P&G to try Tide dry cleaning stores

Mon Aug 25, 2008 4:02 PM EDT

Procter & Gamble Co. plans to try its hand at the dry cleaning business under the Tide detergent brand.

Gary Coombe, vice president for new business development, said in an interview Monday that three Kansas City-area Tide Dry Cleaners are set to open in September.

"This is very much a test," he said, but added that P&G sees opportunities in the estimated $9 billion a year industry because of its laundry and fabric care experience after more than six decades of Tide, and after research into consumers' feelings about dry cleaning.

"We're going to bring that expertise to bear," Coombe said. "We think our service can be a step above what consumers enjoy today in the industry."

P&G is getting into dry cleaning even as it makes a major product launch for a Tide and Downy "Total Care" line it says will keep clothes looking new longer and reduce dry-cleaning needs. P&G said its research indicated that a majority of dry cleaning customers aren't satisfied with their service.

"We also know the dry cleaning industry is very large and it's here to stay, and we believe we can offer something for unmet needs," Coombe said.

P&G is building a new Tide store and will operate two other dry cleaning facilities that were already open in partnerships.

Coombe said Kansas City provides good demographics for a consumer test market, and P&G is partnering with Kansas City-based GreenEarth Cleaning LLC, which says its dry cleaning solvent is environmentally safer than traditional methods.

He said the Tide stores will have onsite tailoring, drive-through service, and use proprietary technology to enhance garment color, among other features.

Steve Carico, president of Cincinnati-based Widmer's, which has been in the dry cleaning business since 1910, recalled that P&G never had major success with Dryel, launched nearly a decade ago as an at-home dry cleaning product.

"I"m not too worried," Carico said. "They've got too much stuff on their plate and I don't think they're going to get that involved in dry cleaning."

P&G has also been trying out Mr. Clean-branded car washes, starting three businesses in its home area in less than two years. It's offering Mr. Clean Car Wash franchises in Ohio and Kentucky.