Retailers are weighing the attraction of national brands against the growing demand for value-priced merchandise in their nonfood baby care product sets.
While in many stores the baby care customer will not skimp on products for their child, others still face hard economic realities and buy the lower-priced items, retailers said. Among the trends mentioned by nonfood executives interviewed at a recent General Merchandise Distributors Council conference were a growing sophistication in the variety of baby cups, the adoption of more dedicated and well-signed sections for all baby care products whether food or nonfood, and in some cases, the consolidation of vendors.
But there was general agreement that attracting the baby care customer is a central merchandising strategy.
"The baby care consumer is a consumer that we want and that we have walking into our grocery stores," said Doug Schwab, corporate director, wholesale health and beauty care, Supervalu, Eden Prairie, Minn. "We need to make sure we have the right product to have the closure rate, so as to increase the market basket." Schwab is based in Chanhassen, Minn.
A key growth segment is upscale merchandise, he said -- for example, baby wipes in better-designed canisters that offer more convenience to the time-starved mother. Also, Schwab pointed out that buying products for babies is an emotional experience. "Therefore we want to make sure that it's a good-quality product that we are offering."
While most consumers will buy private label or another low-priced item and use it for themselves, it's the opposite when it comes to baby care, said Charles Yahn, vice president, Non-Foods Division, Associated Wholesalers, York, Pa. "The trend we see in baby care is, 'There's no exception for my baby. I've got to buy the national brand.' So I've got to carry that item and push it," he said.
Mothers -- especially new mothers -- want the best for their children, said Susan Spring, buyer, W. Lee Flowers & Co., Lake City, S.C. So when shopping, that translates to, "I'm going to get the branded product for the baby," she said.
As the children of baby boomers start to have their own children, this is resulting in "echo boom," said Jim Wisner, president, Wisner Retail Marketing, Libertyville, Ill. "That is going to be a very large market in coming years." And because there tends to be fewer children per household, "there is more investment per child in many cases," he said.
"If you look at any of the people involved with these products right now, they all have big smiles on their faces," Wisner commented.
"We're seeing nice advances in feeding products -- new fashion goods, new ergonomics," said Tony Pooler, director of HBC/GM, Save Mart Supermarkets, Modesto, Calif. "But segments like the baby washes and other chemical products seem to have stagnated." Private label in diapers and wipes are a dynamic growth area, he added.
For some customers, even lower-priced items are a matter of necessity. "That's the one category that we have seen private-label sales go down since we've put in a dollar program," said Darlene Usleton, senior non-foods buyer, Affiliated Foods, Amarillo, Texas. "A new mother is either going to go with the name brands or with the cheapest she can find. It's one or the other. I don't think there's any middle ground on that."
"There is a growing segment of the consumer base that doesn't necessarily see the traditional brands as being worth the retail price vs. the alternatives in value merchandise, be it no-spill cups, spoons, nipples or baby bottles," said Larry Ishii, general manager, GM/HBC, Unified Western Grocers, Commerce, Calif.
The challenge, he said, is in balancing the value products with the brands. "We want to keep a strong position in the traditional national brands because that is where most of the sales are, that is where the manufacturer support is, and that is where our long-term profitability is," Ishii said.
A key to success in baby care is merchandising all related products in one aisle, noted Jay Goble, vice president of merchandising, Valu Merchandisers Co., Kansas City, Kan. "If you don't balance the subtlety of the HBC and GM piece with the tonnage of diapers and formula, you will not have a victory strategy. But too often there's a disconnect over who governs that aisle," he said.
Part of that success is in co-locating HBC products that can be used for adults or children, such as cough-and-cold remedies, in the baby aisle, Wisner said. "That makes it easier for the shopper," he said.
Narrowing the Mix
When it comes to nonfood baby care products, at least one retailer has found that it's not necessary to carry all the stockkeeping units from all the national brands.
K-VA-T Food Stores, Abingdon, Va., recently gave Gerber Products Co., Parsippany, N.J., an exclusive in its baby care aisles, "and sales are up in the double digits," said David Lowe, director of GM/HBC. "We are finding that the customer is very happy to walk up and see a national brand they are used to, and for us, it is Gerber."
It was a hard decision for K-VA-T to commit to such an exclusive program, Lowe said. "You have to find a partner that will give you the marketing support and understand that your commitment is to them, and that you are going to hold them accountable. But we have had great increases. So as far as I'm concerned, it was the best move we could have made for our company," he said.
Bashas' Markets, Chandler, Ariz., has downsized its baby category, said Sue Vodika, HBC buyer and category manager. While the food products, diapers and wipes continue to sell, the customers for other baby care products have moved to the specialty stores. "We have the leading categories -- the lotions and baby washes do excellent," she said.
As to other segments, Playtex Products, Westport, Conn., handles baby cups, and Gerber takes care of the feeding products, with some additional items from Evenflo Co., Piqua, Ohio. "They all have their little niches, and that's the way Bashas' goes to market."
