Microwavables' sales popping - snack foods at drugstores and discount stores - includes related article - Food Merchandising

Discount Store News, Feb 20, 1995

`Zappable' snacks heat up at discount stores, drug chains

When Bradlees opened its sprawling new five-story store in Manhattan, shoppers were pleasantly surprised to find an array of snack foods on the basement floor.

The mix included microwavables such as popcorn, pasta and soups. Bradlees advertises its food items on a page of its circular underneath bakeware and cookware.

"Many people are coming in and buying an item to microwave in their offices," said the store manager.

Bradlees devotes half of its basement floor to food items including walnuts, baking chips from Mrs. Fields, Domino sugar, cooking oil, spices, peanut butter and holiday promotional tins from Houston Foods.

At Ames Department Stores' new prototype in Mt. Pocono, Pa., snack foods are a major department easily accessed from the new zig-zag layout. Microwavables such as popcorn and spaghetti are available.

Wal-Mart's first store in Long Island, N.Y., even features microwaveable packaged dinners. Wal-Mart is apparently learning more about food merchandising from its Wal-Mart Supercenters.

The same phenomenon is happening at several of the nation's largest drug chains. Based on the success of items such as canned sauces, snacks and baked goods, retailers are delving into microwaveable products. At the same time, convenience stores and even some supermarkets are reducing their assortments, leaving opportunity for mass retailers.

"Microwavables have been slow to take off, but we are getting a good following," said a manager of a CVS unit in New Providence, N.J.

CVS advertises its microwavables frequently. For example, during the holidays, the chain promoted Act II Popcorn priced at 89 cents. The chain is adding Act II's low-fat popcorn, too. The firm also has new flavored caramel glaze.

Keystone Drugs planograms microwave sauces and soups into its food set, according to vice president of merchandising Marty Rosenstein. The products are positioned between spices and diet drink mix.

Another leading drugstore chain has been installing fixtures of Lipton soups and Noodles and Sauce that are suitable for microwaving.

"We are doing a good job selling the Lipton Noodles and Sauces on promotions or as an impulse purchase," a source for the chain said.

"Picture this ... you are getting a prescription filled and see these sauces and you realize you can make a quick dinner that night without making a special trip to the supermarket. We find working women like it," he said.

Research reveals that packaged goods sales are up to $1 billion in discount stores and $743 million in drugstores.