SHURFINE INTERNATIONAL PLUGS IN CONTROLLED-LABEL APPLIANCES

JOEL ELSON

NORTHLAKE, Ill. -- Shurfine International here has introduced a proprietary hair-styling appliance line under the Studio Pro label.

The seven-item line was developed for retailers so they may more effectively compete against Wal-Mart and Kmart in the small electrical appliance segment.

The Studio Pro line includes four curling irons and three hair dryers priced 30% to 40% lower than national brands, according to Linda Voracek, product manager for small appliances at Shurfine. The products are manufactured by Conair, Stamford, Conn., which will supply Studio Pro for Shurfine.

"The Studio Pro line is a distinctive line with better margins than the little or no profit that supermarkets make selling national brands to compete with Wal-Mart and Kmart," said Sonny Ellis, director of health and beauty care and general merchandise at Associated Grocers, Baton Rouge, La.

In addition to the personal care products, Shurfine is developing a 10-item kitchen appliance line that will include a can-opener, toaster, iron, hand-mixer and carving knife. The line will be ready for shipping in February or March.

These appliance lines will be presented at the Shurfine members' meeting and buying show in Fort Lauderdale, Fla., in January. Shurfine's controlled-label customer base includes 22,000 food stores, 50,000 convenience stores and 6,000 drug stores.

The new small appliance mix will position retailers "to better compete against the mass merchandisers in this product area," said Paul "Tuck" Jasper, Shurfine's president and chief executive officer. He expects some 4,000 to 5,000 food retailers will merchandise the new nonfood products.

While the kitchen products will be marketed under a different brand, the word "Pro" will be part of the name, with the first word connoting the idea of kitchen, he said.

Shurfine began offering the Studio Pro products, which carry profit margins in the 15% to 20% range, as a segment of its health and beauty care product mix this summer.

Ellis said that many Shurfine members had asked the buying organization to create a controlled-label appliance assortment that could be sold at competitive retails with the discounters.

"Independents cannot be competitive in small electrical appliances unless they buy as a group," he stressed.

Because of the aggressive pricing of mail order catalogs, appliance chains and discounters, food retailers "can't make a killing on small appliances. But you can certainly now be competitive on these products without losing money," stressed Ellis.

He said the hair-styling items will be cut into HBC hair care sections at store level, while the kitchen items will be merchandised in the cookware area of housewares aisles.

Roger McGinley, general merchandise buyer at Affiliated Foods, another Shurfine member, in Elwood, Kan., maintains "there's a market for small appliances and so I'll look at the full line at the buying show."

McGinley will review the lines at the Florida meeting. "Consumers prefer recognizable brands so that a new label may need time to build shopper interest and brand recognition. A coffee maker, for example, isn't an impulse item," said McGinley.

He said the new line could work well at store level provided enough space is devoted to the category.