Closets Ultimate
Makeovers Set Trend Across North America

BY FRANCOISE O’NEILL

Even behind closed doors, closets are much more than storage facilities. Designing and furnishing these intimate spaces is a booming industry estimated at $2.6 billion a year. The Freedonia Group, an industrial market research firm, predicts that sales of home organization-related products will increase by more than 5 percent a year to $7.6 billion in 2009. As a study analyst for Freedonia, Jennifer Mapes says the group forecasts that products for closets and garages will achieve the strongest average annual growth through 2009. Advances will be driven by a growing amount of space dedicated to closets, particularly in the master suites. This impacts resale value for new and renovated homes across the country.

Mark Remmers, marketing manager for ClosetMaid’s Building Division, oversees ClosetMaid’s MasterSuite Retrofit dealer network accounting for the company, which continues to receive increasing business on the higher end, “ultimate closets.” According to Remmers, “In the last year alone, the combination of home renovations and new construction installations have together boosted this division’s average sale up almost 30 percent to nearly $1,500. All over the U.S. and Canada, our Retrofit dealer network is escalating right along with it. We’re at roughly 220 affiliates and project growth by 25 percent in this coming year alone.”

ClosetMaid sees the serious demand in the United States and Canada in this “do-it-for-me” segment, moving toward more spacious, well-organized and beautiful walk-in or reach-in closets where top-end consumers will spend as much as $9,000 — especially in custom home construction. Remmers also finds that the sales of many more MasterSuite closet colors, such as “warm cognac,” or components such as free-standing islands, cabinet door details, multi-purpose drawers, and always — shoe storage —become key drivers as well.

Neil Balter elaborates on this MasterSuite phenomenon. Balter is known industry-wide for his foray into development of the custom closet business establishing California Closets Inc. in 1978, selling it to Williams-Sonoma in 1991 and then, one year later, founding his own Organizers Direct. Based in Scottsdale, Ariz., Balter’s business does consulting work with the closet industry, but he has been exclusive consultant to ClosetMaid for nine years, helping with development of its higher-end MasterSuite line with a specific emphasis on its dealer program.

“First, we see a big trend for closets in new homes,” says Balter. “Storage and closet space has increased dramatically. The original 6-foot-by-7-foot closet is now nearly double its size, at 12-by-14. Second, the target customers include couples where the woman heavily influences decisions. I see our consumers primarily as smart females, affluent, usually older, more discerning, and always in search of harmony in their homes. These are women who demand more choice. We offer a range of colors so they can select whether to install MasterSuite warm cognac, white, or the new antique white. We design an array of component choices. This gives them reasons to consider adding more than rods and shelves. They love the hamper, the jewelry drawer inserts, sliding tie racks, belt holders, and pullout valet, all of our creative additions. They’re almost as important to her as our shoe storage, which, by the way, is the No. 1 request.”

Retrofitting

is also the operative word for California Closets. “The bulk of California Closets business is in renovations,” states Lisa Lennard, program development manager for California Closets Organizational Learning and Development Division. Lennard attributes the increase in part to the fact that more and more people tend to spend their leisure time pursuing family driven activities or hobbies. This translates in having several different types of wardrobes and equipment to store. Newer homes are being designed to provide appropriate spaces that can handle or adapt to this. Closets are getting larger.

In Lennard’s experience, “When it comes to retrofitting many people begin with the new master bedroom closet, reach-ins are next. Our typical customer is between 30 and 45 years old and likely to be a woman. However, we are seeing a lot of baby boomers too.”

California Closets’ marketing approach emphasizes the importance of engaging customers in the design and decision-making process. “We ask questions about their lifestyles, daily routine, and what items they use most. This knowledge helps us to customize each design to fit their unique storage needs with accessories such as belt racks, tie racks, valet poles, jewelry drawers, and drawer dividers that take the closet to the next level of usefulness,” Lennard explains.

California Closets’ product distribution is streamlined through a franchise organization, unlike ClosetMaid, and comprises approximately 100 in the United States as well as several in Canada, Mexico, Europe and South America. Each territory is individually owned and operated by a franchisee making it possible to understand regional and seasonal storage needs.

“Upgrading closet storage space is not only a beneficial home improvement but also a smart investment proven to have impact on a home real estate value. We feel a California Closet, like granite countertops and stainless steel appliances in kitchens, are a touch that help to sell homes. Our goal is to have a long-term relationship with each and every customer and to make sure that we understand their expectations,” Lennard concludes.

ClosetMaid’s success results from a more mainstream appeal where the market has grown 20 percent to 30 percent over the last 10 years. “We keep thinking it will level, but it doesn’t,” says Balter. “The higher-end market is going very high-end. Custom home closet sales averages are skyrocketing. Elements like added wood grains, crown moldings, chrome baskets now push bottom lines from $3,000 to $8,000 as the new average. Plus, for those wanting first-time custom closets, we have the most competitive line out there and experienced, talented installers who we train carefully — that’s the cutting edge.”

According to Closetmaid retrofit dealer Roger Courtois (Closets By Courtois, Sarasota, Fla.), “I’ve been in this business for years. I know great construction. I also know what my customers want these days and MasterSuite closets are the smart solution. Real estate values here in Florida escalate when bedroom closets are beautifully constructed and organization is a breeze. A lot of my customers are empty nesters looking to economize on space but not special touches like great closets; or they’re more upwardly mobile couples who know MasterSuite closets increase the value in their homes. I see realtors head clients directly for the bedroom when they hear the closets are scaled up and gorgeous, like these. I’m doing several for that very reason right now.”

Courtois’ view represents many in the industry who believe customers are seeking harmony and greater organization in their lifestyles and in their homes. As Courtois aptly states, “Less clutter, less chaos. It just makes sense to start in your private bedroom, especially in that inner sanctum — your closet.”

Francoise O’Neill, a freelance writer based in Sarasota, Fla., is a frequent contributor to a number of national publications including

The New York Times, Coastal Living, Creative Home, Window and Wall Ideas, Quick and Easy Decorating and Mary Engelbreits’s Home Companion.