Market Report
Walgreens to Carry DR Delish in August
US drugstore chain Walgreens is to introduce a select range of Duane Reade’s DR Delish private labels to Walgreens banner stores starting in August, according to planetretail.net.
Following Walgreens’ acquisition of Duane Reade earlier this year, Walgreens management said it has been impressed by the smaller New York-based chain in areas such as its loyalty scheme, merchandising of cosmetics and fresh food, as well as its DR Delish private labels, which it described as ‘best in class’.
Read more about the DR Delish range in Private Label’s May/June 2010 cover story, DR. Goes Vogue, available online
at privatelabelmag.com.
Where’s the Beef?
The smell of beef, or more specifically black pepper and charcoal, that drivers smelled in June on Highway N.C. 150 in central North Carolina didn’t come from a restaurant. It came from a billboard promoting private-label beef.
Bloom stores, Salisbury, NC, promoted its new line of private-label beef with a billboard that produces a scent of grilled steak, according to supermarketnews.com.
Bloom, a Food Lion brand known for its creative advertising approach, erected the billboard in Mooresville, N.C. Designed to look like a giant fork spearing a piece of meat, the billboard uses an attached fan to disperse charcoal and pepper fragrance from scented oil. Bloom partnered with Charlotte, N.C. based advertising agency Birdsong Gregory, and used scent marketing from ScentAir Technologies, also based in Charlotte, to create the billboard.
The billboard pumped out scented air from 7 a.m. until 10 a.m. and from 4 p.m. until 7 p.m., through June 18. The billboard promoted the launch of Bloom’s Sheffield & Sons USDA Choice Angus brand of beef.
Petsmart Introduces Martha Stewart Pets
Petsmart (PetSmart) has introduced a new exclusive line of products designed by Martha Stewart. The line will include a wide range of pet accessories, including apparel, collars, leashes, bedding, grooming supplies, toys and more. The first products are expected to roll out in the second quarter of 2010.
Martha Stewart, founder of Martha Stewart Living Omnimedia, Inc., says, “I have always loved having a lot of pets - dogs, cats and birds, and consider them members of my family. It is very important to me that domestic animals be well fed, well groomed and well cared for, and I have always prided myself on the good health and happiness of my pets. I look forward to working with Age Group and Petsmart to provide other pet owners with the types of Martha Stewart-designed products that will keep pets happy, safe and healthy.”
“We’re bringing two world class brands together under one roof,” says Matt McAdam, Petsmart’s vice president of merchandising. “By being the only pet specialty retailer to offer Martha Stewart’s pet products, we’re giving our pet parents yet one more reason to shop our stores to find the unique solutions they want and need to keep their pets healthy and happy.”
Some items currently available include a Martha Stewart Fashion Carrier for $59.99, Martha Stewart Bone-Handle Treat Jar for $19.99, Martha Stewart Grooming Tote for $19.99, and chew toys in shapes like a chicken coop, bear, and lamb.
Age Group Ltd., which will manufacture the new product line, has been in business for over 25 years. With over 15 licensed properties, the company’s labels include Hello Kitty, Disney, Roca Wear, American Tourister and more. In addition, Age Group merchandises and designs for many retailers under private label agreements, including Macy’s, Wal-Mart, Kmart, Target and Kohl’s.
Rite Aid Launches Simplify
Rite Aid has launched Simplify, a new economy private brand. The Simplify line is part of Rite Aid’s plan to revamp its entire private brand program with a new look, new brands and additional offerings to meet the needs of today’s value-driven consumer.
Products in the Simplify brand in stores now include two-ply paper towels, one- and two-ply bath tissue, strawberry and berry flavored drinks, and bottled water. Additional household items, food storage bags and trash bags, as well as soda and snack foods are scheduled to be added to the Simplify line later this year.
“Customers continue to look for the best price for the items they need, and that’s exactly what they are getting with Simplify, our first-ever value line,” says Kathy Horton, Rite Aid senior director of Rite Aid Brands. “Our new price fighter private brand offers customers quality products at prices they’ll love.”
Value shoppers can watch short informational videos about Simplify paper towels and bath tissue on Rite Aid’s Video Values online savings program site at www.riteaid.com, earning $1 off coupons. Videos on the site can be viewed by brand, category or manufacturer. Customers also receive a $5 Rite Aid Bonus Coupon when they earn 20 video credits. Some videos are worth multiple credits.
Store Brands Score Gains in the U.S.
Private label scored strong gains across all major U.S. retail channels in 2009 as consumers increasingly switched from national brands and drove store brands to all-time highs in both volume and total revenue, as well as market share, according to latest industry statistics published in PLMA’s 2010 Private Label Yearbook.
On the heels of a powerful growth surge for store brands in 2008, sales of the products increased again last year by +1.8 billion units while national brand units were down -2.1 billion. Along with the conversion of a full percentage point in unit share from national brands to the private label column, store brands added $2.7 billion in value to reach $86.4 billion in total sales. National brand sales increased by $1.6 billion, but those gains were largely, if not entirely, the result of higher prices.
In supermarkets, store brands reached an historic high of 23.7% in unit share. Private label units were up +6.4% for the year compared to a decline of -1.7% for national brands. The growth in store brand units (+1.7 billion) more than offset the erosion of national brands (-1.5 billion), resulting in a net gain for the channel as a whole and stemming a multi-year trend of overall unit losses in U.S. supermarkets.
On the revenue side, store brands accounted for 90% of all gains in supermarkets, adding $1.5 billion in new sales (+2.9%), while national brands were virtually flat (+0.1%). Moreover, the decline in national brand units suggests that even their modest sales gain of $200 million was a result of price inflation. Overall, store brands sales in supermarkets reached $55.5 billion and dollar market share climbed to 18.7%; both figures were new all-time highs.
In drug chains, market share in units reached 16.3% as volume grew by +4.0%. National brands recorded a loss of -3.9% in units. As in supermarkets, the absolute growth of 461 million store brand units across all departments more than made up for the channel’s loss of national brand volume (-378 million).
Store brands were responsible for 52% of the total sales growth in drug chains, adding close to a half billion dollars in new sales. Store brand revenue grew at a vigorous +8.8%, while national brands tacked on only +1.2% in sales. The total value of store brands sales in drug chains was $6.1 billion, and dollar market share was 14.1%; both figures were also record.
“First published in 1992, the PLMA’s annual Yearbook coverage has grown from fewer than 200 product categories to more than 700, reflecting the expansion and penetration of private label products in the marketplace,” said Brian Sharoff, PLMA president.
“The past year has even greater significance since it is the first full year of the impact of the recession. Not surprisingly, the statistics document the amazing increases in store brand popularity. But as most market researchers know, the growth of store brands is by no means a recessionary phenomenon. Its success began years before the current downturn and is rooted in increasing assortment, quality ingredients, innovative product concepts, and retailer commitment,” he added.
Data for the Yearbook was compiled by The Nielsen Company for the 52 weeks ending December 26, 2009. The 2010 Private Label Yearbook is distributed to at no charge to PLMA members as well as to retailers and wholesalers. All others may purchase the publication for $1,500 by contacting PLMA at (212) 972-3131.
A&P Promotes Produce
The A&P family of supermarkets has expanded its Live Better! Wellness Club to include a Fresh & Healthy Rewards loyalty program. Whenever a Live Better! Wellness Club member spends $50 in the produce section of any A&P, SuperFresh, Waldbaum’s or Pathmark store, they will receive a coupon for 20% off a future produce purchase, according to supermarketnews.com.
The Live Better! Wellness Club also offers members discounts on the company’s America’s Choice store brand fresh-cut fruit and vegetables, prescription discounts for senior citizens and other benefits.
No Frills Fresh Offers New Brand
No Frills Fresh has debuted a 61,000-square-foot store and a line of store brand products with its latest fresh concept store in Elkhorn, NE, a community just west of the Omaha metro area, according to progressivegrocer.com.
The Omaha-based management-owned independent has been steadily expanding its market share locally. Along with the expansion of its stores, it has launched the private label offering, marketing under the Chef’s Own brand, to represent its growing line of affordable fresh deli entrees and side dishes created daily.
According to No Frills president and CEO Fred Witecy, the new Chef’s Own brand creates fresh new choices to make meal time more fun. “We’ve designed this store to serve the needs of an active community with lots of young families,” he said. “Chef’s Own gives families lots of affordably priced choices - top-quality and made fresh every day.”
To that end, No Frills has hired an award-winning executive chef to lead the introduction of the new in-store brand.
Robert K. Barr, a former Guckenheimer executive chef with Union Pacific Railroad, also plans to roll out a complete line of deli entrees. The opening-week menu includes 25 salads, low in sodium and made with fresh, natural ingredients. Among the varieties are Naples Style Tortellini Salad and Midwest Roasted Corn & Parmesan Pasta Salad.
The Elkhorn No Frills Fresh store offers a broad selection of custom cuts of USDA Choice beef, Naturewell natural beef, Summit Creek natural lamb, MBA organic chicken, Farmland pork, and fresh seafood. Also available at the location are a broad natural and organic food selection, an in-store bakery, a floral shop, and a selection of wines rated 90 or higher.
