Acosta Finds the Health of Health & Beauty Care in Grocery is on the Mend

New Research Reveals Reversing Trend in Behavior Among ‘VIP’ Shoppers

JACKSONVILLE, Fla.–(BUSINESS WIRE)–After years on the decline, the health of Health & Beauty Care (HBC)
sales at grocery stores is showing signs of life, according to a new
research study from Acosta.
Grocery stores only capture about 18 percent, or $15 billion, of the
staggering $84 billion annual spend in the HBC category, but Acosta’s Health
of Health & Beauty Care in the Grocery Channel
Hot Topic Report
signals an emerging trend reversal with more consumers purchasing HBC
products during routine grocery shopping trips instead of in other
channels.

“Health & Beauty Care represents a significant revenue opportunity
across the board, and grocery stores are seeing an increasingly larger
share of those dollars. There’s no question that the health of HBC at
grocery is improving,” said Colin Stewart, Senior Vice President,
Acosta. “With consumers frequenting grocery stores eight or more times
per month, the opportunity is ripe for grocery retailers to capture
those shoppers in store and convert them into ‘VIP’ HBC shoppers.”

Acosta’s Health of Health & Beauty Care in the Grocery Channel Hot
Topic Report revealed:

Shoppers are gravitating to grocery to make HBC purchases. Shoppers
are changing their behavior and are looking beyond drug stores and mass
merchandisers for health and beauty products.

  • Fifty-three percent of shoppers are buying HBC products in their local
    grocery stores.
  • Eighteen percent of shoppers are buying more HBC items in the grocery
    store than they were one year ago.
  • HBC is growing at a rate of 3.4 percent, outpacing total store growth
    of 1.9 percent.

It pays to appeal to VIP HBC shoppers. HBC grocery shoppers are
the biggest spenders in the store, putting them at the top of the
priority list for retailers.

  • The HBC shopper typically spends more than double at the store with an
    average basket of $82.37 versus an average basket of $38.74 for
    non-HBC shoppers.
  • Top performing retailers convert 21 percent more HBC shoppers than
    bottom performers (59 percent vs. 38 percent).
  • Shoppers cite more promotions (69%), better selection (60%) and better
    aisle organization (45%) as the top three factors that would encourage
    them to buy more HBC in the grocery store.

Competition for HBC shoppers abounds. Beyond brick and mortar
drug store chains and mass merchandisers, online retailers are another
force competing with grocery stores to attract highly lucrative HBC
shoppers.

  • One-third of U.S. shoppers buying HBC items online plan to make more
    online purchases in the coming year. Almost half of Millennial
    shoppers buying HBC items online agree.
  • Forty percent of U.S. shoppers buying HBC online are using Amazon and
    mass merchant websites.

“Facing fierce competition, retailers must craft tailored strategies to
appeal to and convert these valuable HBC shoppers. Matching these
strategies — from assortment to pricing and in-store merchandising —
with the top HBC categories that account for the majority of sales will
be a winning combination,” concluded Stewart.

The Health of Health & Beauty Care in the Grocery Channel was
completed using research conducted by Acosta, as well as the company’s
experience working with the nation’s largest CPG manufacturers and
retailers. To access the full report, visit www.acosta.com/hottopicreports.

About Acosta

Acosta
is the sales and marketing powerhouse behind most of the trusted brands
seen in stores every day. The company provides a range of outsourced
sales, marketing and retail merchandising services throughout the U.S.
and Canada. For more than 85 years, Acosta has led the industry in
helping consumer packaged goods companies move products off shelves and
into shoppers’ baskets. For more information, visit www.acosta.com.

Contacts

Vault Communications
Pamela Caruolo, 610-455-2746
pcaruolo@vaultcommunications.com