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Our Trend Report Series continues this month with a look at the Small Electrics category. Throughout the year, we've taken Store Operations, Cookware, Packaged Goods and the Deli into the world of cyber surveys to provide you with an overall analysis with which to compare your store. So now it's time to look to your store shelves and review your small electrics inventory from coffeemakers to toasters.

Small electrics comprise one of those categories that no store can be without, but it's also a category for which retailers struggle to find the perfect mix between breadth and depth. Its sometimes-low margins and high price tags make it a precarious balance. We asked your retail peers to respond to an online survey with a series of questions geared toward the category. We've created charts and graphs detailed with a few additional analyses to help you determine how your small electrics inventory stacks up against those of your peers.

Power up Your Inventory
Kitchenware, Specialty Food and Gift/Gourmet Stores responded to our survey, telling us such things as the average amount of square feet they allot to small electrics and revealing their average margins. Margins averaged from 30 to 40 percent, with Kitchenware stores reporting the lowest margin of 31% and Gift/Gourmet the highest stores at 40%. Kitchenware stores also saw the most sales for the category, with $101,730 in average gross sales for 2005. Coffeemakers were the top-selling category for small electrics for all retail channels responding.

Average Number of Small Electrics Lines Carried
Cookware Kitchenware Stores — 9.8
Specialty Food Stores — 6.8
Gift/Gourmet Stores — 3.7

Average Amount of Square Feet Devoted to Small Electrics
Cookware Kitchenware Stores — 214 square feet
Specialty Food Stores — 76 square feet
Gift/Gourmet Stores — 46 square feet

Average Margins on Small Electrics
Cookware Kitchenware Stores — 31%
Specialty Food Stores — 38%
Gift/Gourmet Stores — 40%

Average 2005 Gross Sales for Small Electrics
Cookware Kitchenware Stores — $101,730
Specialty Food Stores — $17,781
Gift/Gourmet Stores — $47,142

Future Power Sources
Sales projections look good for all retail channels. Last year, Kitchenware retailers relate a 68% increase from 2004 to 2005 and Specialty Food Stores, a 56% increase; while Gift/Gourmet saw a 49% increase for the same time period. Projections for small electrics sales for 2006 are positive, with 65.4% of all Kitchenware stores projecting increased sales, while 55.6% of all Specialty Food Stores and 51.3% of all Gift/Gourmet Stores expect small electric sales to increase.

When asked what drives their customers to purchase small electrics, Kitchenware retailers rate the number-one reason as quality, while other channels find their customers focus on brand names.

Top 3 Small Electrics Sellers
Cookware Kitchenware Stores
1. Coffeemakers
2. Food Processors
3. Stand Mixers

Specialty Food Stores
1. Coffeemakers
2. Grinders/Slicers
3. Expresso/Cappuccino Makers

Gift/Gourmet Stores
1. Coffeemakers
2. Blenders
3. Toasters

Most Important Factors in Customer Purchase Decision
Cookware Kitchenware Stores
1. Quality
2. Features
3. Brand Name

Specialty Food Stores
1. Brand Name
2. Price
3. Quality

Gift/Gourmet Stores
1. Brand Name
2. Quality
3. Features

Top 3 Ways You Merchandise & Promote Small Electrics
Cookware Kitchenware Stores
1. In-store Demos
2. Window Displays
3. Cross-merchandise with other products

Specialty Food Stores
1. Cross-merchandise with other products
2. In-store Demos
3. Print Advertising

Gift/Gourmet Stores
1. Cross-merchandise with other products
2. In-store Demos
3. Bridal/Gift Registry