Convenience Loses

Aug 17, 2009 12:00 PM


         Subscribe in NewsGator Online   Subscribe in Bloglines

Of the 15 traditional nonfood categories tracked by Information Resources Inc., Chicago, supermarkets generated just over $9.3 billion in sales. However, supermarkets were able to show dollar gains in just five categories: soap, up 3.7%, vitamins 7%, weight control 4.4%, batteries 2.4% and adult incontinence 3.9%.

Convenience Loses

Meanwhile, the drug store channel, which generated over $10.2 billion in sales, reported dollar declines in just three product categories: toothpaste, cleaning tools and light bulbs. Total food, drug and mass channels, excluding Wal-Mart Stores, which generated over $24 billion in sales, were down in five categories: toothpaste, shampoo, razor blades, cleaning tools and light bulbs. The trend is that drug stores and others continue to pick up share of nonfood from supermarkets.

Some of the ups and downs in category performance this year are a direct result of the recession's impact on purchase habits. Generally, when it comes to nonfood categories, supermarkets are positioned as a place of convenience rather than a destination stop. In times of economic stress, the destination stop that offers the best price will win out over convenience.

KEY CATEGORIES

DOLLAR SALES % CHANGE FROM LAST YEAR
Soap $990.7M 3.7
Internal Analgesics $941.1M -2.4
Vitamins $893.0M 7.0
Cold/Allergy/Sinus Tabs $759.7M -0.5
Toothpaste $711.8M -3.7
Gastrointestinal Tabs $632.3M -1.2
Shampoo $624.9M -5.8
Weight Control/Nutrition Liq/Pwd $609.9M 4.4
Batteries $595.6M 2.4
Deodorant $543.8M -2.1
Blades $517.0M -3.9
Skincare $509.8M -1.3
Cleaning Tools — Mops/Brooms $457.3M -2.5
Light Bulbs $313.7M -10.2
Adult Incontinence $234.1M 3.9


Soap

Sold in both nonfood and Center Store aisles, soap is the largest volume of the nonfood categories. The category saw a big sales boost with the H1N1 swine flu outbreak this year. Hand sanitizer sales zoomed 19%. Purell's website (Johnson & Johnson) featured a “Facts About Hand Sanitizers As Public Concerns Over the Swine Flu Increase” page, which touted Purell as it pertains to helping to prevent the spread of swine flu, proper hand washing and product availability. The page referenced the Centers for Disease Control and Prevention (CDC), which recommends hand washing and — when soap and water are not available — hand sanitizing to prevent the spread of germs. While category dollars rose in all three channels, units were flat to down, reflecting manufacturer price hikes as ingredient costs rose. Aside from the hygiene aspects, soap manufacturers have concentrated on other health and well-being benefits. Dove (Unilever) launched NutriumMoisture to preserve both skin proteins and lipids to retain moisture. Dial (Henkel) introduced an antioxidant body wash with cranberry and antioxidant pearls as a defense against dry skin and a yogurt apricot and almond formulation to condition skin. Dial added a pheromone-infused body wash for men. Olay (Procter & Gamble) takes a step further with age-defying microbeads and ribbons for cleansing and moisturizing, adding skews of botanicals and spa exfoliating seaweed extracts.

Want to use this article? Click here for options!
© 2012 Penton Media Inc.

Subscribe / Renew to Supermarket News

Supermarket News

The most reliable source of industry news and insight...in print and online.

View All


WH Refresh Blog

Bob Vosburgh Bob Vosburgh:

View all Quick Poll Archives


Most Viewed News

Read More News

SN Editorial Videos

Kroger, Whole Foods in Good Position

Analysts explain why some chains are better positioned than others, as weak consumer spending persists.

The Lempert Report

Marketing analysis, issues and trends from supermarket industry analyst Phil Lempert.

New Products Hits and Misses

Product reviews from supermarket industry analyst Phil Lempert.

SN Sponsored Videos

Pan-Oston Mobile Innovation Centers Tour

The Supermarket Guru shows the front-end technology you can experience during the tour.

View All

Articles by Market
Retail/Financial
Executive Changes
Grocery/Center Store/
Brands
Health & Wellness
In-Store Bakery/Deli/Meals
Logistics
Marketing
Meat/Seafood/Dairy
Nonfoods/Pharmacy/HBC
Produce/Floral
Specialty/Ethnic
Technology

Quick Poll

Key Issues & Topics
Food Safety/Recalls
Legislation/Regulations
Sustainability/Green
More Topics
Resources
Profiles & Rankings
SN Awards
SN Data
White Papers/Studies
Webinars
Trade Show Calendar
Subscribe to SN
Total Access Blog
WHRefresh Blog

Related Penton Sites:



Plan a food industry meeting with MeetingsNet.

Back to Top

Subscribe to SN

Subscribe to SN Newsletter

In-Depth News Stories

Latest SN Cover

Subscriptions

Get access to print and / or in-depth online conent.

Register Here

newsletter image

SN Free Daily Update

The food trade's leading daily news service.

Register Here

A&P Seeks Funds to Buy Time

As losses mount, sales slide and debt maturities approach, A&P's new leadership team is racing to secure additional funding.

Founders Retain Control in Fresh Market IPO

The long-anticipated initial public stock offering for The Fresh Market will be smaller than anticipated and will leave the current ownership...

Safeway Boosts RecycleBank Participation in L.A.

Shoppers here are adopting the motto now that Safeway is on board with a pilot that rewards households with grocery discounts for recycling curbside.

Subscribe to SN's Content Today!

Subscribe to SN's Content Today!

Corporate Finance

Read in-depth coverage of quarterly reports.

Marketing Trends

New promotions, new pricing, new products.

Subscribe to SN's Content