Progressive Grocer

DEC 2016

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76 | Progressive Grocer | Ahead of What's Next | December 2016 Nonfoods Health, Beauty & Wellness S upermarkets are taking a pared- down approach to facial, hand and body moisturizers, offering a narrow selection of best-selling items and targeting fill-in shoppers. "Supermarkets have to make it easy for consumers to shop this category, or they are going to purchase online," warns Candace Cortlett, president of New York-based WSL Strategic Retail. If consumers are browsing, they're doing so online or in channels with an extensive selection. One-fourth of shoppers are buying facial skin care products online, according to Cortlett, and one-third are pre-shopping consumer package goods online before purchasing in stores. at doesn't mean there isn't opportunity for the grocery channel, however. "Supermarkets don't need to focus on the shopping experience in this catego- ry," notes Cortlett. "eir opportunity is in replen- ishment trips, and they can win those purchases by making sure the best-selling facial moisturizers are represented and by organizing them in a way that makes it easy for consumers to find. Research shows consumers will pay more for products they really want or to purchase in a convenient location." Only the Best Sellers A buyer at one Midwestern supermarket chain says his store layouts are tight on space and don't allow for special fixtures or lighting, so he's narrowed the focus to best-selling products. "Space is my enemy, so I'm concentrating on best-selling fill-ins," he explains. According to the buyer, Neutrogena and Olay best-sellers are driving his company's busi- ness in facial moisturizers, while the hand and body business is dominated by Gold Bond, Eucerin and Jergens. "e category is mostly basics," he says. "I can't remember the last time I sat through a spa- positioned presentation." Safeway, a division of Albertsons Cos., is stick- ing to the best-seller formula by keeping its facial Best Face Forward Grocers must narrow assortments, offer value and merchandise creatively to win in this category. By Barbara Sax moisturizer section trimmed to 3 feet. Best-selling brands such as Olay Regenerist and Olay Total Effects share space with L'Oreal's Revitalist and Neutrogena's Hydro Boost. e Pleasanton, Calif.- based retailer aggressively promotes the category with on-shelf signage signaling everyday pricing on best-selling products. Safeway and Englewood Cliffs. N.J.-based Unilever recently ran a promotion offering $5 toward a gift card with the purchase of $15 worth of participating Unilever brands. Wendy Hale, of Plainwell, Mich.-based Hard- ing's Friendly Markets, notes that selection varies by store size. "In our larger stores, Olay and Neutrogena are the best sellers, but our smaller stores may stick with value brands like St. Ives and Ponds," she says. According to Hale, Gold Bond specialty moistur- izers are performing well at the stores, particularly the brand's Diabetics' Dry Skin Relief and Ultimate Eczema Relief Skin Protectant Cream, which were introduced over the past few years by Sanofi's Chat- tanooga, Tenn.-based Chattem division as part of a line of therapeutic products. e chain promotes regularly in-store and in circulars. Sorting Out the Segments While some higher-priced facial moisturizers are still performing well, anti-aging facial moisturizers are in a slump overall, with multioutlet dollar sales down 4 percent, according to IRI data for the 52-week period ending Oct. 2. e general facial moisturizer category is faring much better, with dollar sales in that segment up 6 percent for the same period. Neutrogena's Hydro Boost, introduced in 2015, had a strong year, and a few products from the Aveeno Active Naturals, Cetaphil and CeraVe brands showed double-digit increases, according to Chicago-based IRI. e Olay brand has lost market share to Johnson & Johnson's Neutrogena Hydro Boost and Aveeno Active Naturals. Supermarkets have to make it easy for consumers to shop this category, or they are going to purchase online." —Candace Cortlett, WSL Strategic Retail Continued on page 80

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