Supermarkets are still challenged about how to resuscitate sales in the primary general merchandise and health and beauty care categories. Departments that are not tracked by Information Resources Inc., Chicago — like pharmacy, fuel and gift cards — continue to show strength. They have become some of the biggest and fastest-growing powerhouse parts of the store.
In terms of percentage growth for traditional scan-data categories, vitamins are showing increases, as are mouthwash and sun care products, but staples like internal analgesics, toothpaste, shampoo and batteries are flat at best, and mostly down, according to this year's review of IRI numbers. This has been true for a number of years, but the trend seems more pronounced in the economic downturn, as retailers like Wal-Mart report healthy numbers.
There are some categories like fireplace-related products, especially firelogs and firewood, where supermarkets have over 90% of the market, but these are few and far between. What will it take to take better advantage of these relatively high-margin sections? Sharper pricing? Better merchandising? Improved selections? Convenience-oriented marketing? The answer for many chains, as usual, is all of the above for those who want to reclaim these sales.
Internal Analgesics
While internal analgesics are experiencing anemic sales trends in the food channel, with dollars slipping less than a percentage point and units down 2%, the category shows 2% growth overall at $2.4 billion. Private label, representing nearly 20% of sales in the food channel, and approaching 30% in drug stores, is a factor, especially during poor economic times. This year's sluggish sales at supermarkets may be economic related as consumers seek lower-priced pain relief at discount merchandisers. The number of branded products keeps growing due to a proliferation of targeted remedies — Excedrin introduced its back and body formulation last year — and various strengths, combinations and delivery modes. Consumers may be overwhelmed by the pain relief choices on the market. Dosage warnings of harmful side effects on the intestines, kidney and liver also may limit usage. Offsetting harmful warnings are reports of the beneficial therapeutic effects on the heart and high blood pressure. While tablets represent the bulk of the category, liquids show a slight uptick in sales. The category is poised for future growth with the aches and pains of an aging population.
| 52 WEEKS ENDING JUNE 15, 2008 | DOLLAR SALES | % CHANGE FROM LAST YEAR |
| Supermarkets | $961.7M | -0.1 |
| Drug | $1.2B | 4.3 |
| F/D/MX | $2.4B | 2.3 |
| SUBCATEGORIES | SUPERMARKET SALES 52 WEEKS ENDING JUNE 15, 2008 | |
| Feminine Pain Relievers | $21.9M | -2.7 |
| Internal Analgesic Liquids | $97.5M | 0.3 |
| Internal Analgesic Tablets | $842.4M | -0.04 |
| CALENDAR YEAR | 2005 | 2006 | 2007 | |||
| DOLLAR SALES | % CHANGE | DOLLAR SALES | % CHANGE | DOLLAR SALES | % CHANGE | |
| Supermarkets | $949.1M | -1.3 | $955.7M | 0.7 | $960.2M | 0.5 |
| Drug | $1.046B | 2.9 | $1.113B | 6.4 | $1.118 | 6.5 |
| F/D/MX | $2.212B | 1.0 | $2.301B | 4.0 | $2.387B | 3.7 |
Toothpaste
Supermarkets' toothpaste sales slipped slightly while drug and mass channels picked up volume. Although tooth bleaching/whitening products represent just 9% of supermarket sales, the subcategory was up a healthy 11.8%. More convenient and enhanced performance-based products are growing the beauty-related subsegment. New on the market are Crest Healthy Radiance Toothpaste System, a daily paste and weekly strip system; Crest Whitestrips Daily Whitening Plus Tartar Protection, Arm & Hammer Whitening Booster to be used with its Age-Defying Toothpaste and Belgium-based Remedent's iWhite teeth whitening system initially available at CVS stores. Such innovations will continue to grow the mature category. In recent years the oral care category has come to encompass a regimen of premium products used for personal care and to maintain health. Research indicates good oral hygiene can prevent certain medical conditions such as aspiration pneumonia, gum disease and heart disease.
| CALENDAR YEAR | 2005 | 2006 | 2007 | |||
| DOLLAR SALES | % CHANGE | DOLLAR SALES | % CHANGE | DOLLAR SALES | % CHANGE | |
| Supermarkets | $750.0M | -5.1 | $737.7M | -1.6 | $743.4M | 0.8 |
| Drug | $418.7M | -2.3 | $412.7M | -1.4 | $447.1M | 8.3 |
| F/D/MX | $1.456B | -3.6 | $1.444B | -0.8 | $1.503B | 4.1 |
| SUBCATEGORIES | SUPERMARKET SALES 52 WEEKS ENDING JUNE 15, 2008 | |
| Tooth Bleaching/Whitening Powder | $68.0M | 11.8 |
| Toothpaste | $669.4M | -1.6 |
| 52 WEEKS ENDING JUNE 15, 2008 | DOLLAR SALES | % CHANGE FROM LAST YEAR |
| Supermarkets | $737.5M | -0.5 |
| Drug | $449.7M | 5.4 |
| F/D/MX | $1.5B | 1.9 |
Shampoo
Sales of shampoo are depressed in all mass-market channels. Units also are down by single digits. At supermarkets, sales of shampoo and conditioner packs plunged 56%, regular shampoo dropped 2.3% and dandruff shampoo was off slightly. In a mature category like shampoo, retailers can expect minimal growth ahead. However, the shine is on the pricier professional segment and natural products even in poor economic times. Manufacturers recognized the consumers' need for small self-indulgences to give them a lift even if it is just from shampoo. Earlier this year, Procter & Gamble acquired the hair care prestige company Frederic Fekkai. Products labeled “natural” or “organic” are getting attention with media reports about toxic chemicals used in hair care products and a perceived notion that products labeled as such are better quality.
| 52 WEEKS ENDING JUNE 15, 2008 | DOLLAR SALES | % CHANGE FROM LAST YEAR |
| Supermarkets | $656.4M | -2.1 |
| Drug | $427.6M | 0.4 |
| F/D/MX | $1.4B | -0.4 |
| SUBCATEGORIES | SUPERMARKET SALES 52 WEEKS ENDING JUNE 15, 2008 | |
| Dandruff Shampoo | $132.6M | -0.4 |
| Regular Shampoo | $522.8M | -2.3 |
| Shampoo and Conditioner Pack | $1.1M | -55.7 |
| CALENDAR YEAR | 2005 | 2006 | 2007 | |||
| DOLLAR SALES | % CHANGE | DOLLAR SALES | % CHANGE | DOLLAR SALES | % CHANGE | |
| Supermarkets | $648.4M | -0.2 | $667.5M | 3.0 | $667.3M | 0.03 |
| Drug | $379.5M | 3.4 | $413.0M | 8.8 | $426.4M | 3.2 |
| F/D/MX | $1.298B | 1.6 | $1.378B | 6.2 | $1.401B | 1.6 |
Gastrointestinal Tablets
Sales in all mass channels were minimal at best with units down in all channels. At supermarkets sales were down in all segments with stomach remedies off by 5.2%. Perrigo launched store brand omeprazole into the market to challenge Procter & Gamble's leading antacid tablet Prilosec OTC. This follows the switch of laxative MiraLAX last year. Sales should pick up with more Rx-to-OTC drugs into the category. Schering-Plough applied this year for a new drug application for an OTC low-dose version of the heartburn drug Zegerid. Other potential future gastrointestinal drug switches are Prevacid, Protonix and AcipHex.
| CALENDAR YEAR | 2005 | 2006 | 2007 | |||
| DOLLAR SALES | % CHANGE | DOLLAR SALES | % CHANGE | DOLLAR SALES | % CHANGE | |
| Supermarkets | $609.4M | 1.8 | $637.9M | 4.7 | $642.7M | 0.8 |
| Drug | $850.9M | 6.1 | $936.3M | 10.0 | $978.0M | 4.5 |
| F/D/MX | $1.606B | 4.3 | $1.736B | 8.1 | $1.784B | 2.8 |
| 52 WEEKS ENDING JUNE 15, 2008 | DOLLAR SALES | % CHANGE FROM LAST YEAR |
| Supermarkets | $637.3M | -1.1 |
| Drug | $976.9M | 1.7 |
| F/D/MX | $1.8B | 0.5 |
| SUBCATEGORIES | SUPERMARKET SALES 52 WEEKS ENDING JUNE 15, 2008 | |
| Antacid/Analgesic Combo | $18.8M | -4.8 |
| Antacid Tablets | $412.9M | -0.8 |
| Diarrhea Tablets | $53.5M | -1.6 |
| Laxative Tablets | $138.9M | -1.0 |
| Stomach Remedy Tablets | $12.2M | -5.3 |
Weight Control/Nutrition Liquid/Powder
There are no quick fixes in the weight-loss category, but with overweight and obesity considered a national epidemic, consumers are willing to try new weight-loss products. The new entry last year was Alli, with fat-blocking Xenical from GlaxoSmithKline in the weight-control candy-tablet segment. The candy-tablet category's dollar volume is small, $60 million, by comparison to the liquid/powder category's dollar volume of $584 million in supermarkets. But candy-tablets were up by nearly 30%, aided by Alli, which did robust sales even at a retail price of $60 per month. Drug stores appear to be winning sales in the weight-control category with dollars up nearly 9% and units up 11%. Supermarkets, which bring food, diet and health under one roof, have an opportunity to gain market share in this category. It remains to be seen how the weak economy will impact the category as consumers watch their discretionary income.
| 52 WEEKS ENDING JUNE 15, 2008 | DOLLAR SALES | % CHANGE FROM LAST YEAR |
| Supermarkets | $583.8M | 0.5 |
| Drug | $189.7M | 8.9 |
| F/D/MX | $857.0M | 2.9 |
| SUBCATEGORIES | SUPERMARKET SALES 52 WEEKS ENDING JUNE 15, 2008 | |
| Rfg Weight Control/Nutritional Liq/Pwdr | $695,688 | -30.4 |
| Weight Control/Nutritionals Liq/Pwdr | $583.1M | 0.6 |
| CALENDAR YEAR | 2005 | 2006 | 2007 | |||
| DOLLAR SALES | % CHANGE | DOLLAR SALES | % CHANGE | DOLLAR SALES | % CHANGE | |
| Supermarkets | $565.0M | -8.0 | $574.1M | 1.6 | $578.3M | 0.7 |
| Drug | $164.4M | -4.9 | $172.0M | 4.6 | $179.6M | 4.4 |
| F/D/MX | $793.5M | -7.2 | $816.8M | 2.9 | $839.6M | 2.8 |
Batteries
With no major new product introductions, battery sales remained flat at $1.6 billion in mass-market channels. Supermarkets posted a 1% decline in overall sales. However, the rechargeable segment spiked with a 17% increase at supermarkets. Researcher SBI predicts the overall battery market will be flat in 2008, followed by steady growth despite difficult economic times. Disposables are expected to remain flat. While alkalines are still the most popular household-use battery, rechargeables are seen gaining traction due to disposables' impact on the environment and innovations such as the precharged rechargeable battery, according to SBI.
| CALENDAR YEAR | 2005 | 2006 | 2007 | |||
| DOLLAR SALES | % CHANGE | DOLLAR SALES | % CHANGE | DOLLAR SALES | % CHANGE | |
| Supermarkets | $563.5M | -4.2 | $568.9M | 1.0 | $589.1M | 3.6 |
| Drug | $591.3M | -0.5 | $601.2M | 1.6 | $637.0M | 6.0 |
| F/D/MX | $1.506B | -2.7 | $1.527B | 1.4 | $1.589B | 4.0 |
| 52 WEEKS ENDING JUNE 15, 2008 | DOLLAR SALES | % CHANGE FROM LAST YEAR |
| Supermarkets | $579.6M | -1.1 |
| Drug | $641.2M | 3.5 |
| F/D/MX | $1.6B | 0.1 |
| SUBCATEGORIES | SUPERMARKET SALES 52 WEEKS ENDING JUNE 15, 2008 | |
| Alkaline Batteries | $507.7M | -1.8 |
| All Other Batteries | $45.5M | 0.3 |
| NiCd/NiMH/Lithium-ion/Lead Acid Batteries (rechargeable) | $15.5M | 17.2 |
| Zinc Air Batteries | $10.9M | 2.0 |
Deodorant
Deodorant is a mature and highly competitive category where growing sales means growing share, according to Global Information research. Two brands dominate, with Axe in the men's segment and Secret in the women's segment. Product success is dependent on meeting multiple needs. The unisex segment continues to lose relevance. Population shifts may point to opportunities among seniors and Hispanics. Hispanics and blacks are highly engaged in the category, according to the research. Meanwhile, supermarkets appear to be losing share to drug and mass channels in the $1.2 billion category where overall sales are up 4.8%. New high-performance antiperspirants, with limited SKUs and market appeal, may have added slightly to the category.
| CALENDAR YEAR | 2005 | 2006 | 2007 | |||
| DOLLAR SALES | % CHANGE | DOLLAR SALES | % CHANGE | DOLLAR SALES | % CHANGE | |
| Supermarkets | $565.7M | -0.8 | $554.3M | -2.0 | $554.6M | 0.1 |
| Drug | $350.4M | 4.4 | $357.0M | 1.9 | $384.6M | 7.7 |
| F/D/MX | $1.144B | 1.8 | $1.151B | 0.6 | $1.208B | 5.0 |
| 52 WEEKS ENDING JUNE 15, 2008 | DOLLAR SALES | % CHANGE FROM LAST YEAR |
| Supermarkets | $554.9M | 0.6 |
| Drug | $394.5M | 7.2 |
| F/D/MX | $1.2B | 4.8 |
Razor Blades
Razor blades remain a slow-growth category as manufacturers work to find the next technological high-performance advance, and consumers with spending constraints look for value and may be resisting the high price of multi-blade cartridges. Cartridges were down nearly 4% in supermarkets. Drug stores eked out a 1.7% increase in category sales perhaps at the expense of supermarkets that lost about the same amount in dollar sales. Units declined in all three channels of the $1.3 billion category. According to a new Mintel study, new product innovations that promise more effective and efficient hair removal, while eliminating the common irritations of shaving are keeping the category stable. The category is expected to continue to struggle to maintain growth, as Mintel expects this market to grow almost 10% in current prices through 2012, which equals a 4% decline when adjusted for inflation.
| SUBCATEGORIES | SUPERMARKET SALES 52 WEEKS ENDING JUNE 15, 2008 | |
| Cartridges | $318.2M | -3.8 |
| Disposables | $217.8M | 1.0 |
| 52 WEEKS ENDING JUNE 15, 2008 | DOLLAR SALES | % CHANGE FROM LAST YEAR |
| Supermarkets | $536.0M | -1.9 |
| Drug | $446.8M | 1.7 |
| F/D/MX | $1.3B | 1.4 |
| CALENDAR YEAR | 2005 | 2006 | 2007 | |||
| DOLLAR SALES | % CHANGE | DOLLAR SALES | % CHANGE | DOLLAR SALES | % CHANGE | |
| Supermarkets | $551.3M | 2.0 | $551.1M | -0.04 | $542.8M | -1.5 |
| Drug | $397.2M | 7.2 | $430.1M | 8.3 | $446.0M | 3.7 |
| F/D/MX | $1.203B | 5.4 | $1.257B | 4.5 | $1.279B | 1.8 |
Light Bulbs
The traditional incandescent bulbs may be a thing of the past as more consumers invest in more expensive but longer-lasting energy-saving fluorescents. Some retailers, including H.E. Butt Grocery, gave away free bulbs this year as a promotion to encourage consumers to make the switch. Cooperative wholesaler Valu Merchandisers Co. reported CFL sales up 280% among its retail members while sales of traditional bulbs sank 30%. Overall light bulb sales at supermarkets dropped 5%. Units took a dive in all three channels.
| 52 WEEKS ENDING JUNE 15, 2008 | DOLLAR SALES | % CHANGE FROM LAST YEAR |
| Supermarkets | $344.9M | -3.9 |
| Drug | $87.2M | 2.7 |
| F/D/MX | $549.0M | -1.8 |
| CALENDAR YEAR | 2005 | 2006 | 2007 | |||
| DOLLAR SALES | % CHANGE | DOLLAR SALES | % CHANGE | DOLLAR SALES | % CHANGE | |
| Supermarkets | $368.7M | -4.4 | $359.6M | -2.5 | $350.6M | -2.5 |
| Drug | $84.5M | -6.1 | $83.9M | -0.8 | $86.2M | 2.8 |
| F/D/MX | $577.7M | -5.9 | $558.9M | -3.2 | $551.9M | -1.3 |
Vitamins
The wellness factor may be kicking in to boost vitamin sales at supermarkets. Food channel category sales are trending upward, 7%, as is the entire $2.6 billion category, up 8.6%. Drug stores posted the highest sales gain, up 10.7%. Unit sales were up nearly equal percentages in all three channels. Nearly half (49%) of category sales are mineral supplements. The smallest category, liquid vitamins and minerals, turned in the biggest segment gain, up 35%. Liquid formulations appeal to children and older adults who have trouble swallowing pills. The Baby Boomers now reaching retirement age are expected to drive dietary supplement growth. The U.S. population of those ages 55-64 and 65-74 will increase by 20.5% and 22.8%, respectively, by 2012. Suppliers are targeting age-related conditions, such as those affecting the joints, heart, eyes and brain with popular supplements such as glucosamine chondroitin for joint health and fish oil, rich in omega-3 fatty acids, for heart disease. The category is subject to negative media and scientific reports. This year, the efficacy and safety of antioxidant supplements were again called into question. This follows a 2005 study that suggested high doses of vitamin E coincided with higher mortality rates. That report caused vitamin E sales to drop 30%-40%.
| CALENDAR YEAR | 2005 | 2006 | 2007 | |||
| DOLLAR SALES | % CHANGE | DOLLAR SALES | % CHANGE | DOLLAR SALES | % CHANGE | |
| Supermarkets | $786.7M | -3.2 | $779.0M | -1.0 | $802.9M | 3.0 |
| Drug | $1.303B | -3.6 | $1.318B | 1.2 | $1.440B | 9.2 |
| F/D/MX | $2.322B | -3.3 | $2.336B | 0.6 | $2.489B | 6.6 |
| SUBCATEGORIES | SUPERMARKET SALES 52 WEEKS ENDING JUNE 15, 2008 | |
| Liquid Vitamins/Minerals | $52.9M | 34.9 |
| Mineral Supplements | $407.4M | 7.5 |
| Multi-Vitamins | $255.0M | -0.05 |
| One- & Two-Letter Vitamins | $115.6M | 4.2 |
| 52 WEEKS ENDING JUNE 15, 2008 | DOLLAR SALES | % CHANGE FROM LAST YEAR |
| Supermarkets | $830.9M | 6.0 |
| Drug | $1.5B | 10.7 |
| F/D/MX | $2.6B | 8.6 |
Cold/Allergy/Sinus Tablets
Social abuse and regulation by U.S. Food and Drug Administration on children's products have put a chokehold on the category. Therefore, it is surprising that all three channels posted robust sales. While dollars sales increased 5.3% at supermarkets, unit volume slipped 1.4%. Drugs posted the highest sales gain of 14.5% with units up 4.2%. Meanwhile, combined channel sales rose 11.3% in the $2.5 billion category. Just as retailers settled into selling products with pseudoephedrine from behind the counter and merchandising reformulated products, the FDA earlier this year recommended children ages 2-6 should not use cough and cold medicines, resulting in recalls and new labeling. The category got a boost this year with the over-the-counter switch of Zyrtec, an allergy medication.
| CALENDAR YEAR | 2005 | 2006 | 2007 | |||
| DOLLAR SALES | % CHANGE | DOLLAR SALES | % CHANGE | DOLLAR SALES | % CHANGE | |
| Supermarkets | $736.7M | 10.3 | $714.9M | -3.0 | $707.8M | -1.0 |
| Drug | $1.163B | 21.3 | $1.248B | 7.3 | $1.339B | 7.3 |
| F/D/MX | $2.062B | 16.0 | $2.132B | 3.4 | $2.224B | 4.3 |
| 52 WEEKS ENDING JUNE 15, 2008 | DOLLAR SALES | % CHANGE FROM LAST YEAR |
| Supermarkets | $756.9M | 5.3 |
| Drug | $1.5B | 14.5 |
| F/D/MX | $2.5 | 11.3 |
Suntan Products
Sun care is a hot-selling category in all channels. Consumer awareness of sun protection factors is driving volume. The U.S. Food and Drug Administration has proposed new regulations for formulating, testing and labeling OTC sunscreen products. These regulations would require manufacturers to disclose the amount of both UVA and UVB coverage the product provides, to help consumers make more informed choices. Manufacturers now tout UVA protection, and consumers are using more product to prevent skin damage while buying products that fit in with their overall skin care regimen.
| 52 WEEKS ENDING JUNE 15, 2008 | DOLLAR SALES | % CHANGE FROM LAST YEAR |
| Supermarkets | $169.9M | 5.2 |
| Drug | $283.9M | 8.9 |
| F/D/MX | $593.1M | 9.5 |
| SUBCATEGORIES | SUPERMARKET SALES 52 WEEKS ENDING JUNE 15, 2008 | |
| Sunscreen Insect Repellent | $1.9M | -3.1 |
| Suntan Lotion/Oil | $168.0M | 5.3 |
| CALENDAR YEAR | 2005 | 2006 | 2007 | |||
| DOLLAR SALES | % CHANGE | DOLLAR SALES | % CHANGE | DOLLAR SALES | % CHANGE | |
| Supermarkets | $145.0M | 4.1 | $160.9M | 11.0 | $169.2M | 5.2 |
| Drug | $225.5M | 7.3 | $248.2M | 10.1 | $280.0M | 12.8 |
| F/D/MX | $470.4M | 8.0 | $525.8M | 11.8 | $578.9M | 10.1 |
Mouthwash
Researchers report mouthwash is the fastest-growing oral care segment in the U.S. The category performed well in all three channels with increases in dollars and units. Drug store sales were up 6.3%. Supermarket revenues increased 2.7%. The $697 million category posted a 5% gain. Mouthwashes and even rinses for kids have become an essential part of the oral care regimen. Multifunctional and premium-priced products are key to growth.
| 52 WEEKS ENDING JUNE 15, 2008 | DOLLAR SALES | % CHANGE FROM LAST YEAR |
| Supermarkets | $321.3M | 2.7 |
| Drug | $243.0M | 6.3 |
| F/D/MX | $696.9M | 5.0 |
| CALENDAR YEAR | 2005 | 2006 | 2007 | |||
| DOLLAR SALES | % CHANGE | DOLLAR SALES | % CHANGE | DOLLAR SALES | % CHANGE | |
| Supermarkets | $296.5M | 3.2 | $302.4M | 2.0 | $320.5M | 6.0 |
| Drug | $204.8M | 13.1 | $215.7M | 5.3 | $236.4M | 9.6 |
| F/D/MX | $602.3M | 8.8 | $631.2M | 4.8 | $684.2M | 8.4 |
Firelog/Firestarter/Firewood
With energy costs rising to the stratosphere, supermarkets saw an increase in sales of fireplace-related products. The firelog/firestarter/firewood category rose 1.9% in sales to $166.3 million. This growth was stronger than the same time last year, but less than previous years. Besides the drive to save energy costs, trends in this category also reflected consumer demand for more natural products. For example, firelogs lost a little ground — declining 1.8% to $115.5 million — but firewood jumped 18.1% to $33.6 million. The one other significant segment, firestarters, followed the overall category trend, rising 2.8% to $15.6 million. This is one category where supermarkets still dominate: The food channel represents 90% of $183.5 million in sales for food/drug/mass merchandisers, not including Wal-Mart.
| 52 WEEKS ENDING JUNE 15, 2008 | DOLLAR SALES | % CHANGE FROM LAST YEAR |
| Supermarkets | $166.2M | 1.9 |
| Drug | $15.7M | 10.1 |
| F/D/MX | $183.5M | 2.0 |
| SUBCATEGORIES | |
| SUPERMARKET SALES 52 WEEKS ENDING JUNE 15, 2008 | |
| Firelogs | |
| $115.5M | -1.8 |
| Firestarters | |
| $15.6M | 2.8 |
| Firewood | |
| $33.6M | 18.1 |
| DOLLAR SALES | % CHANGE |
| 2005 | |
| Supermarkets | |
| $152.4M | 4.9 |
| Drug | |
| $14.2M | -4.3 |
| F/D/MX | |
| $169.9M | 3.4 |
| 2006 | |
| Supermarkets | |
| $159.2M | 4.4 |
| Drug | |
| $14.2M | 0.1 |
| F/D/MX | |
| $176.3M | 3.8 |
| 2007 | |
| Supermarkets | |
| $162.3M | 1.9 |
| Drug | |
| $15.0M | 5.7 |
| F/D/MX | |
| $179.2M | 1.7 |
Skin Care
Skin care picked up a little at supermarkets aided by the sales of anti-aging products, with facial anti-aging up 7%, body anti-aging up 5% and fade bleach up 2%. Overall supermarket dollar volume was up 1.6%. However, the category remains entrenched in the drug channel, which accounts for half of category volume and is up 5%. Natural skin care products, up 14% across the board, according to one report, offer opportunities for supermarkets, especially those that cater to whole health consumers.
| 52 WEEKS ENDING JUNE 15, 2008 | DOLLAR SALES | % CHANGE FROM LAST YEAR |
| Supermarkets | $516.7M | 1.6 |
| Drug | $1.0B | 5.5 |
| F/D/MX | $2.0B | 5.3 |
| SUBCATEGORIES | SUPERMARKET SALES 52 WEEKS ENDING JUNE 15, 2008 | |
| Acne Treatments | $103.9M | -0.5 |
| Body Anti-Aging | $5.8M | 5.0 |
| Depilatories | $23.0M | -1.6 |
| Facial Anti-Aging | $127.4M | 6.7 |
| Facial Cleansers | $173.4M | -0.4 |
| Facial Moisturizers | $78.3M | 1.9 |
| Fade/Bleach | $5.0M | 2.0 |
| CALENDAR YEAR | 2005 | 2006 | 2007 | |||
| DOLLAR SALES | % CHANGE | DOLLAR SALES | % CHANGE | DOLLAR SALES | % CHANGE | |
| Supermarkets | $486.1M | 1.4 | $493.9M | 1.6 | $518.5M | 5.0 |
| Drug | $906.9M | 6.8 | $936.6M | 3.3 | $1.039B | 10.9 |
| F/D/MX | $1.773B | 6.4 | $1.808B | 3.7 | $2.011B | 9.4 |
HIDDEN IN PLAIN VIEW
While retailers struggle with traditional nonfood categories, according to Information Resources Inc., Chicago, several departments are not covered, yet show significant strength.
PHARMACY — The National Association of Chain Drug Stores, Alexandria, Va., has not yet updated its statistics, but last year it showed pharmacy as a $28.8 billion business in supermarkets. A recent study from the Food Marketing Institute, Arlington, Va., showed little change in related pharmacy numbers in the last year.
FUEL — Retail gas prices jumped about 33% from May 2007 to May 2008, and so did supermarket fuel sales, rising from $14.5 billion last year to $19.2 billion, according to EAI Inc., Westminster, Colo. EAI reports the number of supermarkets with fuel retail operations increased from 2,203 to 2,438 in the same period.
MAGAZINES — Single-copy magazine sales have taken a big hit as consumers cut back their discretionary spending, according to recent reports. Available numbers include the Strategic Planner of the Nielsen Co., Schaumburg, Ill, which shows a 7.4% drop to $1.1 billion for the 52 weeks ending July 12, 2008, and the 2007 SuperStudy from Willard Bishop, Barrington, Ill., which covered a larger number of stores and reported $1.85 billion for the 2006 calendar year.
GREETING CARDS — Greeting cards and related products, such as gift wrap and party goods, represent a centerpiece department for most stores. According to the Willard Bishop 2007 SuperStudy, this section held steady in its most recent reporting period of 2006 with $2.6 billion in supermarkets.
GIFT CARDS — Statistics on prepaid gift cards are among the hardest to track down. Suppliers are secretive and industry data is sketchy. Industry estimates put supermarket gift card sales in excess of $20 billion.
