REASOR'S EXPANDS PRIVATE-LABEL HBC LINE

JOEL ELSON

TAHLEQUAH, Okla. -- A new and expanded private-label line at Reasor's is expected to have wide consumer appeal.

"People are looking for lower-cost items. When they can buy an item with the same ingredients for less, they switch to private label," said Les Weese, director of merchandising at Reasor's. The retailer has introduced about 350 Best Choice health and beauty care items -- the controlled label of its new nonfood supplier, Associated Wholesale Grocers Valu Merchandisers nonfood division, Kansas City, Kan. -- in four stores. The new mix, which contains about 100 more selections than Reasor's former private-label line, is expected to be in the rest of the retailer's stores by next month, Weese said. The former line was Marquee by Fleming Cos., Oklahoma City.

Priced about 20% below national brands, the assortment is expected to increase sales, though Weese declined to say by how much.

The line is part of a new HBC program that began in January, when Reasor's hired Valu Merchandisers as its supplier.

The switch helped lower HBC retail pricing about 4% because Reasor now has its HBC drop-shipped. Its former HBC supplier had a fully racked program, said Bill Dungan, director of nonfood. Each category in the new mix is being placed in the retailer's 400-linear-foot HBC sections in one to three facings next to national brands. Vitamins and hair colorings are being merchandised in eight feet of space, which is double the room they had before.

"We saw greater sales potential from these two categories, which we were a little light in," Dungan said. "In fact, we could use even more space for vitamins." Reasor's plans to give vitamins 16 feet of display space in all new stores. Once all HBC sections have been reset, Reasor's will debut a new advertising campaign to broaden "awareness of our low prices," said Weese.