Supermarket hair-coloring sales have a decidedly rosy tint these days.
While total retail sales of hair-coloring kits grew 5.6% over the 12 months ended July 20, food-store sales jumped 12.2%, outpacing the growth at mass merchants and drug stores, according to data supplied by Information Resources Inc., Chicago.
Despite the double-digit growth, however, supermarkets' market share is still only about 19%, compared with 45% for drug stores and about 36% for mass merchandisers. But with more and more women, and now men, coloring their hair, and consumers placing convenience at the top of their shopping lists, supermarket sales of hair coloring are expected to continue to rise.
A consumer shopping behavior study released this year by the American Greetings Research Council, Cleveland, in conjunction with the Food Marketing Institute, Washington, evaluated the potential of hair coloring in supermarkets. It concluded hair coloring "could be a sleeping giant." This year's success already reflects an awakening of the category in some chains.
"Just over a year ago we were talking about taking the section out, but in the past year we have seen dramatic changes in the category," said a buyer for a leading Southwestern chain, who asked not to be named. "Sales are going through the roof. It has surprised me."
The chain is now considering expanding the section. "The 4 feet we give it are just not enough to carry the stockkeeping units we want," said the buyer.
Last year, Victory Super Markets, Leominster, Mass., placed 8- foot sections in two of its stores where it was expanding its health and beauty care departments. It had not carried hair coloring before, according to Steven DiGeronimo, grocery supervisor and HBC buyer. Sales, he said, "are doing well.
"It is a growing category," said DiGeronimo. Space permitting, he would consider adding it to the chain's 14 other stores.
It's not only the convenience factor that is drawing more shoppers to supermarkets, but also a narrowing of the pricing gap in the category. More attention from manufacturers has also played a role, according to several retailers surveyed by SN.
Mike Peterson, direct-store delivery and general merchandise buyer for Holiday Quality Foods, Cottonwood, Calif., said the chain now keeps its prices "competitive with the other major stores."
In the past, all items received a standard markup, but now the company is willing to sacrifice some profit margin "to keep prices in line," said Peterson.
Holiday has recently increased the hair-coloring sections in half of its 30 stores by about 10%, said Peterson. "The category," he commented, "is doing well."
"At one time supermarkets were 'way out of line' in hair-color pricing," agreed the buyer for the Southwestern chain. "And now we are competitive and that makes a big difference."
Suppliers have been helping in that area, said the buyer. "Instead of acting like we [supermarkets] are not existing, they are starting to see that we have the right SKUs and the right pricing."
Meanwhile, for retailers, the issue of stocking the right items at the right price is only going to intensify this fall, as Revlon rolls out its new 24-item ColorStay hair-color line, a crossover from its successful ColorStay cosmetics franchise.
Additionally, L'Oreal is extending its Preference line with three new red shades, called Les Rouges Romantiques. It is also adding three new blonde shades and one golden brown shade to its Belle Color line.
Several supermarket chains, including Pathmark Stores, Woodbridge, N.J.; Wakefern Food Corp., Elizabeth, N.J.; and H.E. Butt Grocery Co., San Antonio, have already signed on the new Revlon line, which was announced earlier this year, according to the company. The line, which did not undergo test marketing, enters a category currently dominated by two players -- L'Oreal and Clairol.
Vince Colonna, Revlon's vice president of sales for beauty care, said ColorStay has already achieved broad-based distribution across the country. "We are exceeding our expectations on selling in all classes of trade. Food is particularly strong," said Colonna. A $40 million advertising campaign broke earlier this month.
According to a study by L'Oreal, currently 50% of all women color their hair -- 33% at home and 17% in the salon. L'Oreal predicts that number will grow to 59% by the year 2000.
"The growth of the hair-color market can be attributed to the increase in baby boomers desiring to cover their first signs of gray as well as the acceptance of hair color as a fashion accessory by younger women," said Carol J. Hamilton, senior vice president of marketing for L'Oreal.
Recently Clairol has been promoting hair-color sales by offering a "new user kit" that explores the different hair-coloring options now available and also includes money-saving coupons, according to a company official.
A Midwestern retailer, who asked not to be identified, also said his company's sales had grown this past year, due to increased space and increased advertising for the section.
"We have experienced quite a bit of growth there," said the buyer. "What we attribute it to is just expansion of the department and advertising." The sections have been expanded from 4 to 8 feet and advertising has been increased by both the manufacturer and the chain.
The buyer also noted growth in men's hair-coloring products, although "it is still a pretty small piece of the business."
At Hardings Friendly Markets, Plainwell, Mich., hair coloring is a "stable part of the mix" but hasn't received any special attention lately, although it is advertised from time to time, according to Dave Lynam, general merchandise buyer.
Lynam said he hasn't been presented with the new Revlon line yet, but would probably take it on. However, "it would be a store-by-store decision."
Gary Pollard, key account manager for Piggly Wiggly Dixieland, Geneva, Ala., said the category has grown, but just like anything else, "the more space you give the department, the more sales you will have.
"Go into a mass merchandiser or a drug store and they have a lot of space devoted to hair color, and in supermarkets, unless you are a large store, you just don't have that," said Pollard.
Pollard suggests that, to maintain a good department, at least a 4-foot section, "up and down," should be dedicated. The 90 stores supplied by Dixieland currently maintain departments of 4 to 8 feet, of only one or two shelves. But there are no plans to expand right now. "We just don't have the room," he said.
Two years ago, Coburn's, St. Cloud, Minn., doubled its departments from 6 to 12 feet. "Expanding the section has been very beneficial for us," said Karen Swanda, HBC manager. "Sales are really good."
She attributes some of the sales growth to the introduction of nonpermanent and natural ingredient-based products. "Because a lot of hair coloring now is not permanent, I think more people are willing to try it. You can try a color, it washes out, and you can try another. You don't have to grow your hair out with these."
Coburn's frequently promotes the section with dollar-off coupons, said Swanda. "It will be on a certain brand or a line."
So far Swanda has no plans to take on the new Revlon line. "People seem to be pretty loyal to a brand of hair coloring. Once they find a brand they like, they will stick with it. That is with women. With kids, they will try anything."
But she could be swayed depending on Revlon's advertising campaign and the product's pricing. "If people come in and ask about it, and if coupons are dropped in local papers, that makes a big difference," said Swanda.
The Southwestern retailer also said the company had no immediate plans to take on ColorStay. "Until we can increase space enough to cover the two companies we have, we won't be taking on Revlon. That is, unless something major changes in the category or if Revlon products really take off," said the buyer. "Revlon is not a brand we've ever carried in makeup, and L'Oreal and Clairol both do a great job for us."
Meanwhile, Victory Markets does expect to add the new Revlon line at some point. "I'm sure we will. Revlon is such a powerful player," said DiGeronimo.
Enthused by the success of the two new departments, DiGeronimo said he believes that with the right product mix and presentation, supermarkets can compete effectively with mass merchandisers and drug stores for more hair-color sales.
"The more visibility there is for a category, the more willing they [consumers] are to buy it there," said DiGeronimo. "And if it is priced competitively, 'why not buy it here?' "
