Connecticut hardware store to close
Bunnell Paint & Hardware in New Haven, Conn., is going out of business after 33 years, according to the New Haven Independent.
Owner Len Mullally has owned the store since 1975, when he converted it from a paint and wallpaper store to a hardware store. He is expected to close his doors by the end of October. The 74-year-old Mullally said he will retire.
Functional or fad?
Port Washington, N.Y.-based NPD Group has released data from a consumer survey of the most popular items in one of the most trend-focused home channel categories — small appliances.
The group noted that in the year ended August 2008, the categories with the largest percentage growth in unit sales across specialty kitchen electrics were jar openers, electric kettles, popcorn makers and tea makers. The biggest unit declines were chocolate fountains, electric rotisseries, pizza ovens and roaster ovens.
Electric kettles were the largest category in all specialty kitchen electrics tracked by NPD in the 12 months ending August 2008 (23 percent of units, 19 percent of dollars). The category grew by 21 percent in units and 28 percent in dollar sales. According to the NPD Group’s National Eating Trends, per capita or per person consumption of tea in the home has been steadily increasing over the past five years.
On the other end of the spectrum, chocolate fountains had the largest percentage of unit and dollar declines in the specialty kitchen electrics category, resulting in a 51 percent unit sales decline and a 48 percent dollar sales drop. Chocolate fountains were a big trend in recent years, with the largest growth among these specialty categories in the 12 months ending August 2007, nearly tripling dollar sales of the previous year and quadrupling unit sales.
“It’s noteworthy that specialty kitchen electrics such as popcorn makers, tea makers and electric kettles are showing such substantial growth in the past year,” said Peter Goldman, president of NPD’s home services. “Despite economic turmoil, consumers are seeking comfort and convenience to enhance their stay-at-home lifestyle. Tea and popcorn makers certainly fit the healthy living trend as well.”
Goldman added that in a rougher economy, consumers likely won’t be looking for the latest fad, “or a product that does not offer real value to their everyday lives.”
“Electric jar opener growth is a good example of this and can be attributed to an aging population,” he added. “In this regard, we anticipate seeing more successful specialty appliances geared toward this population as the opportunities there continue to grow.”
Analyst: Home Depot price cuts appear to be working
Deborah Weinswig, an analyst for Citigroup, has released a research note saying that Home Depot’s recent efforts to slash prices on approximately 1,200 items in stores appears to be successful so far.
Weinswig said the pricing shows early signs of success, and customers also appear to be leaving stores with more overall products purchased, leading the results from the cuts to “exceed expectations.” She added, “In light of the difficult environment, HD is focused on delivering a more relevant merchandise assortment to customers and improving service levels in the store to drive sales and gain market share.”
In mid-September, Home Depot voted to cut prices on various items throughout its store in a bid to boost sales and grab market share — prices on one in every 25 items in stores were cut from 5 percent to 50 percent.
Insulation and thermostats, toilets, trash bags and paint all were on the agenda for the price cutbacks, the retailer said. In all, 1,200 items saw prices slashed through the initiative, which is expected to continue through the coming quarter.
Tough economic indicators — falling home prices, a rocky performance on Wall Street –all undoubtedly led to the decision to scale back on pricing. But there are some other, longer-term goals, Home Depot CFO Carol Tome pointed out, saying some price cuts all have the strategy of establishing “everyday value” in an economic downturn.
“By moving to a strategy where every category has a role and intent, it means that pricing should have a role and intent as well,” she said at the recent Bank of America Investment Conference in New York. “So if you look at a category, for example, like a destination category, say, insulation; we have been heavily promoting insulation. There is no need to promote insulation, we just need to move to everyday value, and that’s what we’re doing. We are moving away from promotions to everyday value.”