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Drug Store News, March 5, 1990

Chain buyers bet on basics, avoid licenses, at B-T-S Show

NEW YORK - "Basics," benefiting from fashion colors and upgrades, looked better than ever to drug chain buyers at last month's Back-to-School Show here.

Many buyers said they will stick closely to basics - avoiding, for example, licenses - in notebooks, binders, desk items and writing instruments, as the safest route to strong year-round sales gains in this 50-plus margin, high-turning category.

Besides, as more lines have been upgraded, basics have gotten more pizazz. And consumers will pay a higher price if greater value is apparent.

Pentech was a notable example in writing instruments of a "basic" line with added sizzle. Its jazzed-up packaging, multi-pack merchandising and strong assortment of SKUs did well for chains last year.

"Their packaging is just exquisite. I think they've outdone themselves this year," said Burt Swerdin, buyer at Affiliated/Associated Drug Stores. Swerdin has more than doubled, to 20-plus, the assortment of Pentech markers, high-lighters, pens, refills and pencils that he will be recommending to members.

Genovese is one chain that had success last year using Pentech items on end panels at back-to-school and tax time. Pilot's V-5 and V-7 were other strong performers among writing instruments at Genovese, said buyer Cynthia Stahley-Zuniga.

Another company that upgraded its basic products was Stuart Hall, which put fashion colors and designs on its commodity notebooks without raising the price in its Colorline. Its Lisa Frank-designed portfolios and notebooks are expected to be very popular among school children.

"It's interesting. I think I'm going to try... pieces of it," said Peoples buyer Cliff Gratige.

Buyers also expressed interest in upgraded binders, such as Mead's Ultima at $9-plus retail, and higher-end back packs. The key is vendor advertising, and limiting items that can't be rolled into the year-round planogram.

Genovese's Stahley-Zuniga looks for back-to-school items that can go into Genovese's basic 56-foot planogram after the season without being heavily marked down.

Mead's classic Trapper Keeper binder is a perennial staple. Yet, Genovese is willing to take on limited inventory in higher-priced, upgraded binders if if they are advertised on television, which chain execs anticipate would creating a demand for them.

"As long as you don't overstock it, I think there are some opportunities there," said Gratige of notebook and binder upgrades.

He sees opportunities in Artistic's double-wire wire-bound notebooks from $3.99 to $4.99, and K&M's Smart Pockets binder with Velcro clasp at $9.99.

Knapsacks are among the items that will make many drug chains' seasonal aisles look like Broadway this fall, with their neon fashion designs.

Swerdin expects neon, primitive prints and denim from ADI, Shalam Imports and Bag Bazaar, priced from $5.99 to $16.00, to score points.

Arts and crafts may be to the 1990s what home office was to the 1980s. Buyers see strong potential for pre-school items in the age of working mothers and day care. Genovese will be among chains testing Mead's "Safari" pre-school program. Safari's advantage is in offering a display that can be a focal point in the store. At least one buyer, though, felt Safari items are too oriented to female children. Stuart Hall's Sesame Street, while occupying a less visible display, the buyer felt, is more appealing to both sexes.

Mead was also praised for introducing a waterfall rack for otherwise hard-to-handle loose poster board.

Buyers have been more comfortable with low-end home office items, such as W.T. Rogers, with price points of under $4.

Swerdin said he will cherrypick items from Eldon and Rubbermaid. "We are pushing Rubbermaid's 'Study Stuff' line for the kids," for which Swerdin anticipates heavy ad support, he said.