When it comes to food and formula pricing, Babies 'R' Us is a born leader. But many supermarkets still hold the silver spoon in terms of variety.
A subsidiary of Toys 'R' Us, Paramus, N.J., Babies 'R' Us touts its discount prices and extensive offerings in dozens of categories, which include baby care, baby needs, monitors, safety items, strollers, high chairs, swings, exersaucers, hampers, bassinets, mattresses, rugs, bags, toys, clothes, changing tables, bedding and preschool merchandise.
And while diapers, baby food and formula are also given ample space -- and offer various large-count sizes -- the assortment isn't as impressive as some supermarkets'.
About 45,000 square feet, Babies 'R' Us units have been opening rapidly along the East Coast. The first debuted this spring in Westbury, on Long Island, N.Y., followed by another in Atlanta early last month and one in Eatontown, N.J., July 19. Rick Markee, company president, declined to comment on additional openings or other questions about the company.
Jonathan Ziegler, an analyst at Salomon Bros., New York, said the superstore was created to compete against Baby Superstore, a popular category killer profiting from the niche market.
With the birth of other such stores possible in the future, supermarkets have some tough competition ahead. But they can fight back by creating baby destination stops, similar to what Albertson's and Food Lion, among others, have done, Ziegler said.
"Supermarkets over the last few years have lost business to pet superstores. And now there are baby superstores. In order to combat them, they have to create power departments or aisles," he said.
In the Westbury Babies 'R' Us store, formula and food are given about 24 feet at the very last aisle, SN found in a visit. Immediately facing it, on the perimeter wall, is a 24-foot section of diapers merchandised in a gravity pull display. During SN's visit, most customers were shopping the baby needs, clothes and toys sections, though several purchased merchandise from food and formula and diapers.
SN compared prices of Westbury's Babies 'R' Us with an A&P Superstore located a mile away. Babies 'R' Us came out ahead in pricing in the majority of segments analyzed, except private label. Mike Rourke, senior vice president of communications and corporate affairs at A&P, declined to comment.
In diapers, Pampers Premium, 20-count (size 4, unisex) and Pampers Unisex Stretch, 28-count (size 2, unisex) retailed for $6.99, 60 cents less than A&P. Along with in-line placement, Babies 'R' Us also featured diapers in window displays. These included 96-count sizes of Huggies and Babies 'R' Us brands, both of which retailed for $19.99. The 24-foot diaper section also featured large-count sizes, such as a 49-count of Huggies Supreme (Step 3, unisex), which sold for $12.99.
Price differences also were found in formula and food. The baby superstore sold a 16-ounce box of Gerber 1st Rice Cereal for $1.19, 20 cents less than A&P; Gerber Graduates pretzels, 6.5 ounces, for $1.09, 40 cents less than A&P, and a 32-ounce bottle of Pedialyte for $4.99, $1 less.
A 13-ounce container of Enfamil powder and a 10-ounce container of Similac concentrate retailed for $2.49, 50 cents less than A&P. Babies 'R' Us also featured a variety of multipacks, such as four 4-ounce Gerber Applesauce jars, priced at $1.69, and four 2.5-ounce jars of Gerber 1st Food assorted fruits, $1.59. Most jarred food was sold in four- and eight-packs; no individual sizes were available.
Yet A&P had a much larger selection of food, both in sizes and flavors. Both stores priced Gerber Graduates 6-ounce dinners the same: $1.19. While Babies 'R' Us sold only several different types, mainly Chicken Stew, A&P had a much larger selection. At the same time, Babies 'R' Us carried only Gerber, while A&P had a broad assortment of Beech-Nut and Gerber.
Also, A&P's private label, America's Choice, beat Babies 'R' Us prices in several different segments. For instance, an 80-count package of America's Choice wipes retailed for $2.59, 70 cents less than an 80-count Huggies tub at Babies 'R' Us.
Also, while a 20-ounce bottle of Johnson's Baby Shampoo retailed for $4.59 at A&P, $1.10 higher than Babies 'R' Us, a 20-ounce bottle of America's Choice shampoo was priced at $2.79.
