Home Depot Inc., the world's largest home improvement retailer, and Sears, Roebuck and Co., the No. 4 U.S. retailer, are among the stores cashing in from the drought fallout, whose worst effects are gripping the United States's Northeast.

The region, which includes New York State, is among the major parts of the United States which environmental conservation and weather authorities have said are threatened by a severe drought this year as their water reservoirs stay low.

"We are in the middle of a pretty serious drought," Jim Gagne of Planalytics, which tracks weather trends and how they affect consumers said. He cited a move by some restaurants in some parts of the Northeast not to offer water unless are asked by patrons.

SUMMER SCORCHER

The problem could be compounded by a continuation of the warm weather of the past winter. Last month the National Oceanic and Atmospheric Administration (NOAA) declared the months of November through January as the warmest months on U.S. record books, a declaration which is also fanning worries that the upcoming summer season may be a scorcher.

The NOAA said January 2002 was the balmiest in the 123 years temperatures for the month have been recorded globally.

The states of New York and New Jersey - both in the Northeast - have urged the public to conserve water by such means as fixing leaking pipes, not watering lawns and only taking cars to commercials washers.

But now the public is also looking inside homes for ways to conserve water, a step which is helping retailers and manufacturers sell more big-ticket, water-saving appliances, a staple item for larger merchandisers.

Sears, based in Hoffman Estates, Ill., says there is strong demand for its Kenmore Elite line of laundry washers. The machines - which according to the company's website cost almost $1,500 - use 15.8 gallons of water versus 42.4 gallons used by their older, conventional peers.

But besides conserving water, the washers - made exclusively for Sears by U.S. No. 1 appliance maker Whirlpool Corp. - are also credited with helping customers save on their electricity bills.

"This product is selling very well. We are actually having difficulty keeping it in stock," said Larry Costello, a Sears spokesman said.

He said to date high-efficiency appliances, which include those that help conserve water, represent about 17 percent of the company's sales volume compared with about 10 percent a year-ago. "These are very popular both in the Northeast and on the West coast," Costello added.

Appliance and home plumbing fixture makers have long been required by federal regulations to make products that help save water and electricity, but mounting concerns about the drought are leading shoppers to seriously consider replacing older gadgets at home.

In New Jersey, for example, authorities can fine those who breach drought restrictions on water use up to $5,000 per day, per offense, according to a state's environmental protection spokeswoman.

DROUGHT BECOMING BIG BOOST

Steven Duthie, a Whirlpool spokesman, said some of the company's water and energy efficient washers have indeed become a big business boost.

He said the company's high-end models are seeing higher sales. In the category of washers priced at $600 and above sales, are up significantly, Duthie added.

Sales of what he called "value brands," priced at $349 and below, are also up. Sales in the middle category, washers priced from $350 to $599 are, however, down.

"That would indicate to us that those folks in the middle area are actually buying up to premium products," Duthie said.