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PHILADELPHIA SPIN CYCLE

PHILADELPHIA -- Heightened competition and heavy promotions are helping retailers here put a positive spin on laundry detergent sales.Compared to 49 other metropolitan areas, the Philadelphia market achieved the greatest fair share index for the 52 weeks ended June 15, 1996, measuring 130. This figure indicates that detergent sales here are 30% higher than what one would normally expect (Index = 100),

PHILADELPHIA -- Heightened competition and heavy promotions are helping retailers here put a positive spin on laundry detergent sales.

Compared to 49 other metropolitan areas, the Philadelphia market achieved the greatest fair share index for the 52 weeks ended June 15, 1996, measuring 130. This figure indicates that detergent sales here are 30% higher than what one would normally expect (Index = 100), given the size of the category in the country and the size of the supermarket sales in Philadelphia, according to ACNielsen, Schaumburg, Ill.

Part of that total may have resulted from a population increase, but it also stemmed from retailer strategies like comparative in-store advertising and active private-label promotion.

The fair share index is calculated by looking at the ratio of total detergent sales in the city to total category sales in the United States, and then dividing that result by the ratio of total grocery sales in the city to total grocery sales in the country. Specific sales for the year ended June 15, 1996, totalled $34.2 million for the territory that Nielsen defines as Philadelphia: the area extending from Baltimore to New York City.

The primary competitors here are Acme Markets, Malvern, Pa., operated by American Stores; Genuardi's Family Markets, Norristown, Pa.; Super Fresh Food Markets, Florence, N.J., a subsidiary of A&P, Montvale, N.J.; Pathmark Stores, Woodbridge, N.J., and Clemens Markets, Kulpsville, Pa. But Giant Food Stores, Carlisle, Pa., and ShopRite, part of the Wakefern Food Corp. cooperative, Elizabeth, N.J., also have a segment of the market.

Chains use location, price, variety and promotion to attract shoppers, SN discovered during store visits last month.

Of the chains SN contacted -- Acme, Super Fresh, Pathmark, Giant, Clemens and Genuardi's -- only Genuardi's agreed to comment.

Merchandising and space allocation among area supermarkets are similar. The average linear length is about 30 feet with liquid detergents occupying more space than powdered. Liquid detergent is merchandised on six shelves in 20 feet to 22 feet, while powdered takes up four shelves in 8-foot to 10-foot sections.

While most chains SN visited merchandise detergents on six shelves, Clemens merchandises the category in a 30-foot section on five shelves. In addition to merchandising it in the aisle with other cleansers and mops and brooms, the independent mixes in bug spray and charcoal.

It offers 20 stockkeeping units of powder detergent and 52 SKUs of liquid detergent.

Like some of the other retailers visited, Clemens merchandises stain removers, fabric softeners and bleaches adjacent to its detergent.

Acme has, by far, the most store locations, but Giant challenges its competitors on price. For instance, stores have shelf tags that encourage shoppers to compare Giant's prices with Acme's and Pathmark's.

During SN's visit, a Giant store displayed Fab liquid detergent on an endcap. A sign on the display compared Giant's price ($2.95) with Acme's ($3.99).

Giant also used shelf signs to alert consumers to its 5% discount on prepriced liquid laundry detergents. At least three other various colored shelf tags attracted attention to temporary price reductions, everyday low prices and bonus buys.

Other area retailers also use shelf tags, but not as heavily as Giant, SN found. Acme uses several shelf tags, but mostly to draw consumers to weekly sale items. One store featured a yellow and black sign that said shoppers could save 20 cents on Ultra Yes liquid detergent.

Additional signs draw attention to Acme's private-label refill products and other items. "Save more. Buy Acme brands," read the pink and red tags.

ShopRite emphasized its private label detergent/fabric softener with shelf talkers that read, "Now on sale. Buy a ShopRite Brand and Save Money." Its private-label lemon-scented line was highlighted as well. Laundry detergent is ready for private-label products, said Joe Cunnane, senior grocery buyer and merchandiser at Genuardi's.

Following the debut of a store brand bleach two months ago, Genuardi's plans to roll out a private-label laundry detergent program by the end of the year. A 50-ounce ultra product and a refill probably will be some of the first items to enter its stores.

"The ultra products continue to have a stronger foothold in the aisle," said Cunnane. Genuardi's also plans to implement a category management program in the section by the beginning of 1997.

Along with private label, other items that add to a store's variety are detergents with color-guard, a bleaching ingredient, and without phosphates.

Powdered detergents remain part of the mix, despite the move toward liquids over the last few years. At Genuardi's, liquids outsell powder five to one, Cunnane said. The store has 80 stockkeeping units of liquid and 40 of powdered, he added.

Advertising and promoting those products is just as crucial to maintaining variety. Each store SN visited had at least one brand of detergent on special, and most featured one in their weekly circular.

Only a few select stores in each chain merchandised laundry detergent on endcaps. Acme used them the most consistently, followed by Giant, ShopRite, Pathmark and Genuardi's. Super Fresh used floor shippers in the beginning of its shopping pattern to display detergent.

While promotions have focused attention on the category, Philadelphia's significant sales growth also may be a result of a population increase, and because retailers like Wal-Mart, Wegman's and Super G have moved into the area, said Cunnane.

"I have definitely seen an increase in promotional activity and marketing, but the suburbs are growing," he said.