General
Merchandise
By Samantha Strong Murphey
Loyalty Gets Personal
Vibrant loyalty programs are a crucial part of
another prepaid trend: customers increasingly
Tre
nd
h
s to Watc
purchasing gift cards for personal use.
If you have a rewards program in place, “a customer who
needs to buy a new window for their house will come in and
buy a $300 Home Depot gift
to buy the window for them-
$155.43
selves,” says Frank Squilla,
The average total amount
senior vice president of sales
shoppers will spend on gift
for Atlanta-based InComm.
cards in 2012, representing
They get points toward free
a 6.7% increase, according
gas and you get a high gift-
to a National Sales Federa-
card sale.
tion survey. Shared by Mintel
card from you and then use it
“If you, as a retailer, can cre-
International, the survey says
ate a reason why people would
men will spend an average of
buy a product for personal use,”
$164.24, while women are
GPRs are H-O-T
Squilla says, “you’ve changed
expected to spend an average
New banking rules are paving the way for general-purpose
the entire model.”
of $147.06.
reloadable (GPR) market expansion.
“All the major banks and even the government is getting
involved,” Squilla says. “And PayPal has developed a GPR pro-
Taking It Online
gram launching this year that allows people to access their
There’s been some talk about prepaid-
PayPal account and now pay for offline goods in retail stores.”
wireless customers migrating online, but
But with hundreds of new products in the marketplace, how
according to Squilla, that’s not quite right.
do c-store owners take best advantage of the opportunity?
“It’s not that customers are migrating
Retailers need to have their POS systems equipped with swipe
online,” he says. “It’s that there’s a new
reload technology that allows customers to reload variable
prepaid customer developing. Former post-paid, credit-worthy
customers are now converting because the deals and offers are
becoming so compelling [that] it’s worth it to not have a long-
62%
term commitment with a contract.”
This new online customer base is opening up an opportunity for
retailers to create a Web presence around their loyalty programs.
“You’ve got to give online customers incentive to connect to
you online,” Squilla says. “Loyalty points are the way to do that.”
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C a t e g o ry M a n a g e m e n t H a n d b o o k 2012
denominations—any amount to any card.
The percentage of general-purpose reloads
that are estimated to originate from retail-store locations,
according to Mercator Advisory Group. This can translate to
upsell opportunities and increased foot traffic for retailers
who focus on this segment.
6 in 10
Bad Allergies = Sales Opportunity
Going Private
With an unseasonably mild winter behind us, many doctors are
In the past two years, product
predicting the worst allergy season in more than 10 years.
recalls and supply/shipping
The number of respondents
“Proactive retailers and wholesalers will want to be prepared
issues have been rampant,
to a 2010 Mintel survey who
and increase their inventory of allergy-related products to include
leaving c-stores and other
have suffered with a cough,
counter displays, clip strips and recommended allergy over-the-
retailers with empty shelves
cold or sore throat who agree
counter (OTC) medication within their health and beauty care
and lost sales. Looking for-
with the claim that “national
(HBC) set to optimize sales,” says Tom LaManna, director of mar-
ward, category mangers must
brands are not worth the extra
find ways to protect them-
expense when private label
selves against such losses.
works just as well.” Nearly six
keting for Convenience Valet, Melrose Park, Ill.
Beth Noteman of Lil’ Drug Store Products,
Cedar Rapids, Iowa, reminds retailers that in
Convenience Valet’s execu-
in 10 respondents agree that
cases like this, secondary displays are a great
tive vice president of sales,
national allergy brands are also
way of generating incremental business.
Jim Blosser, emphasizes that
not worth the extra expense,
national OTC brands are pow-
when private label works as
erful and worth the hassle.
well, Mintel reports.
“Whenever anyone says ‘secondary display’
to a c-store owner, they all cringe and say, ‘I
don’t have space!’ ” Noteman says. “But there
“We’re still very hopeful
are compact solutions out there.”
that the manufacturers are going to come through,” he says.
“They are reviewing operating procedures and making necessary
changes to processes to ensure they’ve done everything possible
One to six times
to avoid supply interruptions in the future.”
Noteman says keeping in close contact with suppliers may
According to a consumer survey by Mintel, most respon-
seem like elementary advice, but it’s also extremely important.
dents who take allergy, sinus, cold and flu remedies say they
“Certainly, it’s best to have information from the source about an
have used them one to six times in the past 12 months.
out-of-stock or recall situation,” she says.
Nearly one-third of respondents say they use allergy remedies
She also points out that these supply issues, compounded
13 or more times a year.
by the economic recession, are creating an opportunity for
private-label growth.
“When the right national brands are available, as a category
Energy’s Growth Spurt
manager, certainly that’s the way to go,” Noteman says. “But
By all accounts, the energy category is explod-
in the absence of those brands, something has to fill the void.”
ing, and c-store owners need to be ready for
it. Step one? Consider alternative formats, in
addition to shots. Sheets Energy Strips (much
Condoms’ Continued Growth
like Listerine PocketPaks), which are distributed
C-store unit sales of male contracep-
by Convenience Valet, and energy inhalers are
tives rose 5% in the 52 weeks ending
emerging alternatives.
Dec. 25, 2011, according to figures from
SymphonyIRI, while Nielsen shows sales up 1.7%
“Savvy retailers follow these new item
trends and aid in creating excitement at the
in the 52 weeks ending Dec. 24. Much of this is being
retail level,” LaManna says.
driven by new products; according to Dave Harrington, vice
14.6%
president of special markets for Ansell Sexual Wellness Division
USA, Red Bank, N.J., non-latex products are a growth area for
Increase in c-store unit sales of energy
the segment. Consumer research firm Mintel reports that more
shots in the 52 weeks ending Dec. 25, 2011, according to
than 30% of condom users say they would like to try new or
SymphonyIRI figures.
different types, with men and younger respondents the most
likely to make this claim.
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C ategory M anagement H andbook 2012
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