Packaged Facts: Pet drug sales to reach $6.7 billion in 2011
NEW YORK — While sales figures for pharmaceuticals are frequently reported on, drugs for people’s four-legged friends also are a money maker.
According to Packaged Facts, a division of MarketResearch.com, retail sales of pet medications — including sales through retail stores, online retailers and veterinarians — will reach $6.7 billion this year.
A new report from the firm, "Pet Medications in the U.S.," mass market channels are the least involved in pet medications among retailers. But online pharmacies, including those of Target and Walmart, have expanded their product range. Currently, according to the firm’s May-June 2011 Pet Owner Survey, 71% of prescription-only heartworm medications and 40% of nonprescription flea and tick spot-ons continue to be sold through veterinarians, which for many years "have been in the catbird seat" in pet medication sales.
"The underpinnings of the U.S. pet industry remain strong, and the outlook is especially favorable for all things pet-related," Packaged Facts publisher David Sprinkle said.
In some ways, trends driving pet medications seem to mirror the ones driving human medications. "Taking into account market drivers including the aging pet population, pet obesity and the heavy involvement of major pharmaceuticals companies, pet medications sales should return to their pre-recession rates of growth over the next few years, with annual percentage gains projected at 10% by 2015."
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Analysis: High-end consumers are clipping coupons in search of a shopping ROI
JACKSONVILLE, Fla. — Shoppers are just as promotion-driven as they have been since economists first coined the term the "new normal" economy — and that’s not likely to change, according to a new "The Why? Behind the Buy" report released Wednesday by Acosta Sales.
Acosta has dubbed the new normal shopper "Shopper Inc.," given today’s inclination toward taking an extremely prepared and educated approach to the grocery trip. As many as 72% are making a list for their routine shopping trip, with 54% buying more items on sale, and 33% going online or using apps to save money all in an effort to realize a return on investment, or ROI.
Acosta advises retailers and manufacturers to not only expect conservative spending behavior to continue, but also to develop strategies for consumers at either end of the spectrum. "There are two economies, one for under $50K and one for more than $50K," the report read. "Understand the increasing divide between low-to-middle income households and higher-income households, and what it may mean for your brand."
Approximately 10% of households generated less than $45,000 in annual income or utilizing food stamps, and one-third matched their primary shopping trip to their paycheck. Due to increased gas prices, they are consolidating trips, buying more items on sale, buying more store brands, switching to less expensive brands, buying fewer groceries overall, as well as doing without specific products.
Households earning more than $100,000 in annual income are not necessarily looking to spend less, but they are pre-planning more to be smarter shoppers. They are more likely to clip coupons and decide which brand/product to buy based on the circular and what’s on sale. In store, they are more likely to compare the price-per-oz. part of the tag and look at the package when making their decisions. They also are more likely to try new products and to buy healthier products even if they are more expensive, according to Acosta.
Traditional store circulars remain among the most popular promotional items for shoppers, with 85% reporting that store circulars influence them and nearly 50% said they clip coupons from the circulars. And while traditional sales tactics continue to be more widely used than digital offerings at the grocery counter, digital is increasing in influence, with 33% of shoppers going online to save money via online coupons, retailer and brand websites, and email subscriptions.
Acosta conducts "The Why? Behind the Buy" survey two times per year. The respondents are more than 1,000 shoppers, randomly selected across all generational, economic and ethnic groups across the United States. The current survey was fielded in July 2011. To access the full report, visit Acosta.com/why (a free registration is required).
Coupons may offer discounts, but they're also a form of advertising for companies. Whether you clip coupons from the Sunday circulars or print them from Printapons, you'll see ads for hundreds of products in the process
NRF calls for sales tax fairness for brick-and-mortar, online retailers
WASHINGTON — Internet retailers have an unfair advantage over Main Street merchants when it comes to sales tax, and legislation may be the solution to help level the playing field, according to the National Retail Federation.
In written testimony submitted to a House Judiciary Committee hearing on sales tax fairness legislation, NRF SVP government relations David French said a "sales tax collection discrimination" exists between brick-and-mortar and remote retailers due to a 1992 Supreme Court ruling, which declared that retailers are required to collect sales tax from out-of-state customers only if they have a physical presence, such as a store, warehouse or office in the customer’s state.
The committee is scheduled to examine constitutional limitations on states’ ability to require out-of-state sellers to collect tax on sales made to their residents, NRF said.
“Sales tax fairness requires all sellers, whether brick and mortar or remote, to collect sales taxes, but only after the states have simplified their collection requirements,” French said. “NRF urges the committee to enact sales tax collection reform that will level the playing field between brick and mortar and remote sellers by granting states the authority to collect sales taxes from all sellers regardless of their distribution method.”
French also added that cash-strapped states are losing an estimated $24 billion each year to untaxed online purchases.
In related news, Amazon VP global public policy Paul Misener also submitted testimony to the House Judiciary Committee on the matter, saying that "Congress — and only Congress — may, should, and feasibly can authorize the states to require out-of-state sellers to collect the sales tax already owed."
"Congress should authorize the states to require collection, with the great objects of protecting states’ rights, addressing the states’ needs, and leveling the playing field for all sellers," Misener told the committee. "States’ rights should be protected. States need the freedom to make their own revenue policy choices. Fairness among sellers should be created and maintained. Sellers should compete on a level playing field. Congress should not exempt too many sellers from collection, for these sellers will obtain a lasting un-level playing field versus Main Street and other retailers. Congress should rectify the current imbalance and avoid a future imbalance."
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