GM set to move into high gear; greeting cards and one-time-use cameras will fuel category

Drug Store News, Jan 9, 1995 by Allene Symons

Bright spots in stationery

Drug stores continue to be in a battle with office products superstores, mass merchandisers and warehouse clubs for stationery sales, especially during back-to-school. That trend won't change in 1995, but as some stationery sales slip away, drug chains are discovering other opportunities.

Craft sales--of both kits and accessories--are up in drug chains, and many retailers are increasing the space they devote to the category, even as they decrease the space for office supplies.

Recent product introductions, like new delivery systems for glitter to decrease the mess, impulse-level price points and good margins contribute to the allure of the segment.

In back-to-school, the key for 1995 is simple: Get kids (their time, their lockers and their notebooks) organized, satisfy their needs and add value. Planners targeted for juveniles continue to be big business, and at least one major manufacturer will launch a major promotion targeted at juveniles in 1995.

Organizer sales to the adult population also continue to grow, and drug chains are hitting their stride in that category and grabbing their piece of that pie, according to manufacturers.

High-powered TV ads starring the indomitable Energizer Bunny and Durcell's hip animated characters will continue to drive battery sales this year. The ad campaigns rise to the level of entertainment with clever twists to keep even channel surfers watching.

The effect of the battery advertising wars is to keep consumers top of mind about buying plenty of batteries to keep on hand, especially the highly consumable AA, AAA and other popular multipack alkalines purchased for use in toys and portable entertainment devices.

Stationery, greeting cards, batteries and photo are just a part of the general merchandise picture. GM is largely an impulse-driven category, whether it is a four-pack of AA batteries, hosiery or a magazine. In 1995, look for even more corecategory traffic builders to get consumers into the store, where neighborhood convenience gives drug chains an edge.

Market drivers

* A graying population driving overall greeting card consumption with older female consumers as the most frequent card buyers.

* Alternative greeting cards hitting key market segments from baby boomers to ethnic consumers.

* Female shoppers discovering one-time-use cameras as an inexpensive way to capture and share photo memories.

* The expansion of in-store photo finishing labs enhancing the service image in drug chains and helping to create a retail photo destination.

* Craft kits and supplies providing a bright spot as drug chains battle for back-to-school business.

* Working women and students continuing to need tools to organize their lives, fueling organizer sales.