MACEY'S OWN HERBALS LIFT VOLUME

LAURA KLEPACKI

SALT LAKE CITY -- Sales of herbal supplements have increased and become more profitable for Macey's Grocery Stores here since the debut of a private-label line.

In addition to the nine private-label items offered, Macey's carries herbal items from two branded lines, Nature's Bounty and Sundown.

"All have been doing well," said Ralph Blanchard, variety department supervisor for Macey's store in Sandy, Utah, and merchandising coordinator for the company's other six units. "It's big here in Utah. People are looking for more natural types of health supplements."

But the private-label items, supplied by Western Family Foods, Tigard, Ore., have helped further stimulate category sales, he said.

"Private label is less expensive than the other two [lines]. And Utahans are always price conscious -- they have big families, so price is always an issue," said Blanchard.

Retail prices on the private-label items range from $8 to $14, and the profit margin averages about 10% higher than for their branded counterparts, said Blanchard.

"It is a profitable category," he commented.

The Western Family private-label line includes echinacea, valerian, saw palmetto, gingko biloba, goldenseal, ginseng, a super multivitamin with herbs, kava kava and St. John's Wort. All items come in a 50-count size, except for the super multivitamin, which is offered in a 75-count size.

The herbals are merchandised next to the regular vitamin set, which is located in the stores' health-food aisle, said Blanchard.

The private-label items are given one facing each. When introduced in January, to fit them into the set, some slow-moving items were eliminated, he added.

Blanchard said that so far one facing has been sufficient, but for promotions the stores sometimes also use off-shelf displays.

"We advertise them about once a month in one of our ads, and they are discounted then, usually at about 30% off," said Blanchard.

He noted that Macey's had received some requests from customers looking for more herbal products, which was one reason for signing on the private-label line.

"Sales of herbals still don't compare to traditional vitamins. It is still on the fringe," Blanchard said. "But there is enough demand for these that we feel the need to carry them."