In an analysis of in-store merchandising of 15 beauty brands across two retail chains, researchers at Quri found that there are opportunities for stores to be more strategic with products outside of where they are typically positioned.
The data analysis was timed to the start of the Hollywood awards season. Quri, which is a performance-driven merchandising firm, said the data “highlights the overall display presence, display location, and out-of-stock levels on the heels of last weekend’s awards show when many brands are spending extra advertising dollars.”
Quri is tracking the products throughout the season at “hundreds” of Target Corp. and Rite Aid stores. The analysis showed that the “percentage of displays found outside of the home aisle varies significantly between drug [Rite Aid] and mass channel [Target].”
With eye, for example, the percentage of displays outside the home aisle was 18 percent at Target versus 33 percent for Rite Aid. For hair, it was 22 percent at Target and 49 percent at Rite Aid. For lip, the percentage was 20 percent at Target versus 38 percent at Rite Aid.
“While it is crucial for brands to remain top-of-mind where their products are typically found, there is an opportunity for manufacturers to find disruption within mass channels — in this case, Target — by identifying strategic areas to display merchandise,” the researchers said in their report. “Securing a presence outside of the home aisle can provide incremental sales and share gains for both brands and manufacturers.”
The categories and brands in the study include: Burt’s Bees, Dove, L’Oréal Paris, Neutrogena and Olay in skin; Clairol, Garnier, L’Oréal Paris, Pantene and TRESemmé in hair; Essie, OPI and Revlon in nail; and Maybelline, Revlon and Rimmel in eye. Quri’s premise for the analysis is that based on the ramping up of advertising by beauty brands around the awards season.
Justin Behar, chief executive officer of Quri, said the problem “is that the in-store execution of these complex campaigns is routinely lacking.” Behar said that while “poor execution costs these brands hundreds of millions annually today,” innovations from his and other firms in the market is “transforming the industry and turning better in-store execution into a strategic advantage for many of them.”
Other findings from the study showed the “display presence” of the eye category was 45 percent, which compared to 30 percent for hair and 17 percent for nail. “At just 17 percent display presence, the nail brands are a great example of a category with room for improvement,” the researchers said in their report.
Other metrics included out-of-stock levels, which as 7 percent for hair, 8 percent for skin and 25 percent for lip. “With a quarter of their products out-of-stock, lip brands including Burt’s Bees, Cover Girl and L’Oréal Paris, can only imagine the impact their performance gaps have on sales,” the report stated.