Chains develop strategies to drive cosmetic sales

Drug Store News,  June 21, 1993  

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Faced with flat sales, chain drug store cosmetic buyers are trying to attract new customers as well as stimulate more sales from customers who regularly shop their stores.

At Genovese, buyer Stephanie Hayter tries to work with venders to develop promotions and everyday presentations that emphasize color. "If we can catch the consumer's eye with a color story, we can usually make a sale," Hayter says.

"That's why Brucci does so well in our stores. They change their colors frequently and they get a lot of impulse sales because women like their shades. They're fashionable. Cutex also is now coming out with a good assortment of shades."

As a test, Hayter tried merchandising select nail enamel brands in bulk displayed in cabinets in some stores and uncarded on pegs in others. The uncarded product dramatically outsold the carded product, Hayter reports.

Hayter is currently in the process of trying to convince one major nail care manufacturer that its line would sell much better if they were to ship it to her uncarded.

"They're resistant to the idea," she said, "because it is not their traditional way of doing business. But we are currently analyzing all the cosmetic lines to measure how their sales and profits correlate to the space they're being given, and if this line is not turning as well as its competition, then its space allocations will have to be re-examined and it may be reduced or even eliminated."

Promotional events

In the meantime, Genovese is also trying to attract more customers by stressing more store events.

This spring, Genovese began creating a different event for each month. In May, they had a prom night promotion: endcaps stocked with Revlon cosmetic and beauty care products, specialty pre-packs of hair ornaments, pantyhose collections in white, black and the shimmery shades that mesh perfectly with prom dresses.

To support it, they used in-store flyers, radio advertising and traffic building in-store cosmetic demonstrations in high-volume stores.

For high-volume doors, they have also done radio remotes with leading radio stations and they've co-sponsored consumer sweepstakes with manufacturer partners.

For high-volume doors they have also done radio remotes with leading radio stations and they've co-sponsored consumer sweepstakes with manufacturer partners.

For Back-To-School, they're expanding the program to include all stores by giving consumers the chance to win a $25 shopping spree courtesy of Almay and Caboodles. All stores are participation the promotion.

Genovese is also partnering with Sassy magazine; the chain plans to give away free copies of Sassy in another promotion.

"We're doing things that are above and beyond what we've done in the past," says Hayter. "We're trying to go the extra mile to create something new, and not just feature one more cosmetic makeover promotion."

Bill's Drugs

In California, Sue Knight, cosmetic buyer for Bill's Drugs, refuses to carry designer fragrances because, she says, the margins are so tight there is no money in the category.

Bill's has been working on building up the bath category for months now, and the chain now has a boutique presentation in all its stores.

"We want to display full lines rather than a little of this or a little of that," says Knight.

Most stores in the chain now give the bath department between 12 and 20 feet. It's merchandised in the cosmetic department, not in toiletries.

For the second half of 1993, Bill's hopes to standardize the department's presentation, so that it has the same look in all 21 stores.

Color cosmetics has been a little stronger in Bill's this year, says Knight. Sales for the department are up in single-digit increases while sales for some lines like Ahnay and Neutrogena are up dramatically.

Lipstick sales have done particularly well at Bill's this year, as has sun care which is merchandised as part of the cosmetic department.

Among Bill's strongest sellers are Revlon's lipsticks, Almay's sun screen protection makeups, Banana Boat suncare, in bath care, Yardley, Sarah Michael's and BodyCology.

At K&B in New Orleans, cosmetic buyer Donna McManus says her best categories this year have been ethnic cosmetics, false nails and nail treatments.

L'Oreal's sales and Maybelline's sales have both been up. Designer fragrances continue to do well, and Fragrance Impostor's and Lady In Red, two lines of alternative designer fragrances, are doing well.

In mass fragrances, only the Coty brands are consistently doing well, and McManus says Coty's new Vanilla Fields women's fragrance looks like it will be another winner when it launches later this year.

In Pennsylvania, Sue Swartz, senior buyer for I Got It At Gary's, says her cosmetic sales recently have been encouraging.

L'Oreal has been strong in her stores, and so has Revlon whenever their products were available. Maybelline's sales have been steady and sales of their bath line, Yardley, have been terrific.