Progressive Grocer - September 2011 - (Page 162)

Nonfoods Beauty Care U.S. beauty care dollar sales have rebounded a bit as retailers have raised prices, Nielsen notes What Price Beauty? A more segmented market gives supermarkets the opportunity to win over beauty care consumers. By David Litwak ho says beauty is priceless? Beauty on a budget is a fact of life for many shoppers in these times of economic turmoil as they try to save on products in this category. Just three years ago, the outlook for high-ticket beauty aids was rosy, with aging boomers looking to prolong their good looks and younger consumers getting used to premium products from an early age. The economy may have blown the lid off the upper edge of the middle market for beauty care products. The result is that the market has become more segmented, with the ultra-luxury segment holding its own and the rest of the market rallying around the mass-market brands. This is good news for supermarkets, as well as mass merchants and drug chains, as shoppers are buying more of their beauty care needs in these outlets. The competition now centers among these channels, and not as much with traditional upper-end beauty care retailers such as department stores and specialty shops. According to Schaumburg, Ill.based Nielsen, U.S. dollar sales in the beauty care category were flat through July 2010, but have rebounded slightly as many retailers have raised prices to improve margins. The results of a W Nielsen online survey of consumers found that mass-market cosmetics could successfully sell against more expensive premium brands, even in such an image-driven category. This isn’t to say that sales of luxury beauty products are tanking; on the contrary, premium brands have started to rebound as well. Port Washington, N.Y.-based The NPD Group reports that during the first half of 2011, total prestige skin care and makeup sales in U.S. department stores surpassed their level from the first half of 2008, the period before the economic bottom fell out. Supermarkets have been holding their own with the rest of the nonluxury beauty care shoppers. “My supermarket business is up from that of the mass,” says Jeffrey Mamiye, VP of New York-based Jean Pierre Cosmetics. “Shoppers are trying not to go to the mass outlets, because they have to go to the supermarket anyway.” In an effort to economize, many shoppers don’t want to make a second shopping trip to a mass merchant, especially with gas prices still high. “The food trade seems to be keeping pace in beauty care sales and is actually a little bit ahead of the nonfoods merchants,” says Grace Tallon, SVP marketing at Port Washington, N.Y.-based KissUSA. Kiss’ product segment, Nail Art, is the fastest-growing section on beauty care shelves. According to Nielsen, as of July 30, the segment enjoyed a 25 percent sales increase across all classes of retail trade. The vast majority of these sales come from the food, drug and mass channels. This segment is another example of consumers trying to economize by buying a retail nail art product at a fraction of the cost of having their nails done at a salon. Taking Advantage The big advantage that food retailers have in the race for beauty care dollars is their captive audience. Shoppers are already in the supermarket, so it’s 162 | Progressive Grocer | Ahead of What’s Next | September 2011

Table of Contents for the Digital Edition of Progressive Grocer - September 2011

Progressive Grocer - September 2011
Table of Contents
New Era for Old World
Inside the Market Basket
Perfect Partners
Still Pink
Progressive Grocer Independent: Lasting Impressions
Breakfast Retailing Handbook: Breakfast Across the Store
Breakfast Foods/Frozen Waffles, Pancakes and French Toast
Cereal, Energy and Snack Bars, Q4 2010-Q1 2011
Fresh Priorities
Innovation in Focus
Goodness Grazing
Practical Implications of Food Safety Research
Gleaming Opportunities
Nonfoods
Putting the Shine On
Seasonal Excitement
What Price Beauty?
Progressive Grocer Tech: Sourcing Savings
Bright Ideas
Supplier Side News
Editors’ Picks for Innovative Products

Progressive Grocer - September 2011

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