Service extras, technology add new life to health & beauty care department - K Mart Corp.'s Auburn Hills, Michigan prototype store health products department

Discount Store News, Feb 1, 1993

At first glance, the pharmacy and health & beauty care department at Kmart's new Auburn Hills store does not immediately look very different from other units. But that's not so.

The department got as much of a physical facelift as the rest of the store. The fixtures are new, increasing from 2 to 3 ft. to 4 to 6 ft.; the signage is new, and cross-merchandising is used to every advantage. But at the heart of the improvements at Auburn Hills and in future Kmart stores is the operations behind the scenes and the service extras that have been added for consumer convenience.

The real power behind the merchandising of this area comes from an advanced computerized replenishment system that is keeping inventories humming. While the idea of quick response is well entrenched in the soft lines area, it is newer to H&BC. And Kmart has managed to lead the pack and set the standard in that arena.

"The writing was on the wall when I came to Kmart two years ago. I knew that we needed to do this and we set out to find the best computer system we could," said Kevin Browett, senior director, pharmacy operations. "We're the first retailer to have this up and running."

The result has been a real improvement in inventory management and ultimately better service for the customer. Vi-Jon Laboratories, Bausch & Lomb, Shering Plough and Alcon Labs were among the companies recently recognized for their commitment to what Kmart calls its Partners in Merchandise Flow program.

Michael Brown, director of inventory information, Vi-Jon, noted that the program is "leading edge and only the beginning of things to come" in the industry.

"We've had other retailers express interest in creating similar programs, but up to now they have not had the capabilities," Brown said. "They have a big hurdle to overcome since Kmart has already worked on this."

The improved flow of goods is also essential to Kmart because of the recent legislation regarding pharmacy prescriptions. The legislation varies from state to state, but basically requires a pharmacist to consult with a patient before releasing a prescription. The legislation took effect at the beginning of the year so the Auburn Hills facility had to be ready for it.

Browett noted that having the computer system in place eliminates some of the growing pains that many retailers are likely to face as their operations change both due to new legislation and an ever competitive marketplace. "We've always taken a positive approach with regard to the pharmacist. His or her job is to communicate to the patient. You have to acknowledge that the pharmacist is the frontline when it comes to consumers," he said.

Consumers in Auburn Hills will also benefit from a few service extras that are currently in a test mode at the store.

Most visible is a blood pressure machine located in the pharmacy waiting area. In addition to reading blood pressure levels, the machine itself provides a lot of in formation. Blocks of advertising for certain OTC products are on the machine, as was a free flyer explaining cholesterol testing.

A vibrating beeper was available to pharmacy consumers waiting for prescriptions. Instead of having the customer wait at the pharmacy, the beeper allows consumers to walk freely around the store, hopefully shopping, until their prescription is ready. The vibration eliminates the annoying sounds of regular beepers and the need for using the public address system.

"It's still early to tell if we'll be rolling out these services. We're monitoring everything closely," said Browett.

Perhaps due to the computerized inventory flow, the merchandising of the H&BC area makes exceptionally good use of cross-merchandising opportunities and adjacencies.

In dental care, for instance, all the toothpaste brands are featured in one display with auxiliary mouthcare products and oral hygiene appliances.

During a store tour, Joe Antonini, chairman cited the eyecare area as another example of how the retailer merchandised all related products together. Alcon Labs and Bausch & Lomb, among the leading manufacturers of eyecare products, are both part of the merchandise flow program.

One new merchandising area for Kmart is a range of home care products designed for older customers. A display of Futuro canes, support bars and other products are featured in the aisle in front of the pharmacy. The merchandise flows into a display of knee wraps, footcare products and heating pads. This flow makes the adjacency from pharmacy (located on the right side corner of the store) less awkward where the department meets the main front aisle of the store.

Diet aids and diet foods such as Slim Fast are given similar treatment across the aisle from food and snacks. Here too, Kmart has taken advantage of cross-merchandising opportunities and uses pegs to display small blenders to use for the diet mixes.

H&BC products are also featured throughout the store where other types of cross-merchandising makes sense.

Most surprising, perhaps, is the addition of a display of Del's Naturistics bath products in the intimate apparel department. The display gives Kmart's intimate apparel a more upscale image. Naturistics also has a large display of its shampoos and soaps in the H&BC department.