With home improvement products sales on the rise, the hardware category is increasing becoming home to products once foreign to an industry more accustomed to standard tools and supplies.

Smart home technology is edging its way into hardware stores largely through home security systems, but with some professional tools adding Bluetooth for tracking their whereabouts. And outdoor entertainment products from premium coolers, tables and chairs to high-end grills and outdoor fireplaces are increasingly gain floor and shelf space at home improvement retailers from Home Depot and Lowe’s to neighborhood specialty stores.

The new trends in hardware come as the industry gears up for the National Hardware Show in Las Vegas next month (May 7-9) amid a forecast for a 5.3% in home improvement sales this year to $387 billion; with professional market posting a 4.4% gain and the consumer segment, 5.7%, according to the Home Improvement Research Institute.

“I think a lot of the movement into newer categories is fueled by the need for hardware retailers to find growth” for their brick and mortar business, says Daniel Tratensek of the North American Retail Hardware Association (NRHA). “One of the things that have so far kept home improvement retailers in a different class than toy and book retailers is that most products within home improvement still require some sort of explanation and assistance. You may know you need to buy a flush valve for a toilet, but you might want the option of talking to someone about whether it is the right product for the job.”

Among moves and trends in the hardware industry:

Stanley Black and Decker (SBD) is beginning to roll out its first Craftsman line since acquiring the brand from Sears Holdings last year. Craftsman will festoon 1,000 products across more than 80 categories, some core and others licensed. The latter will include wet/dry vacuums, lawn mowers, work gloves, gas blowers and ladders, says Caren Chacko of Beanstalk, which handles SBD’s licensing. Products will initially be available at Lowe’s – some already are on Lowes.com) but will later also be carried by Ace Hardware, Orchard Supply Hardware and other retailers. Amazon will start selling product – SBD-built metal storage products — in Q4. While SBD also licenses out the DeWalt name as a step-up from some of the same products being sold under the Craftsman label, says SBD’s Todd Snellenburg.

SBD purchased Craftsman from Sears Holdings last year (Inside Licensing Jan. 5, 2017) and has started to promote about 30 internally-developed Craftsman products, SBD CEO James Loree told analysts. SBD’s tools and storage business, buoyed by the Craftsman launch, is expected to post mid-single digit percentage sales increase this year, the company said. While SBD had forecast Craftsman generating about $100 million in annual incremental revenue, or about $1 billion over 10 years, “the time frame might be changing because the success of conversations” with retailers in terms of carrying the new line, Loree said.

Scotts Miracle-Gro is switching licensees in a few categories. American Lawn Mower Co., previously licensed for only for push mowers, is the new powered lawn & garden tool licensee with a 30-SKU assortment that will be shown at the National Hardware Show. The line includes blowers, edgers, string trimmers and lithium ion battery-powered lawn mowers. TTI Group was previously the licensee.

At the same time, Bond Manufacturing is readying a new line of Miracle-Gro digging and cutting tools as it replaces Acme Tools. There also will be a separate line under the Scotts brand, some of which will be delivered in 2019. “These have a few more innovations, but are more moderately priced,” says Glenn Neilsen of Scotts Miracle-Gro. A new licensee, Greenes Fence Co., also is introducing Miracle-Gro products for raised plant beds. Seltzer Licensing Group represents Scotts Miracle-Gro for licensing.

Smart home technology is finding its way into the home improvement business. The National Hardware Show will feature a “Smart Home Virtual Reality Experience” designed as virtual tour of a smart technology-equipped house. It will feature a half-dozen suppliers including Garage Smart Inc. (Wi-Fi garage door opener), GE Lighting (Amazon Alexa-equipped lamp and Bluetooth-based light bulbs), Jiawei Technology USA (licensed Duracell LED lighting products), La Crosse Technology (monitoring systems), Ring (video doorbells and security cameras) and Smanos (Wi-Fi home security).

Elsewhere on the show floor, Jem Accessories will be demonstrating its licensed Energizer brand Wi-Fi-equipped home security products (light bulbs, security cameras, motion sensors) that operates using an Energizer Connect app. The iPhone version of the app cam online in February; an Android version is due in the next few months, says Elie Chemtob of Jem. The technology also has found its way into so-called “smart tools” — supplier Milwaukee has introduced a One-Key platform that lets the user track its Bluetooth-equipped tools within 100 feet of a smartphone containing its app. SBD has countered with DeWalt Tool Connect, which lets users connect to Bluetooth-equipped 20-volt batteries to track when a tool is out of range or the battery is low.

“This year there are more products coming into market and people are starting to adapt to it,” says Chemtob. “The hard part is making it extremely simple, because while retailers have bought into the technology, consumers haven’t moved as quickly.”

Home entertainment is moving outside. The Hardware Show will feature an “Ultimate Backyard” exhibit space outside the Las Vegas Convention Center, showcasing the growing business of outdoor entertainment products that mixes patio settings with tailgating. What was once a casual affair is increasingly taking on a higher-end sheen replete with $150 chairs and tables and coolers from the likes of Yeti and Orca that can run up to $300, while Pelican Products is selling 20-qt. ($229) and 50-qt. ($499) models featuring licensed Realtree designs. Yeti itself has grown into a lifestyle brand offering caps and t-shirts to go along with its high-priced coolers. Westinghouse licensee EBI will demonstrating its massage chair not only inside the convention center, but also in the outdoor exhibit. The products all are part of a trend toward creating outdoor entertainment areas containing kitchens, bars and wine rooms, a movement that hasn’t been lost on retailers.

“Where in the past the retailers focused on things that happened in your home, now they are expanding into new areas adding products” that not only apply to an outdoor patio, but also tailgating and other outdoor events, says Scott McCormack of Picnic Time, which sells outdoor products under variety of licenses including Disney, Coca-Cola, Harley-Davidson and several sports leagues. “There is a growing realization from retailers that this is an untapped area. They are testing different markets and finding some success because they are offering something that wasn’t there before” in terms of higher-end, better quality outdoor products.

There also are some changes on the retail front. Pittsburgh-area supermarket chain Giant Eagle is launching a four-store test of Ace Hardware-labeled departments. A successful test could lead to a robust presence down the road; Giant Eagle has more than 400 stores in Pennsylvania, Ohio, Maryland and West Virginia.

Best known for their battles at retail in the battery business, the Energizer and Duracell brands are moving their competition into solar lighting. Aplan Lighting Products Inc. is fielding solar LED-based pathway and spot lights, while Jiawei Technology is countering with the Duracell brand which is sold through Home Depot. Alpan has largely sold the Energizer solar lights through QVC, but last year has product had co-brand “Costco Powered by Energizer” products in Costco stores. Sales of landscape lighting products – solar-powered pathway and spot lights as well as hard-wired low voltage (12 volts) versions – were about $500 million in 2017 and are increasing 3% a year, says Mark Miller of Alpan.

Contacts:

Alpan Lighting Products Inc., Mark Miller, VP Sales and Marketing, 847- 910-0039, mark@alpan.com
Beanstalk, Caren Chacko, VP Brand Management, 212-303-1112, caren.chacko@beanstalk.com
EBI Distribution, Grant Penney, Sales Dir., 450-420-1555 x225, gpenney@ebiweb.cb
Jem Accessories, Elie Chemtob, CEO, 917-209-8884
North American Retail Hardware Association, Daniel Tratensek, EVP,317-275-9400,dant@Nnrha.com
Pelican Products, Jeffrey Diamond, Dir. Consumer Product Management, 562-901-3640
Picnic Time, Scott McCormack, Licensing Dir., 805-222-2526, scott@picnictime.com
Scotts Miracle-Gro, Glenn Neilsen, Brand Marketing Dir., 937-644-7623, glenn.neilson@scotts.com
Seltzer Licensing Group, Stuart Seltzer,  Pres., 212-244-5548, stu@seltzerlicensing.com

Stanley Black and Decker, Todd Snellenburg, VP Sales, 443-927-5483, todd.snellenburg@sbdinc.com

Westinghouse, Kathleen Katz, VP Marketing, 412-642-5980, kathleen.katz@cbs.com