Convenience Loses
Aug 17, 2009 12:00 PM
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%.
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.
|
| 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.
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© 2012 Penton Media Inc.
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