Teens become price savvy in search for what's cool

Drug Store News,  March 23, 2003  by Barbara White-Sax

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Teens may tune out occasionally at home or at school, but when it comes to shopping, they're paying full attention.

Consultants and industry experts say that teens are among the savviest shoppers. They scan circulars, compare prices and notice signage. "The shopping experience starts for them when they decide they need something, and they take into account many different store features," said Paul Caine, publisher of Teen People magazine. "In a panel discussion, teens said the first thing they did when they walked into a drug store was grab a circular. Sales always are what teens long for. If they feel they got a great deal, it empowers them as shoppers and makes for a positive shopping experience."

Price is an important factor for teens when they shop--but it's not the only consideration. "Value is becoming more important to teens," said Richard Leonard, vice president of the Zandl Group, a Manhattan-based consulting group specializing in the teen market. "Teens are increasingly price sensitive because opportunities for part-time employment are down as businesses cut back."

That's why mass merchants are hard to beat when it comes to attracting teen dollars. Research from several teen-focused consulting groups shows that teens prefer shopping Wal-Mart and Target over drug stores.

"The most successful marketer with this age group is Wal-Mart-not because they do a great job targeting teens, but be cause they are cheap, and they're everywhere," said Rob Callender, trend manager at Teenage Research Unlimited, a Northbrook, Ill.-based market research group. "Target does a good job at attracting them with hip, fast-paced colorful ads."

That doesn't mean teens aren't shopping drug stores--and this is where access and convenience become even more important than price. In fact, TRU's Callender said price always is less important than desirability. If the item is hot--particularly if it makes them look good--teens will spend the money. So who has the hot new products first weighs pretty heavily here.

Convenience also is an issue. Teens will shop at a drug store that is close to where they live--even if it doesn't offer the sharpest pricing--if it means they can have access to the items they want without having to be driven there by a parent.

How teens shop drug stores

Drug chains, because of their convenient locations, are a popular destination for teen shoppers. "Our research shows that 12 million teens shop drug stores each month, and they spend $3.3 billion in drug stores a year, so the channel is very much a part of their purchasing pattern," said Teen People's Caine. "Teens told us they spent $15 to $30 a month in drug stores."

What are they spending their money on? Fragrances, cosmetics and skin care rank highest, according to Teen People's research. "Among our female teen Trendspotters, 64 percent said they prefer, purchasing HBA products at drug stores, Caine said. "Female teens' favorite section in a drug store is cosmetics."

What's new is what's important

It's certainly not news that drug chains are adept at attracting teens to their cosmetics departments--especially chains that provide them with a steady stream of new products.

Such a steady flow of new merchandise is one way drug chains such as CVS are attracting teens to cosmetics. "Cycles of newness and novelty are paramount to capturing the interest and loyalty of the teen market," Stephanie Rinaldi, assistant vice president of marketing for Maybelline, told Drug Store News.

Dana Siegel, director of or the Hotsy Totsy division of Worldwide Cosmetics, agrees. "Teens really are looking for anything new," she said. "Novelty in formulas, packaging and delivery really drive the category for the teen shopper. They want to see cool products, but they want them in a main department, not in a department that's categorized as a teen section."

Retailers are seeing that, as well, and some are rethinking strategies that designate an area specifically for teens. CVS, for example, no longer is breaking out a specific display for its grl.lab concept, according to a company spokesperson.

"When retailers delineate a specific area for teens, it's too easy for teens to grow out of that department." Caine explained.

Siegel said Longs and Say-on also do a good job integrating teen product with their main departments. "I've been seeing a few chains really expanding their offerings in everything from foot care to hair care and bringing in new lines that appeal to teens," she said.

Beyond the cosmetics aisle

The strategies that work to make a drug store's cosmetics department interesting to teens can be applied to other key categories. To make any category more appealing to the teen consumer, manufacturers say that in-store displays and promotions, tie-ins to things that interest them and a focus on newness all can grab teens' attention.