Walmart debuts new clinic concept
Walmart executives hosted a series of store tours and briefings in advance of its company shareholders meeting in June, reported DSN sister publication Retailing Today. “Walmart opened its first owned health care clinic in Copperas Cove, Texas, recently and introduced a pricing model eerily similar to the flat rate $4 and $10 generic drug programs launched eight years ago,” noted editor Mike Troy. “Except in this case, Walmart associates can see a primary care doctor at the clinic for $4 and customers pay $40.” The clinic will serve about 4,500 employees who work in proximity to the store, according to Labeed Diab, Walmart’s president of health and wellness.
For more on Walmart’s annual shareholders’ meeting, including 10 key takeaways for suppliers, visit http://bit.ly/1oOrEwE.
I get a lot of questions about which brands are winning with social media, and why. It’s one thing to have a Facebook page and get people to “like” you, but how do you use it and other social media platforms to engage customers and sell more?
In compiling the coverage for our Summer Beauty Bombshell Report, we came across Sephora’s Beauty Board, which leverages Facebook, Pinterest, Twitter and Google+ to enable Sephora customers to upload their purchases and share the new looks with friends and Sephora customers.
According to digital think tank L2, more and more prestige beauty brands are using such photo-sharing technologies as Instagram, which is generating 1,000 comments per second, 1.2 billion “likes” per day. Of the 250 brands it surveyed, 92% are using Instagram, and 14% are utilizing user-generated content, kind of like Sephora is doing with the Beauty Board.
A picture says 1,000 words; how many products can it sell?
National brands drive growth in first aid
Around the world, millions of people are hurt or killed from injuries every year because adequate and timely assistance is not provided. However, the proper use of first aid reduces deaths, injuries and impact during disasters and daily emergencies. First aid provides an immediate response to a — sometimes life-threatening — emergency until the individual can seek professional assistance. First aid saves lives.
(For the full report, including charts, click here.)
DSN has partnered with Competitive Promotion Report and IRI to create a series of exclusive reports. This month the analysis explores the market trends around retailer margin and promotional spending in the first-aid category, looking at the major national brands in the drug channel, focusing particularly on the anti-itch (including calamine), ointments/ antiseptics and bandages (including gauze and cotton) categories.
Within the first aid anti-itch category, store brand is the No. 1 brand, with retail sales of almost $74 million, nearly 2.5 times that of the No. 2 brand, Cortizone 10 from Chattem. However, Chattem places three brands in the top 10, with total retail sales of almost $60 million. Total trade spending in anti-itch is the lowest of the three categories included in this study. During the past 52 weeks, Chattem branded anti-itch products generated almost $27 million in retailer margin for drug retailers — 1.7 times that of Johnson & Johnson, the next closest competitor in this category.
With total retail sales approaching $148 million, store-brand first aid ointments/an-tiseptic products exceeds the top three national brand manufacturers combined. Johnson & Johnson (Neosporin) is by far the largest national brand manufacturer, with retail sales in excess of $62 million, followed by Beiersdorf at approximately $30 million and Merz Pharmaceuticals at around $18 million. Trade spending by the national brands is the highest in this category, as national brand manufacturers attempt to maintain and grow share. Johnson & Johnson brands contributed more than $28.5 million to retailer gross margin over the past 12 months, while Beiersdorf and Merz contributed $10.7 million and $6.2 million, respectively.
Bandages are a very important component of any first-aid kit. It comes as no surprise that with almost $170 million in retail sales, store-brand bandage sales are 1.4 times greater than the next nine national brands combined. The various J&J brands make up approximately 70% of the national brand bandage sales, with 3M brands making up the majority of the balance. Trade spending for bandages tends to be more seasonal than the other two categories included in the analysis. J&J brands generated almost $63 million in retailer margin in the drug channel over the past 12 months, and 3M brands contributed $19 million, while Medline bandage products generated a little more than $3 million.
Other key findings for the first aid category include:
- Despite store-brand retail sales dominance in all three categories, national brands drove growth;
- The three first-aid categories are influenced by the same seasonal trends;
- Anti-itch and ointment peak in July, and bandages only lag the peak by three to four weeks, peaking in August of each year shown;
- For the anti-itch category from 2012 to 2013, Chattem showed the strongest manufacturer performance, with 11.6% growth in unit sales, while store brands lost in overall unit sales, with 4.9% loss;
- Within the ointments category from 2012 to 2013, Beiersdorf showed noticeable gains, with a 15.7% pickup in units sold, while store brand growth was 0.1%; and
- For bandages, 3M and Medline posted similar gains at 4.6% and 4.9%, respectively, while store brand posted a 2.5% unit sales loss.