Discount stores attract heavy cosmetics users

Discount Store News, Sept 4, 1989 by Mary Ellen Kelly

Discount Stores Attract Heavy Cosmetics Users

The two strong suits of the discounter cosmetic/fragrance department are low-ticket merchandise that lend themselves to color experimentation such as nail tips or polishes, and alternative designer fragrances (ADFs).

Also in their favor, discount stores attract a much higher percentage of "heavy cosmetics users," than do other types of stores. Defined as women who had purchased at least seven of 12 different types of cosmetic products during the past year, these heavy users spend an annual average of $154 on cosmetics and fragrance items, compared with $61 for moderate users and $18 for light users.

About one-quarter of the 453 women across the country who participated in the survey, conducted by Chicago-based Leo J. Shapiro & Associates exclusively for DSN, said they have shopped at discount stores for cosmetics and fragrances during the past year. Additionally, roughly 20 percent of the respondents singled out either K mart or Wal-Mart as outlets where they made their most recent purchase of these products.

Drug stores and department stores were favored by 50 percent and 48 percent, respectively. While twice as many women said their last purchase was at a drug store rather than at a discounter, K mart and Wal-Mart were each mentioned more than any single drug store chain. Revco and Osco were the top rated drug store chains, but each were noted by only about 6 percent of survey participants as the place where they made their last cosmetics or fragrance purchase.

Specialty cosmetic sources were very popular among the women in the survey. Avon was the most often cited cosmetic and fragrance source of all outlets--drug, discount, department or specialty. Mary Kay was also a popular specialty source, named by another 8 percent.

While cosmetic and fragrance customers may shop at department stores, drug stores and specialty sources more often than discounters, each of these female customer groups spent an average of $83 each year in the department, regardless of store type.

The special attributes of the discount store customers include a greater than average annual expenditure on eye make-up, nail polish, base and face powder. Discount store shoppers are also much heavier cosmetic users; 42 percent were heavy cosmetic purchasers compared with 26 percent of those who generally do not shop discounters.

More women said they bought perfume or cologne during the past 12 months than any other product included in the survey. A total of 57 percent of respondents purchased a fragrance during the past year. On average, these women spent a total of $25 on three fragrance purchases during the past year, nearly $9 more than the amount they spent on facial creme, the second-ranked product on the survey.

The amount spent on fragrances was inversely related to the total amount spent on cosmetics or fragrances during the year. That is, those who spent the least amount of money on the cosmetics/fragrance category, spent the largest percentage of those dollars on perfume or cologne; those who spent the most on cosmetics spent the smallest percentage of dollars on perfume or cologne.

Shoppers Know About ADFs

Alternative designer fragrances had a high recognition rate--60 percent have seen these products. About 25 percent of the women familiar with ADFs have tried them. Women who shop discount stores are more likely to try ADFs. Among discount store shoppers who have heard of these fragrances, 38 percent have tried them.

Nine percent of the women said they would be very interested in purchasing an alternative designer fragrance product and 26 were somewhat interested. The 62 percent who were not at all interested decided not to buy an ADF for two reasons: these women either do not wear perfume very often, or they objected to the quality of the imitations.

Discount store shoppers were significantly more interested in ADFs. Forty-one percent of discount store customers were interested in trying an ADF, compared with the 34 percent of non-discount shoppers that were similarly inclined.

Not surprisingly, the most favorable quality of ADFs was the low price. Eighteen percent of those who made a positive statement mentioned price as a factor.