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Mass merchants a threat in tools, flooring, lawn and garden

Even as the industry's retailers look to expand beyond traditional product categories that have defined them, mass merchants continue make selective forays into the home improvement field.

Wal-Mart, which already sells more home improvement-related merchandise than any retailer other than Home Depot and Lowe's, continued to expand its commitment within a range of categories. Early this year the world's largest retailer stated that it would phase in 112 skus of Stanley hand tools, mechanics tools and tool boxes at all 2,600 of its discount stores and super centers in the United States. As part of the deal, Wal-Mart agreed to discontinue its line of private-labeled carpenters' and mechanics' hand tools.

Wal-Mart also launched a 12-store, mid-summer test of the sale of General Electric refrigerators, ranges, freezers, dishwashers, washing machines and dryers as well as over-the-range microwaves, thereby joining Home Depot, which rolled out its own program to 300 stores last spring; and Lowe's and Sears in the already competitive appliance category. At the same time, the retailer's Sam's Club division reached an agreement with Maytag to expand the 463-unit membership club's appliance inventory.

Perhaps Wal-Mart's most interesting move on home improvement came online, not in its stores. In the fall, the retailer snatched up financially challenged e-tailer HomeWarehouse.com and folded it into its own stand-alone online component, Wal-Mart.com. HomeWarehouse, which was in business for one year, offered a core assortment of hardlines in addition to how-to information and project advice.

Kmart, meanwhile, exacted a more measured approach toward selling home improvement products. In targeting its core customers -- time-pressed mothers -- the retailer expanded its proprietary relationship with Martha Stewart's line of Everyday products while cutting back on peripheral departments, such as hardware and tools. Among the expanded offerings were 650 Everyday Kitchen Collection products and Stewart's Everyday Garden product line, which includes outdoor decor items, seeds, plants, tools and patio furniture. Included among the various new items offered are premium roses, trellises, shepherd's hooks, steppingstones, wind chimes as well as yard ornaments.

# posted by Medical Information : 3:33 AM