FRED MEYER INTRODUCES UPSCALE BEAUTY LINE

JOEL ELSON

PORTLAND, Ore. -- Fred Meyer Inc. here has introduced Personal Choice, an upscale beauty and body care line with 131 stockkeeping units.

The assortment -- which includes shampoo, face lotion, sunblock, mouthwash and deodorant -- is priced 25% to 35% below national brands. It was developed to boost sales of private-label beauty items from 10% to 30% of all health and beauty care sales.

Personal Choice carries 20% margins for the retailer. The chain makes 5% to 10% profit on sales of its national brands, according to Curt Lerew, senior vice president and director of Fred Meyer's food division. The products are designed to give an upscale image to private-label HBC, Lerew said. "While dry grocery got into retailing unique lines and upscale products such as President's Choice, it's never really happened in the toiletry areas," Lerew said. "Personal Choice appeals to today's relatively fashion-conscious consumer who looks down on using beauty items with the supermarket store name on them," Lerew added. The line, which rolled out to 102 Fred Meyer stores early this month, has 99 cents to $4.89 price points, though haircare appliances run from $9.99 to $19.99. It replaces the chain's smaller selection of 79 HBC toiletries sold under the Fred Meyer label. Fred Meyer over-the-counter remedies, however, will remain as the store brand.

The mix offers items not previously carried under the Fred Meyer brand, including alpha hydroxy facial lotions, mouthwashes and toothpaste. Other items include shampoo plus conditioner,

dandruff and baby shampoo, aloe vera milk bath, cocoa butter lotion, moisturizing sun block and beauty oil, plaque rinse and solid or stick deodorant. In private-label vs. national-brand price comparisons, a 3.5-ounce size of Personal Choice men's stick deodorant retails at $1.87, while the same size in a national brand runs $2.19; and a 6-ounce Personal Choice moisturizing beauty oil pump costs $2.88, while a national brand is $3.99.

A full-page ad ran in the "Seattle Times," which read, in part, "Fred Meyer introduces Personal Choice. Express Yourself. Quality Beauty and Body Care Products That Save You Money." The ad included a $1 coupon for any Personal Choice product purchased between May 3 and May 31, 1995. Television and radio spots also supported the private-label introduction.