Getting a hold on storage
Storage and organization is a growing category in the home channel. The rise of California Closets and Container Store to national prominence helps the case, and so does Oprah Winfrey devoting entire shows to helping people organize their homes.
Major distributors have increased their storage and organization offerings in recent years, devoting more space to the category at the markets and creating extensive planograms that can fit any size hardware store.
“Organization is in,” said Robbie Kaplan, a buyer for A Few Cool Hardware Stores—a chain of five Ace Hardware stores in the Washington, D.C., area. “With all the multitasking we all do, organization is a must, and there seems to be no end in sight for having busy lives.
“From publications to television shows, consumers are constantly shown tips on living a better organized life, and this inspires people to purchase.”
According to Kaplan, the storage and organization category has changed in that people are more style-conscious when looking for organization options. They don’t want the same old clear under-bed container. They want something made of a different fabric or in a trendy color. She said her stores are selling more containers that can be collapsed when not in use, such as food containers or strainers. “Items like this not only save space in urban homes but add some fun to storage,” she said.
The amount of space A Few Cool Hardware Stores devotes to storage varies by location. For example, one of the stores is directly under a Container Store, so limited stock is carried there. However, another store has a small specialty room in the back dedicated solely to storage solutions. Kaplan said she tries to stock a large variety of sizes and styles that will work for the suburban home as well as the urban apartment. “We cater to the neighborhood and its needs. I would say in general we have from 16 to 52 linear feet of products.”
Among the lines carried at A Few Cool Hardware Stores are Schulte Storage Solutions, which specializes in over-the-door and wall-mountable hooks and hangers, as well as bath and kitchen solutions like shower caddies and utensil crocks. There are also unique products—including Zevro’s dry food dispenser and Progressive’s herb keeper and stylish pill holder—and Kaplan has started to do well with higher-end shelving products from Sumo and Dolle, companies featured at the last two Ace markets.
“Some of our Washington, D.C., neighborhoods have high residential turnover, so removable or portable items are most popular,” she said. “But installing a closet line like Schulte will raise the value of real estate, so we do a fair number of closets.”
Alan Shore, an Orgill buyer, said closets, kitchens and garages are the three main areas of focus in storage and organization. However, like most other home improvement categories, this too has suffered in the down housing market, he said. “A lot of storage and organization is predicated around new home building, which is not good at this point. We are seeing quite a bit of change in the overall customer, as people are renovating their homes instead of selling them.”
Whereas storage and organization used to be heavily contractor-based, the economic downturn has opened the way for more consumer-grade closetkits and shelves, Shore said. Closet Made kits and Knape & Vogt shelves and standards are among the products that homeowners are buying and installing themselves.
“Closet Made was 70 percent contractor, but it’s shifting. DIYers are starting to get involved,” he said.
Another category gaining traction in hardware stores is moving and storage supplies, according to Mitch Weinreb, president of All Boxes Direct in Huntington Station, N.Y. Since introducing a consumer-friendly product line into the hardware channel in 2000, the company is now in more than 3,000 Ace, True Value, Do it Best and Orgill locations.
In addition to boxes, dish protection, bubble wrap and mattress bags, All Boxes Direct offers several planograms and displays, as well as indoor and outdoor signage. According to Weinreb, a “We sell boxes” sign on the outside of a store can boost the category some 20 percent. Interior signage is also important, as studies have shown that many people visit a hardware store 30 to 60 days before moving.
“If they see a sign, they might say, ‘Oh, I’ll have to go back to the hardware store to get boxes,’” he said.
David Jolly, merchandising manager for the Russell Do it Centers chain in Alexander City, Ala., said Do it Best has increased its storage offering in recent years. But with an average footprint of 10,000 square feet, Russell Do it Centers is only able to devote an aisle or so to the category, making it difficult to compete with the big boxes in this area, Jolly said.
Where the nine-store hardware chain is able to do well is with portable shelving, which Jolly said people think of as a “hardware store item and not a Wal-Mart item.” He also does well with special orders, using the Do it Best spring and fall catalogs to show the breadth of selection to customers. “For us, the luxury to show and order works well and is a convenience to our customers,” he added.