Sports medicine a winning choice for chain drug

Drug Store News, Sept 8, 1997 by Al Heller

The sports medicine market, estimated at $1.25 billion by the National Sporting Goods Association, is on a meteoric surge.

"It's hard to pinpoint any age group to target. Any type of person you can think of uses these products," said Mary Ann Largen, R.Ph., director of health services at a six-store Drug Emporium franchise in Charlotte, N.C., which has installed high-identity sports medicine departments in three of its stores.

Indeed, Largen believes that Med Emporium [the franchise group's durable medical equipment division] will drive Drug Emporium in the future. "Because we're assaulted by combos and mass merchants, and people can buy traditional drug store products just about anywhere, we know in our group that we have to find different niches to survive. DME as a niche isn't an easy-entry area, and, once we achieve, it'll be difficult for a lot of competitors to move in on us," Largen said.

The strategy is quickly winning the retail group customers from other drug stores. "Some of our best referrals for sports medicine customers are from pharmacists elsewhere because their stores don't have these products to meet people's needs," said Largen. "Bandage users become increasingly productive customers. If someone comes in to get a special back or carpal tunnel brace, most will also have their analgesic prescription filled. It's a one-stop shopping desire because we're all more time-starved than money-starved."

Drug Emporium's Med Emporium venture will reach nearly $1 million in sales in 1997, up from $250,000 in 1996, Largen said.

On a national basis, muscle/body support devices posted $185.4 million in sales in food-drug-mass outlets during the 52 weeks ended July 20, 1997, reports Information Resources Inc. That's a 4.3 percent dollar gain achieved on a 5.7 percent rise in units, to nearly 25 million.

However, advances were far from equal across the board. Drug copped a vast majority of the business, with $132.1 million in sales, but lagged badly in growth with a mere 0.1 percent uptick. Mass merchants registered $38 million in sales on a 17.8 percent dollar rise. Food stores stretched their category sales by 12.8 percent to $15.3 million.

None of these figures address sales of the true high-end braces, collars and other devices, which generally accrue to orthopedists, physical therapists, chiropractors, hospitals and home healthcare providers, as well as sales posted by sporting goods chains.

"It's time for drug stores to get more serious about this, whether it's a knee brace, carpal tunnel or another application," urged Curt Mueller, president of Mueller Sports Medicine, which sells into Walgreens and is seeking to build off its following among college teams and sporting goods stores. "The healthcare business in sports medicine is so phenomenal that drug chains are leaving money on the table if they don't."

Indeed, sources say drug chains earn 32 percent to 50 percent margins in this category, depending on the product. They note also that sporting goods retailers generate $300 per square foot from basic departments up to $600 at sports medicine shopping destinations.

No longer just for athletes

"Twenty-five years ago, consumers never heard of a sports doctor. Now, the big thing in California [where many trends are born] is to have a mobile phone, belong to a health club and visit a sports medicine clinic," Mueller added.

"Consumers are so educated now they can tell the difference in store between inferior and superior quality products. They can open a clamshell and know because they've played sports in school or went to a clinic.

"Wellness is a mission," said Herb Raschka, vice president of consumer health products at Mueller. "I would have these products near herbs and vitamins because people who work out also buy those." Mueller emphasizes its Velcro[R] and lace-up ankle brace, which retails between $15 and $20, and a wrap-around knee brace at $30 to $35.

Meanwhile, Becton-Dickinson leads the category with a 32.2 percent sales share in its Ace brand and a 24.1 percent share in its Bauer and Black brand, according to IRI; one brand has a fitness position and the other is more remedial. Yet Sal Mauceri, business director, said the company is moving to "redefine our category ... We have launched a number of unique products to provide relief from some debilitating conditions, such as carpal tunnel syndrome and arthritis.

At Futuro, the category's No. 2 brand with a 23.8 percent share, powered in part by its support hose, vice president of marketing J.D. Weir agreed that "the vast majority of consumption in this category is for people who want to stay active. Sports medicine is a misnomer. Sports is a segment, and sports overstates or misjudges the need. Retailers need to understand that these products are for people in their everyday lives, and extreme specialty items don't meet as wide a need as stores want."

Futuro repositioned its brand more than a year ago with packages that show people in active, everyday situations. It advertises aggressively and runs a pharmacist training program to help raise the category's profile. "The category has been undermarketed in the past," said Weir. "Products have looked generic on the shelf. Approximately one quarter of households use braces, but 50 percent could, based on their needs; only less than 5 percent use support hose for varicose veins or weak circulation, but about 1-in-5 could."