During the week, Todd Hale, senior vice president of consumer and shopper insights at The Nielsen Co., hosted a presentation on CPG Trends. Hale spoke specifically on what it takes to win in the “Great Recession” of 2007, 2008 and 2009.
He stressed the value retailers are where it is at these days. To hammer that home, he talked about the growth in store counts of warehouse clubs, supercenters and dollar stores. He also noted strong growth for Kohl’s, Walgreens and CVS Pharmacy and dollar stores, such as Family Dollar Stores Inc., Dollar Tree and Dollar General Corp.
Hale was quick to point out it isn’t only value that places these retailers in the winning category. “It is their constant re-investment in their businesses that is helping them grow even as consumers’ discretionary dollars tighten. You have to spend money to make money,” he explained.
A few other growth tenets offered included the concept that low prices only attract more low prices. While retailers might think price is king, his research reveals it only keeps chains on the promotional treadmill. “While these tactics might benefit consumers, it is retailers and manufacturers hurt in the long run,” Hale said. This is because once a retailer slashes prices, the competition does it too. Hale also suggested retailers look beyond freestanding coupons, instead directing consumers to Web sites where they can get personalized promotions, which result in greater redemption rates.
Private label has a 21 percent share of the business, Hale said, and although it won’t hit the 40 percent share of European markets, private label needs to be watched. For national brands, he suggested aggressive efforts to defend the worthiness of brands.
He also recommended retailers and manufacturers look for solution selling opportunities. Although he used a food example of at-home dining, there are ideas that can be used in beauty.
For example, spa at home opportunities or even drugstore makeovers on a budget. It is possible to squeeze more sales out of stores even in this market condition. Walgreens, for example, just reported same-store sales gains of 5.3 percent. Front-end, in particular, grew 2 percent. As Walgreens continues to roll out its new look, expectations are front-end will continue to expand.
People, Places and Things
A few words with Yannick Raynaud, general manager of La Roche-Posay. La Roche-Posay is currently offered in CVS and Duane Reade, as well as in derm offices.
WWDBeautyNews: How is business, especially in this economy?
Yannick Raynaud: Our performance is out pacing the industry. We have a great heritage, great word of mouth and great research behind the brand.
WWDBeautyNews: Any new items?
Y.R.: One new item is our Mela-D Serun Anti-Ark Spot Concentrate, the first serum from La Roche-Posay clinically proven to correct dark spots and help even out skin tone. We also have La Roche-Posay Effaclar AI Intensive Acne Spot Treatment, which will reduce acne in three days.
What’s In Store
Walgreens 7,000th store: Last week CVS hit that milestone; this week Walgreens did it with new units in Brooklyn. The two continue to battle for bragging rights for largest chain. L’Oréal’s New Headquarters: This week, L’Oréal opened its second corporate office, this time in Berkeley Heights, N.J., which houses 400 employees.
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews