The hammer is the very symbol of home improvement retailing, and the entry point purchase for home improvement consumers. Not surprisingly, the demographic skews young. The latest consumer research from Port Washington, N.Y.-based NPD Group also shows a movement toward specialization in product attributes and a movement toward “closer-to-home” purchasing.
Analysis: The warehouse home centers dominate the category in both dollar share and unit share. Moreover, the warehouse home center channel is increasing its lead. All other channels, except for specialty stores, lost share in both charts, according to the data.
Still, its important to point out that nearly a quarter of all hammers are sold in the mass channel (24.9 percent). “Mass still has a good focus on entry level tools, and it’s something they want to keep in their mix,” said Mark Delaney, NPD Group’s director of home improvement.
CHANNEL BREAKDOWN BY AGE OF CONSUMER
Analysis: The 18-34 group buys the most hammers by far. This demographic is more prevalent than average in the warehouse home centers (43.9 percent), and less prevalent in the hardware stores (42.5 percent).
Analysis: While still dominant, the basic claw/rip/framing hammer head lost share in 2008, revealing a trend toward specialization in hammer sales. All other types showed an increase in dollar share. Another clear trend was the movement toward wood handles, up 2.3 percentage points. Wood handles would seem to reflect a back-to-basics approach on the part of consumers.
The average price paid by consumers is $11.34, up from $10.46 in the same period last year. Not surprisingly, the mass channel averaged the lowest price point ($8.95), while the pro-oriented LBM supply stores averaged $15.26.
Analysis: Close to home rose 4. 1 percentage points as a reason for shopping a specific retailer. Not surprising given the impact of gas prices on the consumer wallet. But once the customer is in the store, the concept of a “trusted brand” is gaining importance. Delaney offered three ideas: 1.) “First, hammers are still a low-priced category, 2.) It’s a necessity. It’s one of the first tools you’ll ever need. 3.) It also benefits from the renewed focus on small projects.”
Methodolgy NPD data is based on monthly tracking of nearly 70 categories, to 30,000 opt-in customers. The data above reflects the period July 2007 to June 2008.
Handy Hardware fully operational after Hurricane Ike
Less than a week after Hurricane Ike struck the Texas Gulf Coast, Handy Hardware Wholesale, is operating at full capacity, the Houston-based company announced.
“We have resumed all normal delivery schedules and continue to focus on the service to our member-dealers, as well as our employees in the aftermath of such a horrible natural disaster,” Handy Hardware president Tina Kirbie said.
According to Mickey Schulte, vp-marketing and purchasing, there was minimal damage to the operation, which allowed the distributor to focus on the needs of its member-dealers. “Our fleet suffered no damage, and we had limited damage to our inventory. The minor repairs to the roof of our 560,000-square-foot warehouse are already complete,” he said.
Established in 1961, Handy Hardware Wholesale operates in 10 states, mostly in the South and Southeast.
Lowe’s, NASCAR’s Johnson raising money for Ike victims
Lowe’s, along with NASCAR driver Jimmie Johnson, will be raising money for victims of Hurricane Ike when Johnson participates in the NASCAR Spring Cup Race this weekend at Dover International Speedway in Delaware.
Through “Racing for Relief,” Lowe’s will donate $48 for every lap of the scheduled 400 laps that Johnson completes to the American Red Cross to help provide shelter, food, counseling and other assistance to victims of Ike and other 2008 hurricanes. In addition, if Johnson wins the race, Lowe’s will donate an additional $4,800.
As part of the promotion, the Red Cross logo will be displayed on the deck lid of Johnson’s No. 48 Lowe’s Impala.
Funds raised through Lowe’s Racing for Relief will supplement an existing $1 million Lowe’s donation to the American Red Cross. More than 1,575 Lowe’s stores nationwide are serving as official cash donation sites to benefit the American Red Cross relief efforts throughout the 2008 hurricane season. Lowe’s will match in-store contributions dollar-for-dollar, up to $250,000.
Since partnering with the Red Cross in 1999, Lowe’s has raised more than $17.5 million for disaster relief.