Social expressions

Drug Store News, May 20, 1996

Greeting cards continued to bolster front-end sales in drug chains in 1995, growing around 2.7 percent in dollars and around 1.5 percent in units, according to industry estimates.

The "nesting" and home entertainment trend spurred sales of all kinds of social expressions products, from cards, party goods and gift wrap to items like helium balloons and decorative and seasonal outdoor flags -- all adding up to more ways than ever for consumers to socialize, communicate and express their tastes.

Continuing a trend of recent years, everyday cards outsold seasonal cards almost two to one in dollars (around a billion dollars vs. around $600 million) in the drug channel, although everyday and seasonal both sold around the same number of units (est. 671 million vs. 686 million), according to Hallmark research.

The higher dollar sales in everyday cards reflects the quantities consumers need for seasonal cards when shoppers often look for value, appropriate designs and especially at Christmas for by-the-box pricing.

Sometimes price isn't an issue

On the other hand, everyday cards for special people and special occasions like birthdays, anniversaries and weddings command higher individual card prices. When a browser finds the right card for the right person, price is rarely an issue. High production-quality cards with fine finishings, even lace and other embellishments. helped boost the dollar sales in greeting cards again in 1995.

Non-occasion alternative cards have grown in recent years, especially in lines laced with plenty of humor like Shoe Box and Just My Style from American Greetings. This has expanded the year-round greeting card business as consumers look for cards to express thoughts not found on greeting cards until recently--cards directed to step-family relatives, cards for divorce, chemical abuse recovery and other cards for encouragement, as well as guy-to-guy and "girlfriend" cards humorously sympathizing about relationships diet and fitness struggles and the workplace.

Card companies have increased their demographic targeting of both everyday and seasonal cards. The growth of alternative card lines like Shoe Box and Just My Style is fueled by their popularity. especially with baby boomers and young card givers.

New lines like AG's Coffeehouse cards address Generation X as well as boomer shoppers with graphics and messages in currently popular graphic, motif and typeface styles.

Ethnic card lines continue to grow and make a statement about a store's interest in serving its customer base. Cards have also expanded into card-as-art and collectibles, like Hallmark's gallery-like Vekerke black and white photo card line, or AG's new Elegant Treasured Antiques line.

The rich assortment of angel-motif cards from both Hallmark and American Greetings reflects the nation's fascination with angels. Licenses continue to give cards social currency, like Dilbert for Hallmark, Nickelodeon for CreataCard and for both manufacturers' new on-line services.

The personalized card kiosks introduced a couple of years ago, CreataCard (AG) and Touch Screen Greetings (Hallmark Ambassador) took a turn toward the Internet in 1995, when last spring Hallmark announced that it was cutting back on Touch Screen Greetings but heading toward more on-line services. A few months later CreataCard also cut back its installed base but is still in many higher-volume stores.

Many social expressions buyers say that unless you can put up a good assortment, just go for a convenience gift wrap and party goods offering.

But gift wrap is a must-have-it category for drug chains, since this retail channel is a source of fast gifts like a box of chocolates, a photo frame with an enlargement, or a beauty or fragrance gift.

Gift bags are strong

Gift bags continued to be very strong in wrap in 1995, along with finishings like shredded and mylar stuffing, colored tissues and tie-on accessories with themes to match the gift bag. Roll wrap and flat wrap still outsell gift bags overall, but gift bags are growing, and as a convenience item they play well to the drug channel's convenience strength.

Party goods work best in larger drug chains, report most buyers. If they don't have space or the competition is too steep, the party goods display is likely to be a convenience spinner and a few feet of popular children's and adult party basics, or a freestanding in-and-out display like American Greetings' seasonal supertrays. A fuller offering such as AG's full assortment or Hallmark/Ambassador's Party Express is found in larger chains.

Product for kids parties is the lion's share of sales. but the adult party goods segment enjoyed brisker business than usual in the past year thanks to new designs from leading manufacturers purchased largely by busy two-career families entertaining -- and with oldest baby boomers turning 50 this year, in 1996 there are likely to be more adult milestone parties with corresponding party goods, gift wrap and greeting card sales.