Retailers are seeing stronger demand for stronger over-the-counter anti-itch remedies.
According to Towne-Oller & Associates, New York, N.Y., a subsidiary of Information Resources Inc., Chicago, sales of 1% hydrocortisone creams were up 13% for the 12 months ended Nov. 30, 1993, which was the last time Towne-Oller separately broke out and tracked the 1% segment from the category.
Growth of the 1% hydrocortisone cream has prompted some retailers to discontinue the 0.5% hydrocortisone cream, anticipating that the
1% would cannibalize sales of the weaker-strength product. Others, however, continue to carry both strengths in the belief that this will draw more customers and achieve incremental sales. "We have been noticing an appreciable increase on 1% hydrocortisone," said Dan Van Zant, general merchandise supervisor at Ray's Sentry Markets, Brookings, Ore., a 28-unit retailer. "We feel the consumer is looking for something stronger than what has been available. We will continue to offer 0.5% hydrocortisone as another choice. Perhaps this way we will pick up some additional sales from customers who wanted something stronger and would go to the drug store," he said. Carol Bouslog, assistant buyer at Strack & Van Til Supermarkets, an eight-store independent headquartered in Highland, Ind., said 1% hydrocortisone is driving sales of the anti-itch category. "We still carry 0.5% hydrocortisone, but we may discontinue it if sales continue to grow on the 1% and it looks like there is not a need. However, I would like to keep at least one [stockkeeping unit of] 0.5% for those people who want it, so the customer can make the decision," she said. The health and beauty care director of a large East Coast chain said sales of 1% hydrocortisone have been on an upward trend for the past year, and that is expected to continue. The East Coast chain carries both the 1% and 0.5% strength of hydrocortisone cream. "We feel there is a need for both, but we have noticed the 0.5% seems to be declining in volume. By next year it will probably be gone," the HBC director said. At Raley's, West Sacramento, Calif., 1% hydrocortisone cream has cut into sales of the 0.5% strength product, said Dan Black, buyer-merchandiser. "It is a good category. There are probably eight to 10 companies that have [the 1%] now, and it continues to grow," he said. Raley's has had to expand space "a little" for the category to accommodate the new items, he added. Sales of the 1% hydrocortisone cream are "good" at Byrd's Food Stores, Burlington, N.C., according to Randall King, nonfood buyer for the 43-store chain. "We haven't expanded [space for the] category. When we add something, we drop something," he said. Copps Corp., Stevens Point, Wis., discontinued the 0.5% hydrocortisone when it introduced the 1% strength because the company felt consumers would prefer the stronger product, according to Jane Jansch, HBC buyer. Copps supplies 17 corporate and 42 independent supermarkets. "If you were the consumer and you could buy the 1% for the same price or a few pennies more than the 0.5%, which would you choose?" she asked. "We felt the 1% would steal some product sales [from the 0.5%]. The gross profits are basically the same. The 1% is probably a little more expensive, so we probably will show higher dollar sales. We felt [with the 1%] we could sell the consumer up to the premium product without taking sales away," Jansch said. The hydrocortisone cream is carried in the first-aid section of the HBC department, retailers told SN. At Ray's Sentry Markets, the entire first-aid section has been remerchandised, with display space expanded by as much as 50%, Van Zant said. The stores are now using slanted shelves for the category to improve visibility. The shelves have a Plexiglas front and dividers to separate different items. "We are attempting to make it easier for the customer to find what she is looking for. We are creating a set that is easy to shop and merchandise and easy to service, so it cuts down on labor," Van Zant said. The remerchandising and expansion of the first-aid section is part of the chain's overall HBC expansion program, which should result in a 25% to 30% increase in display space for the total HBC department, he said. "Anti-itch is a strong section for us. What we have done is just position the product and attempt to price it competitively," Van Zant said. Black of Raley's agreed that 1% hydrocortisone will probably continue to grow. "The biggest time of the year for anti-itch is April, May and June. Usually several companies, including private label, will advertise during that period," he said. Initially, sales of the 1% hydrocortisone were assisted by aggressive manufacturer promotions, such as buy-one-get-one-free offers, said Jansch of Copps. The many bonus packs on the market have made it difficult to determine what everyday sales should be, she said. King of Byrd's pointed out that manufacturers have been supporting the 1% hydrocortisone with coupons. Bouslog of Strack & Van Til said brokers have been "very supportive" of the hydrocortisone category. "Our anti-itch section is probably 3 feet, two shelves. Right now, 1% hydrocortisone has about 30% of that space. In the future it may have more space. I'm sure there will be more brands," she said.
