Minding the storage
The garage has been called the “man cave” and “the last frontier of home improvement.” Either way, garage storage and the related category of tool storage are areas of opportunity for home channel merchants.
“Garage storage is an up-and-coming category,” said Mark Delaney, NPD Group’s director of home improvement. “Whether that’s a fad or a trend, I’m not so sure the jury is in yet.”
Consumer research from the NPD group shows the big-box, warehouse home centers as the dominant channel for both tool and garage storage spending. (See charts 1 and 2.) But the mass merchant may be the most interesting player—dollar share and unit share in the mass channel both showed increases in the first three quarters of 2007. And while the mass channel showed 10 percent dollar share in tool storage, it showed 19.3 percent unit share, reflecting lower price points. (See chart 1.)
“Garage storage is somewhat immune to the housing market,” said Delaney. “It’s not like a kitchen category. The folks who are going to go out and redo their garage will do it regardless of what the housing market is doing.”
The two related fields show dramatic demographic differences. Almost 44 percent of tool storage consumers are in the youngest 18 to 34 age bracket. But only 26.1 percent of garage storage and organization consumers are in the 18 to 34 age bracket.
The portable plastic toolbox and shelving are the two product types that lead each of their respective categories. (See charts 3 and 4.) Though still relatively small, hardware stores have the biggest impact on the “wall mount/rack” category type—with 7.2 percent.
“Storage and organization used to be merchandised only once or twice a year, for spring cleaning or after the holidays,” said Delaney. “That’s not the case any more.”
Where Are Consumers Buying?
What Are Consumers Buying?
Who Is Buying?
In the under-$25,000 income bracket, women account for 69.3 percent of the dollars spent on garage storage. In the over-$100,000 income bracket, men account for 71.2 percent of the dollars.
Warehouse clubs account for only 2.2 percent of total tool storage unit share, but 6.0 percent of stationary tool cabinets and 3.4 percent of rolling tool chests.
NPD’s Consumer Tracking Service is based on monthly tracking of 30,000 opt-in respondents in 70 categories. The data above reflects the period from November 2006 to October 2007.
FBMA elects new officers
The Florida Building Material Association (FBMA) has elected Brad Wanzenberg of Deerfield Builders Supply as its new chairman. Wanzenberg, whose term started on Jan. 1, is executive vp of the Tampa Bay chain, which operates locations in Deerfield Beach, Clearwater, Fort Meyers and Sarasota.
Other FBMA board of directors elected for 2009 include: Dennis Vlassis, Gulf Stream Builders Supply, as treasurer and the chairman-elect; Wade Jefferson, Beaver Door & Trim, as first vice chairman; Bridget Pulsifer, Mills & Nebraska, as secretary; and Don Magruder, Ro-Mac Lumber & Supply Company, as national dealer director and immediate past chairman.
Founded in 1920, FBMA represents building material dealers and suppliers throughout the state of Florida.
Do it Best launches credit card program
Do it Best Corp. has partnered with Shoppers Charge Accounts Co. (SCA) to develop and administer a new private label credit card program for its dealer-members throughout the United States, SCA announced.
The new Do it Best credit card will provide such special features as 90-day and six-month “same-as-cash” extended payment terms.
“Through our partnership with Shopper’s Charge Accounts Co. we’ve had many members show interest in this program as a way to help them get away from house accounts, plus offer their customers new purchasing options such as 90 days, 6 months or 12 months same as cash,” said Chris Hill, interim retail programs coordinator for Do it Best.
Headquartered in Mahwah, N.J., Shoppers Charge Accounts Co. ranks among the nation’s largest private label credit card companies. A division of TD Banknorth, N.A., the company launches and administers new credit card portfolios for brick-and-mortar, Internet and catalog merchants, and acquires retailers’ existing credit card portfolios.