Posner chain partners sales increase 123%

Drug Store News, Sept 30, 1991

Posner Chain Partners Sales Increase 123%

The market for ethnic color cosmetics has been picking up momentum in recent years due to the phenomenal growth of Posner, the recognized category leader.

As the adjacent chart illustrates, total sales of Posner cosmetics grew 50% in the past calendar year, and in those chains that made a commitment to merchandising a viable Posner department, sales soared an average 123%.

These tremendous increases are made even more noticeable by the fact that ethnic cosmetic sales grew by only 5% in total chain drug.

For years, chains have taken a somewhat half-hearted position in the category by placing sections in only their highest volume locations or by experimenting with various lines that do not have the experience, expertise or knowledge to build a long term relationship.

To benefit from the explosive growth available from ethnic cosmetics, many chains have taken advantage of the service and expertise that Posner can deliver to the planning and creation of a productive ethnic cosmetic department.

In several interviews with Drug Store News, ethnic product buyers describe the willingness of Posner to provide service, merchandising and planning assistance essential to understanding a category that is different from the general market.

The partnership results are dramatic. When proper assortments are placed in the correct stores, and quarterly promotions are displayed, sales per foot increased an average 122.8%.

Turns in the department averaged 3.81 and even with an increase in SKUs of 29%, the turn rate increased 28.4%

This kind of growth is available to all drug chains that acknowledge that ethnic cosmetics are different from general market, and that the best managed sections are a result of a partnership between retailer and Posner.

Ethnic's First Cosmetic

Skin Cream

Posner, long considered the innovator in ethnic cosmetics, has the industry's first cosmetic skin tone cream.

Now Posner has introduced Creme de Tone - the first ethnic cosmetic product that women can use under make-up, alone as a moisturizer, and as a night cream.

Multi-beneficial, "Creme de Tone" evens skin tones, and fades dark spots, while it moisturizes. Sunscreen has been added to help protect the skin against future development of discoloration due to sun exposure.

Posner is the first ethnic products manufacturer to extend their cosmetic make-up line into a companion line of skin care products.

Most general market cosmetic manufacturers have skin care lines as a natural extension of their core business. Revlon has both a color line and an extensive collection of skin care lines like Eterna, Moondrops and European Collagen Complex. Other companies like Clarion, Almay, Max Factor and Coty also have both color and skin care in chain drug cosmetic sections.

Cosmetic skin care brands have a fashion cachet which may be why 80% of white women now buy at least some of their skin care needs in cosmetic sections.

Until now, Black women haven't been given this same convenience option. Most mass drug stores merchandise ethnic skin care products in toiletries, next to hair care in their HBA aisles. This may not be the environment to motivate many fashion conscious woman.

Now Posner has "Creme de Tone" to give mass retailers a chance to fulfill the needs of their Black consumers.

"Creme de Tone" is available in three formulas (oily, normal & dry) in a 2 oz. tube at a suggested retail of $4.50.

Table : Posner Chain Partners Examples

Chains                       A         B         C         D
Total Store Count          164       490      1054      2400
Stores Stocking Posner     118       252       368       320
Posner Footage               4'        4'        4'        2.5'
# SKUs Year Ago            110        89       110        70
# SKUs Current             140       111       140        96
% Increase                  27.2%     24.7%     27.3%     37.1%
Sales Per Foot Increase    104.9%    265.8%     59.5%     61.1%
Promotion % To Total          18%       22%       16%       12%
Turn Rate Year Ago           2.7%      3.1%      2.5%      3.8%
Turn Rate Current            4.0%      3.9%      3.0%      4.3%
% Increase                  52.4%     25.8%     20.0%     15.7%

PHOTO : 1990 Ethnic Cosmetics Sales Growth