Hamilton Beach 2013 Annual Report Download - page 18

line for chains and distributors serving the global food
service and hospitality markets. HBB is enhancing
its global commercial product line, particularly with
new innovative blending and mixing platforms, and
strengthening its food service and hospitality offerings
in order to achieve further market penetration in this
segment. Over the near term, the company anticipates
continuing to build distribution capabilities and
increase the number of sales representatives in the
international food service market, where products and
services will be directed at global food service chains.
HBB is optimistic that it will be able to build
on the momentum achieved in 2013 by focusing on
these five strategic initiatives as a solid set of strategies
for profitable growth. The company believes it is well-
positioned to continue its leadership position in the
small kitchen appliances industry and to move toward
achieving its near-term financial objective of 8 percent
operating profit margin and its long-term financial
objective of a minimum 10 percent operating profit
margin in the years ahead.
KITCHEN COLLECTION
2013 Results
Despite a number of improvements to its Kitchen
Collection® and Le Gourmet Chef® store formats
over the past few years, Kitchen Collection continues
to struggle with fewer customer visits and, as a conse-
quence, declining sales and operating results. During
2013, Kitchen Collection closed a significant number
of stores in both formats early in the year and opened
a smaller number of Kitchen Collection® stores toward
the end of the year. Unfortunately, these adjustments
did not translate into overall financial improvement.
The Kitchen Collection® stores, which sell a
wide variety of basic kitchen items, generated an
increased average sales transaction value. However, the
number of customer visits and transactions declined.
The Le Gourmet Chef® stores, which sell higher-end
goods focusing on cooking and entertaining themes,
continued to struggle in 2013. A slightly higher average
sales transaction value did not make up for fewer
transactions due to reduced customer visits.
At Left: Hamilton Beach Brands’ newest
Commercial product, the Blend-in-Cup
commercial blender.
At Right: Hamilton Beach®Single-Serve
FlexBrew®Coffee Maker, Hamilton Beach®
Searing Grill, Proctor Silex®1.5-quart
Slow Cooker, Hamilton Beach®Stainless
Steel Electric Kettle.
Below: Hamilton Beach is focused on
growing its international business.