Retailers shift promotions to nonfood categories

Julie Gallagher

The majority of key nonfood categories profiled in SN’s Annual Category Guide posted flat to modest sales increases.

This was reflective of sales across the entire store, with any growth coming from true inflation or higher prices resulting from decreased promotional activity, according to Sue Viamari, editor of thought leadership for IRI.

But the latter wasn’t as large a factor in certain nonfood categories, such as drug, and health and beauty care, where traditional supermarkets shifted their promotional pricing in an effort to more effectively compete with chain drug stores.

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As supermarkets transform their stores into health and wellness destinations through expanded pharmacy services; by establishing more in-store clinics; and by pairing dietitian and pharmacy services, many are raising their wellness profiles in other areas of the store, as well.

In the perimeter, retailers are investing in organics and fresh food offerings in an effort to win back share from fresh format stores, noted Jim Hertel, managing partner at Willard Bishop.

And, if they’re not doing so already, grocers should cater their center store selection to Americans who are taking a more holistic approach to healthcare by preempting chronic disease and other ailments with a healthy diet. 

After all, Baby Boomers and older Americans who are “getting ahead of the curve rather than fighting back from the depths of chronic disease” account for more than half of CPG spending, Viamari said.

This do-it-yourself concept even applies to splurges in areas like hair care and home spa treatments where shoppers are justifying the cost of premium products that can be purchased at grocery, since they’re saving a bundle on salon and spa visits, Viamari added.

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