says Mike Rodrigue, CEO of Bradshaw International, based in Rancho Cucamonga, Calif. “In other words, our consumers like designs that are good in taste rather than a gaudy look.” GoodCook’s Touch brand of cutting boards features a pop of color that is not overwhelming or flashy. Food transport items—to take food and baked goods to an event or party—have also been noteworthy, adds Rodrigue. He says the company’s Sweet Creations Cupcake/Cake Pop carrier makes transporting baked goods simple and secure with its sturdy display stand and latched case with handle. “These innovations are all things that speak to the way we live our busy, socially engaged lives today,” says Rodrigue. Hydration is another trend that is becoming a category and department unto itself, says Hank Roth, executive vice president and co-founder of Cool Gear International, based in Plymouth, Mass. “There’s a move toward better quality and automatic functions,” Roth says. “Hydration is an everyday business. More retailers are promoting from their basic planograms.” Ideavillage Products Corp., based in Wayne, N.J., has an item that not only hits upon the hydration trend, but also touches on another noteworthy craze: snacking. “Our Snackeez two-in-one cup combines the two hottest trends in the category, which is snacking and hydration,” says Ronald J. Boger, president and COO of Ideavillage. Snackeez features a 16-ounce cup with a 4-ounce snack cup that fits inside the drink cup. It comes with a straw, and the snack cup has a flip-top lid that seals to keep snacks fresh and prevent spills. Last year, the company launched a kids’ version that features Disney’s Frozen, and in 2015, the company will add Minions, Star Wars and Shopkins licenses to the kids’ cup. “We just launched the Snackeez Duo, which is our disposable and reusable Snackeez, and it comes in a 10-pack for $10,” Boger adds. “Snackeez has been growing by leaps because it is an item that can be easily cross merchandised with snacks, cereals and beverages,” Boger says. “Those are three categories that are heavily stocked and promoted during every season of the year. It is an opportunity to get additional merchandise in the basket at strong margins with the additional purchase of the snacks.” Cross merchandising is one of the best ways for grocery stores to draw attention to their housewares items, observers say. “Grocery retailers continue to maintain one distinct advantage in housewares over other retailers: shopping frequency,” says Reynolds. “Even if the customer is not intending to buy housewares at a grocery retailer, a cleverly cross merchandised supermarket can yield significant additional housewares sales.” However, not all housewares items are created equal when it comes to cross merchandising. Some items can be more challenging than others to co-locate within a store, prompting retailers to think outside the box to inspire impulse sales. Candles are a prime example, says Don Kauffold, vice president of marketing for Candle-Lite, based in Cincinnati. “If food retailers can find innovative ways to display candles, for example, as gifts during certain times of the year, or if you can display candles in the flower section during Mother’s Day, that can really stimulate a lot of impulse purchases in a category that can deliver nice margins,” says Kauffold. “It also reminds their shoppers that their food retailer carries candles, and the idea is to remind them enough that they put it on the list.” Capitalizing on floor space can be another solution to merchandising challenges in the housewares department, says Helen Hattabaugh, marketing/product development manager at Hanna’s Candle Co., based in Fayetteville, Ark. Hanna’s offers a quarter- and a half-pallet program for its Aromabeads Singles wax melts and warmers line, which is available in 48 fragrances and colors that cover all fragrance categories. “These can obviously be placed anywhere, but if placed and merchandised correctly, these programs could even be changed out seasonally, generating incremental sales,” says Hattabaugh. While cross merchandising and off-shelf displays are imperative to generating impulse sales, Steven Yde, divisional vice president for Sterling, Ill.-based Wahl Clipper Corp., says the key to merchandising housewares is to make it feel like a destination. “Don’t dabble, commit,” Yde says, adding that Wahl offers several products in the grocery channel, including beard clippers, massagers and pet clippers. “Think about redundancies in pet food, wet shave, vitamins, etc., and think about core items people need. Each segment will have a different path.” Promotions are essential to making the housewares department a destination, and some manufacturers like Eldora, Iowa-based Whink Products, which makes specialty cleaners, are betting on the power of promotion. “What we’re trying to do here at Whink is inspire multiple purchases,” says CEO and president Steve Throssel. “We offer a coupon for buy two, get two, which is our big push. It triggers a multiple purchase, so if a customer buys two items, they get a discount, the retailer gets an extra sale and we get an extra sale. It’s a three-way win.”