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Drug Store News, Feb 19, 1990 by Susan Ball

Chain drug buyers seek B-T-S sparkle

Competition will bring upgrades to the forefront

Mass merchandisers are turning up the competitive heat at back-to-school time, motivating drug chain buyers to scour the Back-To-School Show for upgraded, eye-catching products that will give their stationery departments an edge during that crucial August-September season.

Heightened back-to-school competition means "there's a lot you have to `give away,' and you have to look elsewhere to make some dollars," said one drug chain buyer, reflecting a common view.

Consequently, buyers such as Andy Horn of Harco Drug supplement their basic school supplies mix with value-added items and upgrades "where you can make a little margin." For example, 10-pack pencils in pastel colors did well last fall at Harco, alongside basic pencil multipacks. For the coming back-to-school season, Horn plans to add upgraded dictionaries and thesauruses to the promotional reference items used last season as a traffic draw. And low-end backpacks and bags, about $3.99-$4.99 on promotion, may be supplemented with upgrade packs and bags in the $7.99-$8.99 range this season, because "X number of people are willing to buy a better product," Horn reasons.

Iowa-based Hy-Vee Food and Drugtown takes a similar route, looking to better-margin ancillary items such as locker mirrors to enhance their back-to-school business, said vp John Susich.

Even with increased competition, chain buyers see the stationery department as a steady year-round profit center, with back-to-school and, secondarily, tax time and second semester, providing peak opportunities for advertising and sales. Many chains also include a few stationery department items regularly in ads throughout the year, "to keep the category in front of the consumer."

Along with basic school supplies, buyers look for fashion products to enhance their back-to-school mix, even though some report that demand for trendy items slows down sharply after September.

"We'll be changing our stationery planogram this spring," said buyer Mark Blandford of Rite Aid. "We'll be looking for new ideas and products to update the department--add a little more excitement to it--but we'll continue to stress the basics. You have to have some pizzazz in the aisle year-round, without going overboard. The real high-fashion or licensed stuff tends to drop off quickly after back-to-school," Blandford said.

Burt Swerdin, Affiliated/Associated merchandise manager, expects neons and licenses, especially Garfield and Disney, to be strong this fall. Harco's Horn, noting that Harco is "less fashion-oriented than many chains," nevertheless expects the Teenage Mutant Ninja Turtle license in themebooks and portfolios to be popular next back-to-school season, based on the license's popularity this past Christmas in the chain's markets. Neon colors in items like poster board, construction paper and even backpacks also look promising, he added.

In addition, some new products featuring study aids are anticipated to appeal especially to parents buying school supplies for their offspring. (For example, Avery is introducing its Factfinders line, including quicks reference guides aimed at helping students with writing skills, spelling, geography and basic algebra. Also, Esselte is including Homework Survival Kits in such products as its Pendaflex hanging file folders and Oxford portable file boxes, targeting high school and college students. The kit includes a Student Survival Guide, written by The College Board, that provides tips on setting good study and organizational habits.)