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Frugal times stoke sales of freezers

Appliance industry welcomes boost in sales as consumers freeze bargains to save on groceries

- The Associated Press

Published: Fri, Aug. 29, 2008 12:30AM

Modified Fri, Aug. 29, 2008 05:19AM

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Shoppers are re-embracing the deep freezer -- once relegated to the dank corners of the basement -- filling it with bulk purchases of meats, fruits and vegetables as they combat rising food prices.

Across the country, consumers bought more than 1.1 million freezers during the first six months of the year -- up more than 7 percent from the same period last year, according to research firm NPD Group.

That rings up to nearly $400 million in freezer sales -- a staggering figure compared with the rest of the appliance sector, where industry data show shipments are down nearly 8 percent.

COOL PLACE FOR GROCERIES

Sales of freezers are up for the first six months of the year.

Units sold: 1,084,000 freezers sold from January through June, up 7.1 percent from 2007.

Dollar volume: Sales were $383 million from January through June, up 3.5 percent from a year earlier.

The trend is expected to continue at least through much of next year as penny-pinching shoppers buy in bulk to take advantage of deals or bundle shopping trips to conserve gas.

About half of all U.S. households have a chest or upright freezer, different from the refrigerator and freezer combo that is a kitchen stalwart, industry statistics show.

To accommodate the rest or cater to those who want to upgrade to new models, some appliance makers are redesigning their products.

This summer, Frigidaire's revamped upright freezers began hitting stores as the brand, owned by Swedish manufacturer Electrolux, added specially designed shelves, baskets and other features intended to stoke the appliances' growing popularity.

Models retail for $400 to $800, a bright spot in the otherwise slowing appliance market.

"Overall, these trends last a long period of time, because consumers adjust their buying habits, and they change their routine," said Marty O'Gorman, a vice president and general manager of the freezer division of Electrolux Major Appliances.

Elizabeth Lyng and her husband paid $150 in August for a small freezer chest for their kitchen. After her family switched from buying fresh fruits and vegetables to frozen items, the freezer became the holding area for bags of frozen blueberries and strawberries, along with meats and dinnertime leftovers.

"I wanted to be able to buy in bulk when things were on sale or at a pretty good price and have the room to save and freeze and store anything," said Lyng, 31, of Norcross, Ga. "We ... really had to have the extra space."

At Home Depot, unit sales of compact freezers are up in double-digit percentages over the past 12 months. "Freezers tend to be countercyclical, meaning that they generally do better when the economy is soft, because people go out less and buy groceries in bulk," spokeswoman Paula Drake said.

Executives at home improvement chain Lowe's said they noticed the increase in freezer sales this spring and figured it related to food prices.

They attribute some of the increase to a bumper crop for home gardeners whose plots were damaged by drought last summer.

"It made sense," chief executive Robert Niblock said.

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