Promotions can generate greater shopper awareness of health and beauty products.
to improve product visibility and make shopping easier, she said. Tops is seeking to become a destina - tion for shoppers seeking value and new products and is leveraging promotions that encourage trial and enhance shopper loyalty, including the use of buy-one-get- one-free offers and coupons, Goetz said. The retailer also cross-merchandises health and beauty products with other household and grocery items, she said. “These programs help break habitual shop - ping patterns and remind customers that there is a comprehensive health and beauty assortment alongside food,” Goetz said. Space constraints, however, are restrict - ing the number of selections that stores can offer, she said. “Health and beauty products typically do not generate the same high volumes as core grocery items, limiting opportunities for prominent perimeter dis - plays or impulse placements,” Goetz said. “Merchandising options outside the aisle are especially limited in some store formats, making it harder to drive awareness and trial.” She added that Tops still is positioning stores as one-stop shops for groceries and health and beauty needs and evaluates the possibility of expanding category space as stores undergo remodeling or updating. A lack of shelf space also makes it dif - ficult for grocers to match the amounts of items that stores in other retail channels are offering, Minn said. “They will never be able to compete with beauty specialty stores or even mass super stores,” he said. “That means consumers are unlikely to discover new products or brands in super - markets unless they are private label.” Also hampering sector activity is a
reluctance by many supermarkets to con - centrate on growing the category, analysts said. Such operators “do not make the same investments in understanding their con - sumers as those retailers that have in-house strategy teams or consumer research capa - bilities,” Minn said. “Smart and effective merchandising requires that health and beauty operators have a deep knowledge of their customers, including their preferences and how to meet those preferences.” Retailers should reimagine aisles as curated destinations while highlighting product claims and affordability and offering sensory engagement, said Larissa Jensen, Circana global beauty industry advisor. “Optimizing assortments, leverag - ing data-driven planning and integrating online research with in-store experiences can help supermarkets meet evolving consumer expectations and drive category growth,” she said. More grocers already are benefiting from promoting products, such as antiperspirants and deodorants, during off-peak months instead of concentrating solely on tradi - tional seasonal peaks, Jensen said. “This reflects a deliberate effort by retailers and manufacturers to offset seasonal declines and maintain category momentum,” she said. Operators also must have the ability to evolve or pivot when customer preferences change, Minn said, noting that outside advi - sors and distributors often can provide data or understandings. A HABITUAL CHANGE Having more consumers perceive super - markets as go-to destinations for health and beauty products remains a major
merchandising obstacle, Jensen said, noting that “many customers tradition - ally purchase the items at mass, drug or online retailers, and subscription-based online shopping is further intensifying competition.” Low shopper perception and limited store assortments as demand rises for value and wellness products and interactive experi - ences are further hampering supermarket activity,” she said. Yet ample growth opportunities remain as supermarkets are one of the few stores that consumers visit on a weekly basis, Minn said. “The focus is on having the right prod - ucts, at the right price, with consistent supply, so customers can confidently meet their wellness needs while completing their regular grocery shopping,” Goetz said.
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