H&BC section puts on a good face - Kmart's Health and Beauty Care departments - Kmart Power Merchandising

Discount Store News, Feb 21, 1994

Cosmetic changes in the health & beauty care department at Kmart have given the retailer a distinct advantage as it goes forward with its renewal initiatives.

There are dramatic differences in the older stores vs. the refurbished stores.

"Highlighting cosmetics by putting it in its own section with fragrances and bath has created a more consumer-friendly environment," said Chuck Kantor, vice president, national accounts, Maybelline.

"There is a more comfortable environment in the new Kmarts," said Jim Fisher, national sales manager, Clairol. "This is mostly due to upgraded fixturing and department design which lends itself to a more shopable environment."

Consumers seem to agree. More than 20% of shoppers at remodeled stores rated the H & BC department as a "nine" on a scale of 1 to 9, with "nine" indicating it was a "great place to shop" and "one" indicating that they'd "skip" shopping for the product. That was the highest percentage of satisfied shoppers in all 15 merchandise categories surveyed for DSN by Chicago-based Leo J. Shapiro & Associates.

This can be attributed to the discounter's attention to singage, upgraded fixturing and higher-end fragrance and cosmetic brands, once only found in department stores. "I was so impressed with the great looks and exciting visuals of the department that we had to dress up our stocks because everything else looked so good," said Donald Baucher, president, Perfumer's Workshop.

"There has been improvement over the last year, year and a half. They've been more forward-thinking and aggressive in tying into more vendor promotion," said Bob Doyle, group product manager for the Bic Corporation.

Other manufacturers agreed, but with some reservations. "It's a strong department for Kmart but it could be stronger. I don't know if they promote as effectively as they could," said Bill Cherella, vice president, sales, Tsamura International. "However, I'm very encouraged by the restructuring and enpowerment of the people. That's what Wal-Mart and Target do. They have a good mix of young, aggressive talent and some disciplined and seasoned pros, and it works for them."

Technology has also played a major role in the improvement. Kmart has been actively involved in both EDI and quick response, and as of April '94, the entire cosmetics department will be automatically replenished by computer.

"Our reps are currently in the stores writing orders," said Chuck Kantor, vice president, national accounts, Maybelline. "Now the new system will be responsible for all the items going to the peg wall," he noted.

In addition, this will allow the retailer to keep an eye on its inventory and, according to several industry sources, reduce the total sku counts in both its hard lines and soft lines departments. As one store manager put it, "We don't need to have a travel size, a 4.5 oz., a 6 oz. and an 8.5 oz. of toothpaste. We can narrow it down and still be effective in the department."