Top Stories » Special Features » Kitchenware

Market analysts have been warning retailers and vendors for the past year that mid-priced products are facing a challenge from consumers. Concurrent with this challenge is an expected growth in lower-priced selections, as well as an increase in high-quality specialty products. While it's great news for specialty gourmet retailers, you still have to be prepared to explain the difference between the highs and lows to illustrate to consumers why the products you offer are better than those at the discount store down the road.
In the cookware category, price is definitely a critical issue. The specialty end of the market understands the value and quality of great cookware. We are invested in the lifetime warranties. We are polished in our category presentations. But unless you're getting the message to your customers as to why high-quality cookware is essential to great cooking, you may be experiencing sales that are sluggish instead of sizzling.

The Marketplace
According to a retail research study conducted by Research USA, Inc. in 2004 for The Gourmet Retailer Magazine and the International Housewares Association, the cookware category represents nearly 20 percent of the total store business for more than half of the kitchenware retailers responding. Another 18.6 percent of kitchenware retailers estimated that the category generates 20–29 percent of their total business, while for another 10 percent, cookware produced 30–39 percent of their total sales. Furthermore, nearly 30 percent of kitchenware store respondents predicted that cookware would be one of the fastest-growing product categories in the next 12 months.
According to NPD's Houseworld POS data, the number of cookware units sold during the first half of this year reached 12.65 million. Sales figures from January through August 2004 show aluminum cookware comprised 37.9 percent of sales in all retail channels combined, while 33.7 percent of those sales belonged to stainless steel. Cast iron captured 2.8 percent of the market, while anodized aluminum cookware comprised 17.5 percent.
Significant innovation in the cookware category continues to push consumer products to the performance level often found in the commercial market. According to a report from NPD, a growing number of manufacturers are continuing their emphasis on product lines that feature professional performance capabilities, such as optimal heat circulation, greater pan capacity, and easy cleanup.
At retail, consumers are consistently reaching for stainless steel versions. Stainless steel's popularity is being spurred on further by the overall commercial kitchen trend, as well as endorsements from professional chefs. Cookware products featuring stainless steel as the primary material accounted for roughly 34 percent of category products sold in 2003, according to NPD Houseworld's POS information.
Vickie Griffeth, buyer-manager for East Hartford-based Everything for the Kitchen, said that stainless steel cookware leads the way for the category in her store.
"People like the cleanup, the reaction, or more specifically, the nonreaction that it has with food and its durability. All-Clad by far outsells any other brand that we carry. The new ranges of sizes that they are coming out with are really meeting consumer needs. For example, their 1-quart reduction pot and small stir-fry pan are great if you're single. The grill pans are still very popular," Griffeth explained. "With regard to shapes, a 12-inch stainless steel fry pan is still the king of cookware. It has a multitude of uses. You can saute chicken breasts, deglaze, and even make a quick pasta dish in it."

Old-time Favorites
Still, even with stainless steel's popularity, a cookware old-timer is making new waves. The most common metal for pots and pans in the Western world was iron until the 20th century but as new materials came to the kitchen, this long-standing cooking material began to lose its footing. However, with technological advances and education on its proper uses, this old favorite is finding its way back into favor.
Griffeth explained, "Cast iron frying pans are selling well, too. It's a trend of going back to the old-fashioned grandma's cookware. If you are going to sear a steak, there is nothing like cast iron. The pan doesn't cool down when you put the meat in it, it just sears, and meat caramelizes beautifully."
Making sure that customers are aware of how to treat and care for cast iron is a part of the selling equation. Old-fashioned black cast-iron pans hold heat well, ensuring evenly cooked cakes and breads. Uncoated cast iron needs to be seasoned and properly maintained; otherwise, the metal can rust and peel. Manufacturers have developed preseasoned cast iron that's helped to feed the resurgence in the category.
Additionally, nonstick enamel cast iron continues to be popular with retailers and consumers alike. Mikell Gleason, co-owner of The Rolling Pin in Athens, Ga., is having trouble with her cookware sales but says enamel cast iron is one area where customers are loyal.

A Hard Sell
Even with the popularity of stainless steel and shifts in consumer purchasing, there are pockets of the country where the category is experiencing a slowdown in sales. Whether it's simply finding the right mix or shifting inventory, some retailers reported mixed results for cookware.
Gleason has struggled with the cookware category since taking over her store two years ago.
"It's not our best category and we are still trying to figure out what people want. Part of our problem, I believe, is that the inventory was spotty and perhaps not stocked well," she began. "We just received Viking and it looks great. We've done well with their mixers which we brought in this spring, so I am hoping the cookware will do something for the category."
The Rolling Pin's inventory includes high-end stainless steel, traditional nonstick, cast iron, copper, and enameled cast iron. Her focus is on open stock as sales of most full set sales occur during the holidays.
"We always educate people and perhaps they go off and buy it somewhere else. People are always asking us what they should buy, but it's really up to the individual, what they cook, and their level of culinary skills," Gleason said.
Sophia Kim, owner of the Kitchen Plus in Escondido, Calif., struggles against the competition of neighborhood department stores. To counter her limited square footage, she focuses on two lines of cookware.
"I don't have the space to compete with the department stores that have deep pockets," she said. "The lines I carry support me with great national advertising campaigns, although one of them has lowered their exposure recently and I have experienced a drop in sales. I think the competition against the Euro has also hurt sales."
Nancy Fuhrman, owner of Easy Cookin' in Boise, Idaho, said she's experienced a bit of a leveling off of cookware sales. Still, she sees the category as a great holiday sales item.
"Holidays are the best time for cookware," she said. "Stainless steel is the best selling material within the category. Emerilware also seems to be doing well and it's a good value for the money. Sales for anodized have dropped off -- I really believe customers are looking for the best quality for the best price. Price consciousness is very high in this category."
Billie Shepard, owner of Helena, Montana-based The Pan Handler, says her customers are still standing behind the category. Her stress with the category is the discontinuation of certain products within the brands she carries.
"I really find the changes frustrating," she said. "There has been quite a bit of discontinuation with a couple of branded lines. It makes it difficult to meet the needs of our customers. Sales are fair. But right now, I find myself having to sit down and analyze what lines we carry and possibly change the mix."

Education & Sales
Retailers focused on increasing their cookware sales rely heavily on one-on-one customer relations and vendor educational materials. While many can pinpoint the styles and shapes that sell well, they also say the opportunity to talk about the category to the customer is what really closes the sale.
"We still sell more skillets than anything. We sell sets during the holidays, but when most people are buying cookware for themselves, they are looking for an open stock item," Shepard said. "Within those sales, specialty pans garner interest. We try to have crepe pans and paella pans and they sell well. In fact, we just sold our last paella pan. For a small store, I am always surprised that we do sell as many specialty pieces as we do. Probably the most-sold specialty piece would be the multicooker with the insert for pasta/steamer basket."
Shepard said her customers appreciate stainless steel and balance their purchases with some nonstick selections. In addition, a vendor push for some new anodized aluminum product is starting to gain both retail and consumer attention. But it's truly up to the retailer to be sure the customer understands existing product, new introductions, and changes in the technology.
"Most of the education we do is one on one. A lot of times, customers don't know what they are looking for. We have people who have purchased nonstick products at the big-box stores and they are tired of replacing them. They come to us finally to upgrade their cookware and we have to explain our lines and how to use the pan," Shepard explained. "We use any vendor materials available to us, as well as Try-Me pieces and gift with purchase. It makes a nice add-on for people who are looking to try new cookware."
Fuhrman agreed with the importance of education and vendor support, adding, "We explain how the cookware is made -- the different plys, the benefits of each metal, and qualities, such as even heating and the ease of cleaning. A lot of people won't look at any other finish than stainless because it's the only one that's dishwasher safe."
Fuhrman merchandises cookware close to the checkout counter to make it easier for salespeople to talk up the category to customers.
"You have to explain it in order to sell it. No one is going to spend the money on top-quality cookware unless they understand it. We hand out articles such as Cook's Illustrated brand ratings. This way, the customers feel better about the purchases, if they have done their homework," she explained. "Promotional pieces help quite a bit, as well as the literature. But I think the knowledgeable salesperson is what sells cookware the most. You have to know it to sell it."