DALLAS--In an attempt to branch out from flat markets and garner sales in new retail channels, vendors that are not traditionally known for having presence in the hardware market are pursuing independent hardware dealers.
At the TruServ fall market, held here in October, consumer packaged goods vendors, known more for drug store and supermarket sales, made their debut at a hardware member market.
According to John White of Annapolis, Md.-based Compass Marketing, sales of Gillette and Tylenol products are either flat or declining at traditional grocery and pharmacy-related retailers. Female shoppers who once stayed home, prepared meals and did all of the shopping are not hitting grocery stores as often. As a result, more shopping is being done through a "fast food," hit-and-run style by both the men and women of the household, White said.
At TruServ's fall market, White represented a number of companies--including Gillette, Tylenol, Slim-Fast and Blistex--that have their eyes on getting their products in the hands of hardware store shoppers through impulse purchases.
Gillette, which claims it owns a 78 percent share of the razor and shaving cream market, is hoping sets of its razors and shaving gel will be a hit with independent dealers. "A good amount of our sales are impulse items," said Gerard Clifford, special markets manager for the Gillette Co., which also markets Braun, Duracell and Oral B products. "Razors are 'I need it, I need it now' items." Also, given that razors are impulse purchases. Clifford noted that shoppers are less likely to compare prices at other retailers.
"It's profitable," he said. "It's a nice cash register ring that has no competition."
Gillette already has penetrated the hardware market through the sale of Duracell batteries. Through similar merchandising platforms that include a small display designed for placement in the front section of a hardware store, Gillette hopes to sell packages of its razors and refills. Gillette's display, created for independent dealers, will feature six razors, six refill dispensers and shaving gels.
Reactions to the new strategy were mixed among dealers attending the market.
"As long as it's prominently displayed, it may sell--it is an impulse item," said Jim Lovass, manager and buyer at Strosniders Hardware Stores--a three-unit TruServ member in Bethesda, Md.
Some are welcoming the return of products not traditionally found in hardware stores. Richard Isaacs, manager and co-owner of R.W. Isaacs True Value of Clayton, N.M., is among them. The third-generation store had some success selling razors, including Bic and Gillette brands, in the past. "Twenty years ago, they were a big item for us," Isaacs said. However, the products no longer were made available to independent dealers. "I don't know whose decision it was, but they stopped pursuing hardware dealers and focused on grocery stores."
While razors had racked up sales a generation ago, Isaacs does question whether the products warrant shelf space today. "It is quite a bit of shelf space for a mom-and-pop store."
White said the same collection of companies p resent at TruServ's fall market is also targeting Do-It-Best and Ace dealers but did not have plans to enter the big-box home channel market.
Andrew M. Carlo is senior editor for Home Channel News, a Lebhar-Friedman publication.
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