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Insight of the Day: Growth Opportunities for Health and Beauty Care Revenue in Grocery Stores

A recent study by Acosta Group reveals a missed opportunity for grocery stores to increase revenue from health and beauty care (HBC) and general merchandise (GM) products.

Key Findings:

  • Most shoppers skip HBC/GM aisles: Nearly 70% of surveyed grocery shoppers don't visit the HBC or GM sections in their usual grocery stores.

  • Preference for other channels: These shoppers prefer to buy HBC/GM products from mass merchandisers, online retailers, or drugstores.

  • Price and selection matter: The top reasons for choosing a retailer for HBC/GM purchases are low prices and a wide product selection.

  • Negative perception of grocery prices: 48% of shoppers avoid buying HBC/GM at grocery stores due to perceived high prices and poor promotions.

Strategies for Grocery Stores:

  • Overcome price perception: Grocers need to highlight their competitive prices and promotions to change consumer perception.

  • Focus on gateway categories: Prioritize promoting and improving the top 10 "gateway categories" that represent the majority of HBC/GM sales in grocery stores.

  • Communicate value: Effectively communicate the value proposition of buying HBC/GM products at grocery stores, emphasizing convenience and potential savings.

  • Improve product selection: Expand the variety of HBC/GM products and brands to meet consumer demand and offer a wider selection than competitors.

  • Offer targeted promotions: Implement targeted promotions and discounts to entice shoppers to explore HBC/GM aisles and make impulse purchases.

Additional Tips:

  • Highlight convenience: Emphasize the convenience of one-stop shopping for both groceries and HBC/GM needs.

  • Create attractive displays: Design visually appealing displays and endcap placements to draw attention to HBC/GM products.

  • Train staff on product knowledge: Ensure staff can answer questions and provide recommendations on HBC/GM items.

  • Leverage loyalty programs: Reward customers for purchasing HBC/GM products through loyalty programs and personalized offers.

By implementing these strategies, grocery stores can potentially c

apture a significant portion of the HBC/GM market and increase overall revenue.

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