UNITED SUPERMARKETS TRADES UP COOKWARE

JOEL ELSON

LUBBOCK, Texas -- United Supermarkets is testing cookware and bakeware in a format similar to a department store assortment.

The new sets, which add 12 feet of space to what was a 6-foot section, were placed at three stores last month. The 43-store chain plans to roll out the new merchandising format to 11 additional units as it revamps and remodels stores into next year, said Steve Paul, director of general merchandise and health and beauty care.

"We're trying to get more of a department store kind of flavor rather than having merchandise look like it's just laying on a grocery shelf," Paul explained.

The new sections carry a variety of items displayed on tilted shelving under lighted canopies. Skillets are hung on hooks similar to how products are displayed in a department store's housewares section. Pots and pans occupy two thirds of the space and bakeware makes up the remainder of the section.

The retailer has covered the shelving and gondola backs of the cookware department "with a material to make the products pop and for a better presentation. We've added Plexiglas retainers so the products stand up for a full presentation to the consumer."

The new planogram includes assorted sizes of fry pans, skillets, griddles, cookie sheets, stew pots, muffin tins and loaf pans priced up to $20.

Paul said he planned the new alignment around the idea that "if the presentation is right the potential is greater."

Before the concept is rolled out chainwide, United will monitor sales at its test locations.

"We want to find out if what

we think makes sense, really does make sense. We'll begin to target hard figures that we want to make overall for the section. We'll find out if it makes sense to allocate this kind of space," said Paul.

The nonfood executive also is contemplating higher quality, more expensive cookware in the $30 to $50 price range for affluent store locations.

"To sell it at the higher price point, the presentation has to be right. And although we can gradually nudge that product quality on up to the next level and approach higher price points, I'm not sure where the top might be, or if there's a real limit," asserted Paul.

So first United will proceed cautiously and test popularly priced merchandise before adding higher-priced items.

"We feel these departments have a synergy with foods that we have not addressed well in the past, and that's where our greatest opportunities are," Paul said.

Merchandising plans involve off-shelf promotions and stronger ad exposure for cookware and bakeware during the end of the year.

United also has started to introduce a broader line of gadgets in better selection beyond its everyday line.

The strategy is aimed at widening variety at half its stores, mostly in its larger markets. With the larger gadget mix, prices will be higher, topping at $7 to $8 rather than $5 as the everyday line does.

"We wanted to broaden gadgets into a more complete range of around 150 stockkeeping units from a smaller assortment that offers shoppers only a narrow selection," noted Paul.