Home' Convenience and Impulse Retailing : April May 2014 Contents April / May 2014 | C&I | www.c-store.com.au
One product that is in demand all through the year
is condoms and these are ex tremely well suited to
sale in convenience. Condoms and lubricants are
often bought on impulse or distress (and mostly
incremental) through the convenience channel.
The fact that convenience stores commonly
open longer than pharmacy and grocer y helps
differentiate the P&C channel and allows retailers
to capitalise on incremental opportunities. The
majority of condom purchases take place in the
evening, with the highest condom sales often taking
place bet ween Thursday night and Sunday evening.
Condoms are a product which requires clever
marketing from covenience retailers as some
customers find buying them somewhat
embarrassing. To overcome this, retailers should
ensure condoms are easy to find as people are
not as likely to ask where to find them as they
might be with other ‘ less embarrassing’ segments.
It also makes sense to dual locate condom
products on shelf and on the counter where
possible, especially in the evenings when people
are on their way out or on their way home.
Ansell, which has more than 80% market share of
condom sales through convenience, says a counter
unit containing the top selling range will maximise
sales. It says a clipstrip or hangsell unit near the
front counter is also a good idea as it is easy to
reach for customers who may be reluctant to ask.
The company, which sell the polyisoprene
non latex condom brand, Skyn and the Lifestyles
range, says that if there is not enough space to
have a counter unit on display permanently,
operators should put one out during peak selling
periods like Friday and Sat urday nights.
Tissues and toilet paper are other products
that convenience customers simply expect
to find on the shelves. Nonetheless, the toilet
tissue categor y has been fairly flat through
convenience recently. This has been due to
intense price promotions and consumers
tending to buy larger bulk packs less often.
Leading manufacturers like Solaris Paper says
toilet tissues, especially the two pack is an ideal
convenience store product that satisfies the
needs of people r unning out of toilet paper late
at night or on their way home in the evening.
Solar is says its range of Paseo – Absolute
Silk 3 ply toilet tissue which is available
in convenience stores, IGA and other
independent retailers, is a massive seller due
to its high quality and affordable price.
Of course, positioning toilet roll and tissue in prime
locations to attract impulse buys is one of the keys
to success but continuing innovation is also v ital.
The toilet tissue categor y is often seen by
the consumer as relatively boring with
not much innovation. To achieve growth
in the future, Solaris says the consumer
wants to see attractive and innovative new
products which offer additional benefits.
The company has recently launched a number of
line extensions within the Paseo range, such as
the 24 pack bulk offer and a paper towel range.
Personal care products as a whole is a categor y
that never stands still and product launches
are a great opportunity for stores to gain
leverage and benefit from supplier advertising.
This year, Johnson & Johnson Pacific will
be launching products such as Codral Relief
Mucus Cough Warming Sensation 150mL ,
which is expected to sell ver y well through
convenience, particularly in the winter months.
Next summer will also see Johnson & Johnson
Pacific launch its successful Neutrogena
sun protection range into the convenience
channel, including SPF 50 and 50+ SKUs from
the Ultra Sheer and Beach Defence ranges.
It’s a similar stor y in condoms, where recent
innovation has led to a lift in sales. Ansell ’s
Skyn range includes Skyn Extra Lubricated,
with 40% more lubricant than Skyn Original,
and Skyn Intense Feel, which is the world ’s
first text ured non-latex condom. Both have
been a hit following recent launches.
Ansell says the brand is set to continue to grow at
astonishing speed as more and more consumers
discover the non-latex condom alternative.
Ansell says the success of Skyn and LifeStyles Zero
brands shows that consumers are willing
to pay a premium for tr ue innovation. The
Ansell range – packaged in premium, sleek
boxes – offer retailers high dollar margins,
with a higher dollar value per piece.
The great advantage of condoms – like most
personal care products – is that a convenience
retailer can achieve a high return from minimal
space and capture impulse purchases.
Most convenience retailers can easily see the
value of stocking staples such as bread and
milk, and high-margin, high-impulse products
such as snacks, cigarettes and confectioner y.
However, the appeal of personal care products
may not be as obvious and the category
cer tainly requires additional effor t – but it is an
effort that will generally be well rewarded.
Convenience and Impulse Retailing would like to thank Johnson & Johnson Pacific, Ansell and Solaris Paper for supplying information for this article.
... a clear, easy‐to‐locate section
for personal care products will make
a major difference to sales....
AT A GLANCE
• Personal care products generally
have a relatively high price point and
deliver retailers healthy margins
• Medicinal lines are enjoying strong
growth through the convenience
channel as shoppers become more
accustomed to finding them there
• Most space-challenged convenience
stores are better off stocking a few
key brands representing a number
of personal care segments
• The trend in recent years towards
‘miniature’ personal care products in
convenience has largely disappeared
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