Progressive Grocer - June/July 2009 - (Page HBW3)

HEALTH BEAUTY WELLNESS Baby Care Customers Still Willing to Pay for Convenience Budget-cutting consumers still opt for the convenience of disposable diapers and wipes. But is growth around the corner for the baby care aisle? By D. Gail Fleenor he baby care category has taken a hit in recent months from scrimping parents.While customers are still willing to pay for the convenience of disposable diapers and wipes, non-essential extra lotions and other care products may not be on their shopping lists. Another historic trend could bring tears to the baby care aisle in the near future: couples tend to delay having babies during tough economic times. Supermarkets continue to be vulnerable to the pull of drug chains and mass merchandisers in the area of baby care. From 2006 to 2008, drug and mass baby care sales (excluding Wal-Mart) grew 9 percent while category sales dropped 7 percent in the grocery channel, according to “Oh Baby,” a February 2009 study by Mintel, a Chicago-based research firm. In families with kids, 84 percent purchase disposable diapers at mass merchandisers while 35 percent buy at supermarkets. One reason may be the desire to buy in bulk for value and convenience, cited by 83 percent in the Mintel survey. While there may be stiff competition from other retail channels, the baby care aisle remains an important category in supermarket sales. “We are seeing baby care items trending up slightly overall www.progressivegrocer.com T of brands as a company, and no single brand is leading the category. However, we have noticed the business moving toward our store brand [Top Care] in most of our markets. Store-brand quality has improved dramatically in recent years, and with the economy being what it is, that is causing a shift that is certainly noticeable.” The Disposables Sales of disposable diapers and wipes held steady over the past year. Surveys indicate that consumers are more willing to cut out multiple lotions and other baby products before sacrificing the convenience of disposable diapers and wipes. Mothers are not willing to “trade down” either. Brand loyalty is high for disposable diapers, with 97 percent of those surveyed by Mintel indicating that some brands work better than others do. KimberlyClark’s Huggies is the most used brand, according to the survey. “Over the past six to nine months, in the diaper (3 percent to 5 percent) this year vs. a year ago,” notes Dale Pinkston, grocery category manager at United Supermarkets. “In some products, diapers for example, items are being packaged in larger quantities, which naturally leads to a reduction in unit sales. In spite of this, our unit sales in diapers are up vs. last year.” Based in Lubbock, Texas, United operates 50-plus stores under three formats: United, Market Street and Amigos United throughout west Texas and the Panhandle. Pinkston says his stores have no clear-cut leader in diapers and pull-ups. “We have a very good mix Super-premium items such as Huggies Pure & Natural and Pampers Sensitive (above) are selling well, despite the daunting economy. Progressive Grocer’s Health Beauty Wellness • June/July 2009 • HBW3 http://www.progressivegrocer.com

Table of Contents for the Digital Edition of Progressive Grocer - June/July 2009

Progressive Grocer - June/July 2009
Table of Contents
Nielsen’s Shelf Stoppers/ Spotlight: Cheese/Shredded Cheese
Market Snapshot: Sacramento-Stockton-Modesto, Calif.
Independents Report: The Advantages of Older Associates
Lempert Report: Food Experts Tackle the Economy
Industry Achievement: The Top 100 Women in Grocery
Multicultural Marketing: 2050 is Today
Retailer of the Year: Celebrating Kroger
2009 Deli/Bakery Operations Review: Shrink-Wrapped
Fresh Developments: Consumer Shifts Create New Complexities for Fresh Food Trading Partners
Produce: Brimming With Possibilities
Meat: Fired Up!
Store of the Month: Giant Eagle’s Express-Ohhh!
Cheese: Cooked Cheese and Other Spiritual Revelations
Beverage Alcohol: A Cup of Cheer
Frozen Foods: Frozen Vegetable Sales are Steaming
Real Estate: Bigger is not Always Better
Technology: At Your Service
Equipment Innovations
What’s Next: Editors’ Picks for Innovative Products

Progressive Grocer - June/July 2009