Drug stores chosen by 22% percent for fragrances

Drug Store News, June 24, 1991

Drug stores chosen by 22% for fragrances

For drug store operators, the good news is that 22 percent of fragrance users buy their scents "most often" in drug stores. Of this group, 13 percent frequent conventional drug stores such as Walgreens and Eckerd, and 9 percent use deep discounters such as Drug Emporium.

Not surprisingly, the strongest competition for fragrance sales is coming from department stores such as Macy's and Nordstrom's, Gallup found. However, discounters such as Kmart and WalMart, and direct marketers Avon and Mary Kay also have significant followings: 14 percent said they buy their fragrances "most often" at discount chains and 10 percent from door-to-door reps.

According to Gallup, all drug stores get the majority of their "most often" fragrance purchases from women 18-24 (27 percent) and 50 and older (26 percent).

However, department stores still get more "most often" citations for fragrance purchases than any other trade class. For example, 46 percent of 18- to 24-year-old fragrance users said they follow their noses "most often" in department stores; 47 percent of 25- to 34-year-olds said this, as did half of 35- to 49-year-old fragrance users and 38 percent of the 50 and older group.

The department store's success at cultivating fragrance shoppers may not be entirely due to their merchandising or servicing strategies. Most prestige fragrances are only available in department stores, so the fragrance industry's selective distribution system is probably more the reason.

As drug stores continue to expand their assortment of premium brands and as mass market manufacturers commit more advertising dollars to support brands like Charlie, Lady Stetson and Vanderbilt, the drug store share of fragrance sales should be able to rise, particularly since department stores are going through troubled times.

But if drug stores are to capture more fragrance shoppers, this is the time to act, by broadening product assortments, adding merchandising touches reminiscent of department stores, managing prices to create a good price/value image and by supplying fragrance customers with as much personalized service as possible.

Clearly, drug stores could do better in courting fragrance shoppers, Gallup findings indicate. Just 15 percent of the drug store "always shoppers are women 25 to 34 - less than one expected since 22 percent of fragrance users are in this age group.

The bright side is that only 10 percent of the drug store "never shoppers" for fragrances are 18 to 24, as are 15 percent of the "rarely shoppers."

Since 32 percent of people who "never" buy fragrances in drug stores are 35 to 49, and 27 percent of fragrance users are in this age group, it appears as if drug stores aren't getting their fair share of this crowd. Reinforcing this notion, just 21 percent of drug store "always shoppers" are 35-49, yet this age group accounts for 27 percent of all fragrance purchases.

Drug stores have a lot of potential to develop fragrance sales with older customers. The picture now, Gallup findings show, has 70 percent of fragrance users aged 35-49 "rarely or never" shopping this trade class for scents. Similarly, 67 percent of users 25 to 34 and ... percent of users 50 and older said this.

The younger shopping group of 18 to 24 year olds had 54 percent saying they "rarely or never" shop drug stores for fragrances.

On the flip side, Gallup found that an overall 12 percent of fragrance users say they "always" shop drug stores for fragrances. That is true for 8 percent of the 25-34 crowd, 9% of the 35-49 group and 17 percent of the 50 and older bracket.

The benefits that turn some women into "always and sometimes" drug store shoppers for fragrances are price (44 percent) and convenience (32 percent).

One-third of all women who rarely or seldom buy fragrances in drug stores cite lack of brands they prefer.

As for women who buy fragrances for men, 6 percent said Old Spice is the brand they buy most often. But there is also evidence that women may be finding other attractive alternative fragrances for men from direct marketers: 4 percent of respondents said the fragrance they bought "most often" for men was an Avon brand.

Table : Why women buy

           fragrances
         in drug stores
Good/reasonable prices      44%
Convenient to home/office   32

... or rarely or never do

Do not carry my brands      34%
Prices are too high         12

Do not stock the better department store brands 10

Base: Women who rarely or never buy their fragrances in conventional or deep discount drug stores.

Source: Drug Store News/Gallup 1991 Consumer Survey.

Table : How often women shop drug stores for fragrances

Always Sometimes Rarely Never

All fragrance users

who shop drug stores    12%        21%       26%     40%
18-24                   12         29        26      28
25-34                    8         24        27      40
35-49                    9         21        23      47
50 and older            17         15        27      40

Base: Women who have used a perfume or cologne in the past four weeks. Source: Drug Store News/Gallup 1991 Consumer Survey.