Your SlideShare is downloading. ×
0
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Drug channel overview
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Drug channel overview

3,563

Published on

El mercado de farmacias en Estados Unidos està concentrado en un 84% en 3 grandes cadenas, Nielsen estudia cuales son las categorias de mayor crecimiento. El tabaco es una de las dos categorias de …

El mercado de farmacias en Estados Unidos està concentrado en un 84% en 3 grandes cadenas, Nielsen estudia cuales son las categorias de mayor crecimiento. El tabaco es una de las dos categorias de mayor crecimiento en espacio de gòndola y los contraceptivos la de mayor crecimiento en venta.

1 Comment
1 Like
Statistics
Notes
  • El mercado de farmacias en Estados Unidos està concentrado en un 84% en 3 grandes cadenas, Nielsen estudia cuales son las categorias de mayor crecimiento. El tabaco es una de las dos categorias de mayor crecimiento en espacio de gòndola y los contraceptivos la de mayor crecimiento en venta.
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
No Downloads
Views
Total Views
3,563
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
95
Comments
1
Likes
1
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide
  • This slide uses total Retailer dollar volume. It includes non-UPC items.
  • Acculturated Hispanics & Asian Americans include only English-Speaking or Bilingual households.
  • Consider removing one of the channels & replacing with a key retailer.
  • New Product Opportunity: Pet Depilatories!
  • Transcript

    • 1. Nielsen Drug Channel Overview August, 2009 Tom Pirovano Jim Mansfield
    • 2. Questions Addressed
      • How big is the drug channel in the US?
      • Which demographic segments shop drug stores?
      • How do drug store purchase dynamics compare to other channels?
      • Which categories are strongest in drug stores?
      • How are drug store categories trending?
      • How are store brands performing in the drug channel?
      • How well does Walmart compete in HBC categories?
      Page
    • 3. How big is the drug channel in the US?
    • 4. Reported Dollar Volume By Channel Page Total Purchases (Including Non-UPC) Reported by Homescan Panelists Source: Homescan ® Channel Facts, CY’08
    • 5. Drug Store Dollars vs. Other Channels Page Source: Nielsen Strategic Planner and Scantrack Convenience Express Reflects only categories reported by Nielsen 52 Weeks Ending 6/13/09, Total US Excludes Rx
    • 6. Fewer Drug Stores – More Pharmacies Page U.S. Store Counts Source: Trade Dimensions® & TDLinx®, services of The Nielsen Company Fewer Drug Stores Due to a Closings of Independent Pharmacies
    • 7. QUIZ Question
      • The top 3 U.S. drug chains now represent what percent of total drug channels sales?
      Page Answer: Walgreens, CVS & Rite Aid generate 82% drug channel ACV Source: TDLinx, December, 2008
    • 8. Largest U.S. Drug Chains
      • $ Share of U.S. # of
      • Drug Chain Drug Channel Stores
      • Walgreens 35.7% 6,796
      • CVS/Caremark 31.5% 6,995
      • Rite Aid 14.8% 4,829
      • Duane Reade 1.1% 256
      • Marc Glassman 0.4% 44
      • Discount Drug Mart 0.3% 68
      • United Drug Co-Op 0.3% 313
      • Kinney Drugs 0.2% 88
      Page Source: TDLinx The top 3 drug chains generate 82% of Drug Channel ACV.
    • 9. Retailer Profile - Walgreens Page
      • 2009 Focus
      • Customer-Centric Retailing (CCR) format with fewer SKUs
      • CCR pilot now in 35 stores, 400 in Fall, 2009
      • Private Brands
      • www.wbrand.com – Walgreens Private Brand Site
      • Plans to reduce the # of PB Brands
      • Currently >100 Walgreens Brands
      • Take Care Clinics (in stores)
      • >330 Take Care Clinics – and growing
      • www.takecarehealthsystem.com
      • Recent News:
      • Now in all 50 states with new Alaska Store
      • In early stages of bringing liquor back to its stores
    • 10. Page Walgreens site dedicated to their private label: www.WBrand.com
    • 11. Retailer Profile - CVS
      • CVS Growth
      • 2004 – Acquired 1,200+ Eckerd stores
      • 2006 – Acquired 700 freestanding Osco & Savon stores
      • 2007 – Merged with Caremark (prescription benefits management)
      • 2009 – Acquired 541 Longs Drugs stores
      • Stores in 44 states
      • Claims to be #1 in prescriptions filled
      • Loyalty Card: >50 million ExtraCare members
      • Minute Clinics
      • Acquired Minute Clinic in 2006
      • 500 In-Store Clinics
      • Beauty 360
      • High-end beauty format launched in November, 2008
      • 4 stores in California, Connecticut, and Washington, DC
      Page www.CVS.com www.MinuteClinic.com www.Beauty360.com
    • 12. www.Beauty360.com from CVS Page
    • 13. Retailer Profile – Rite Aid
      • #1 drug chain on the East Coast, and third in the U.S.
      • In 31 States – East Coast & West Coast
      • 2007 – acquired 1,854 Brooks & Eckerd stores
      • Partnership with GNC – in select stores
      • Closing “under-performing” stores
      • Opening new stores on smaller scale
      • Loyalty Program: Rx Savings Card
      • No Premium Store Brands
      • Focused on SKU Optimization
      Page www.Riteaid.com
    • 14. Rite Aid’s “Living More” Card for Seniors
      • 20% off purchases on first Tuesday of month
      • 10% off purchase all other Tuesdays
      • 10% off Rite Aid Brand products every day
      • 10% off cash prescriptions every day
      Page
    • 15. QUIZ Question
      • Which major U.S. market (city) generates the most drug store sales relative to other channels?
      Page Answer: Cleveland – The drug represents 8.6% of sales in Cleveland vs. 3.8% for Total U.S. Source: Homescan Channel-Facts, 2008
    • 16. Drug Store Share of All-Outlet Sales Page Source: Homescan ® Channel Facts, CY’08 The drug channel is much stronger in Cleveland than in other markets.
    • 17. Which demographic segments shop drug stores?
    • 18. Household Ethnicity
      • Drug stores, dollar stores and C-stores all skew to African Americans
      • Distribution of Dollar Sales
      • Mass w/o Super
      • HH Ethnicity Drug Grocery Supers Centers Club Dollar Conv
      • Caucasians 76% 80% 75% 82% 75% 70% 73%
      • Non-Cauc 24% 20% 25% 18% 25% 30% 27%
      • African Amer 13% 9% 11% 10% 9% 20% 16%
      • Asian* 3% 3% 3% 1% 5% 1% 1%
      • Other Race 8% 8% 11% 7% 12% 8% 10%
      • Hispanic* 11% 11% 15% 9% 16% 11% 11%
      • *Acculturated Hispanics & Asian Americans
      Page Source: Homescan ® Account Shopper Profiler, CY’08
    • 19. Kids & Household Size
      • Drug stores and C-stores and skew to smaller households without kids
      • Distribution of Dollar Sales
      • Mass w/o Super
      • Kids/HH Size Drug Grocery Supers Centers Club Dollar Conv
      • No Kids < 18 71% 59% 52% 53% 58% 59% 67%
      • Any Kids < 18 29% 41% 48% 47% 42% 41% 33%
      • Any Kids < 6 10% 15% 20% 18% 17% 13% 10%
      • Any Kids 6-12 15% 22% 27% 27% 22% 23% 18%
      • Any Kids 13-17 14% 19% 21% 22% 20% 21% 7%
      • 1 Member 24% 17% 15% 14% 11% 20% 23%
      • 2 Members 38% 33% 29% 32% 35% 32% 37%
      • 3-4 Members 29% 36% 39% 38% 37% 33% 29%
      • 5+ Members 9% 14% 17% 16% 17% 15% 11%
      Page Source: Homescan ® Account Shopper Profiler, CY’08
    • 20. Household Income
      • Lower income households are more likely to shop drug stores, dollar stores, C-stores and Supercenters
      • Distribution of Dollar Sales
      • Mass w/o Super
      • HH Income Drug Grocery Supers Centers Club Dollar Conv
      • $100K+ 18% 23% 23% 15% 36% 8% 10%
      • $70K-99K 16% 18% 18% 16% 22% 10% 13%
      • $50K-69K 16% 17% 17% 18% 16% 13% 14%
      • $40K-49K 10% 9% 10% 11% 8% 10% 11%
      • $30K-39K 11% 10% 11% 12% 7% 13% 13%
      • $20K-29K 13% 11% 10% 13% 6% 18% 16%
      • <$20K 16% 12% 11% 15% 5% 27% 24%
      Page Source: Homescan ® Account Shopper Profiler, CY’08
    • 21. Age of Female Household Head Page
      • Drug stores skew to much older households
      • Age of Distribution of Dollar Sales
      • Female Mass w/o Super
      • HH Head Drug Grocery Super Centers Club Dollar Conv
      • Under 35 12% 17% 21% 22% 16% 13% 11%
      • 35-44 13% 17% 20% 19% 18% 17% 15%
      • 45-54 21% 23% 23% 22% 23% 23% 24%
      • 55+ 37% 27% 25% 26% 29% 34% 26%
      • 55-64 17% 14% 14% 15% 17% 19% 16%
      • 65+ 20% 13% 11% 11% 12% 15% 10%
      Source: Homescan ® Account Shopper Profiler, CY’08
    • 22. Spectra BehaviorScape Segmentation: Drug dollars skew to older households in urban areas Page Reference = United States; Base = Households; See Appendix for BehaviorStage/Lifestyle Descriptions Source: Spectra June 2009 Release/Nielsen Homescan Shopper Library (11/08) Dollars Index 120 - 149 = Dollars Index 150+ =
    • 23. Where you live plays a huge role in the channels where you shop Page Reference = United States; Base = Households; See Appendix for Lifestyle Descriptions Source: Spectra June 2009 Release/Nielsen Homescan Shopper Library (11/08) Dollars Index 120 - 149 = Dollars Index 150+ =
    • 24. How do drug store purchase dynamics compare to other channels?
    • 25. Using Purchase Dynamics to Drive Sales
      • 3 Key Components of All Sales Growth/Decline
      • Penetration
        • Are fewer households buying?
        • How can I get more households to buy?
      • Purchase Frequency
        • Are consumer buying less often?
        • How can I drive more frequent trips/purchases?
      • Purchase Size
        • Are shoppers spending less per trip?
        • How can I drive multiple units, larger pack sizes, or premium pricing?
      Page
    • 26. Channel Penetration Trends Vs. 1997
      • Percent of U.S. Households Shopping
      • U.S. Channel 2008 1997 Change
      • Drug Stores 81% 89% -8 Pts
      • Grocery 99% 100% -1 Point
      • Mass Merch w/Supers 95% 97% -2 Pts
      • Supercenters 68% 52% +16 Pts
      • Mass w/o Supers 79% 94% -15 Pts
      • Warehouse Clubs 50% 48% +2 Pts
      • Convenience Stores 40% 52% -12 Pts
      • Dollar Stores 64% 45% +19 Pts
      Page Source: Homescan ® Channel Facts, CY’08 Vs. CY’97
    • 27. Purchase Frequency Trends Vs. 1997
      • Avg Number of Shopping Trips Per Shopper Per Year
      • U.S. Channel 2008 1997 Change
      • All Outlets 159 198 -39 Trips
      • Drug Stores 14 16 -2 Trips
      • Grocery 59 87 -28 Trips
      • Mass Merch w/Supers 31 33 -2 Trips
      • Supercenters 26 13 +13 Trips
      • Mass w/o Supers 14 27 -13 Trips
      • Warehouse Clubs 11 9 +2 Trips
      • Convenience Stores 14 13 +1 Trip
      • Dollar Stores 13 8 +5 Trips
      Page Source: Homescan ® Channel Facts, CY’08 Vs. CY’97
    • 28. Purchase Size Trends Vs. 1997
      • Average Dollars Spent Per Trip (UPC-Coded)
      • U.S. Channel 2008 1997 Change
      • Total Outlets $38 $25 +$13
      • Drug Stores $20 $15 +$5
      • Grocery $31 $22 +$9
      • Mass Merch w/Supers $52 $29 +$23
      • Supercenters $58 $36 +$22
      • Mass w/o Supers $43 $28 +$15
      • Warehouse Clubs $89 $66 +$23
      • Convenience Stores $15 $7 +$8
      • Dollar Stores $12 $9 +$3
      Page Source: Homescan ® Channel Facts, CY’08 Vs. CY’97
    • 29. How are drug store categories performing?
      • Cross-Category Analysis Using Nielsen’s Strategic Planner Database
      • 52-Week Periods Ending 6/13/09
      • Total U.S. Drug Channel (stores with annual sales >$1MM)
      • Compared with FDM (Food/Drug/Mass Channels Including Walmart)
      • Product Sub-Categories Exclude Some Smaller or “All Other” Groups
    • 30. The drug channel shows healthy growth across most departments
      • 52-Week Change Share of
      • Nielsen-Defined Departments Drug $ Sales Vs Ygo FDM+WM
      • All Departments $43.4 Billion +5% 8.5%
      • Health & Beauty Aids $21.5 Billion +4% 34.6%
      • Dry Grocery $7.9 Billion +8% 4.1%
      • Non-Food Grocery $6.7 Billion +13% 11.3%
      • General Merchandise $3.6 Billion -5% 9.5%
      • Alcoholic Beverages $2.4 Billion +5% 11.1%
      • Dairy $0.6 Billion -7% 1.2%
      • Frozen Foods $0.4 Billion +12% 1.0%
      • Other Perishable $0.08 Billion +17% 0.2%
      Page Source: Nielsen Strategic Planner, 52 Weeks Ending 6/13/09, Total U.S.
    • 31. QUIZ Question
      • Do drug channel shoppers spend more on cold/allergy remedies or on cigarettes?
      Page Answer: They spend nearly twice as much on cigarettes than on cold/allergy remedies. Source: Nielsen Strategic Planner
    • 32. Top Categories in the Drug Channel
      • 52-Week Change Share of
      • Nielsen Category Drug $ Sales Vs Ygo FDM+WM
      • Cigarettes $2,963 MM +18% 36%
      • Cold/Allergy Remedies $1,599 MM +9% 46%
      • Nutritional Supplements $1,260 MM +8% 34%
      • Headache Remedies $965 MM +3% 36%
      • Chocolate Candy $894 MM +6% 22%
      • Office/School Supplies $699 MM +1% 15%
      • Face Cream & Lotions $692 MM +9% 37%
      • Non-Chocolate Candy $640 MM +11% 24%
      • Antacids $625 MM +0% 37%
      • Batteries $619 MM +2% 24%
      • Light Beer $599 MM +10% 10%
      Page Source: Nielsen Strategic Planner, 52 Weeks Ending 6/13/09, Total U.S. 6 of the top 11 drug store categories are non-HBC
    • 33. Top HBC Categories in the Drug Channel
      • 52-Week Change Share of
      • Nielsen Category Drug $ Sales Vs Ygo FDM+WM
      • Cold/Allergy Remedies $1,599 MM +9% 46%
      • Nutritional Supplements $1,260 MM +8% 34%
      • Headache Remedies $965 MM +3% 36%
      • Face Cream & Lotions $692 MM +9% 37%
      • Antacids $625 MM +0% 37%
      • Cosmetics - Eye Makeup $549 MM +8% 38%
      • Hair Coloring Products $549 MM +1% 36%
      • Cosmetics - Facial Makeup $504 MM +5% 39%
      • Laxatives $493 MM +5% 44%
      • Tooth Cleaners/Whiteners $433 MM +1% 21%
      • Shampoo $429 MM +1% 20%
      Page Source: Nielsen Strategic Planner, 52 Weeks Ending 6/13/09, Total U.S.
    • 34. Top Food Categories in the Drug Channel
      • 52-Week Change Share of
      • Nielsen Category Drug $ Sales Vs Ygo FDM+WM
      • Chocolate Candy $894 MM +6% 22%
      • Non-Chocolate Candy $640 MM +11% 24%
      • Light Beer $599 MM +10% 10%
      • Beer (Non-Light) $485 MM +1% 11%
      • Bottled Water $460 MM +3% 8%
      • Fresh Milk $426 MM -12% 3%
      • Chewing Gum $328 MM +10% 19%
      • Wine - Domestic Table $317 MM +14% 7%
      • Cola Regular $310 MM +6% 6%
      • Cola Diet $255 MM +6% 7%
      • Vodka $248 MM +5% 24%
      Page Source: Nielsen Strategic Planner, 52 Weeks Ending 6/13/09, Total U.S. 8 of the top 11 food categories are beverages
    • 35. Top Growth Categories in the Drug Channel
      • 52-Week Change Share of
      • Nielsen Category Drug $ Sales Vs Ygo FDM+WM
      • Pet Care $147 MM +67% 6.7%
      • Depilatories $84 MM +46% 44.7%
      • Peanut Butter $15 MM +43% 1.2%
      • Seasonal General Merch $21 MM +42% 15.1%
      • Dog & Cat Treats $39 MM +42% 2.5%
      • Natural Cheese $11 MM +39% 0.2%
      • Frozen Entrees - Italian $15 MM +37% 0.6%
      • Pizza - Frozen $47 MM +34% 1.2%
      • Desserts - Frozen $17 MM +30% 2.9%
      • Sliced Lunchmeat $13 MM +28% 0.3%
      • Tuna - Canned $19 MM +28% 1.5%
      Page Source: Nielsen Strategic Planner, 52 Weeks Ending 6/13/09, Total U.S. 8 of the top 11 growth categories are foods
    • 36. QUIZ Question
      • Which category has the highest share of sales in the drug channel vs. supermarkets & mass merchandisers?
      Page Answer: Contraceptives Drug channel generates 64% of F/D/M $ sales Source: Nielsen Strategic Planner
    • 37. Categories With Strong Sales in the Drug Channel
      • 52-Week Change Share of
      • Nielsen Category Drug $ Sales Vs Ygo FDM+WM
      • Contraceptives $315 MM +17% 64%
      • Pregnancy/Infertility Tests $152 MM +1% 63%
      • Hair Growth Products $54 MM +7% 61%
      • First Aid Gauze & Tape $132 MM +0% 57%
      • Breath Fresheners $4 MM +9% 57%
      • Cough/Cold Throat Sprays $18 MM -4% 51%
      • Nasal Products $298 MM +3% 50%
      • Anti-Smoking Products $366 MM +1% 49%
      • Manicure Needs $117 MM +3% 49%
      • Cough Syrups/Tabs $332 MM +6% 48%
      • Vitamins/Tonics (Liq/Pwdr) $21 MM +11% 48%
      Page Source: Nielsen Strategic Planner, 52 Weeks Ending 6/13/09, Total U.S. As expected, categories with high drug share are almost all HBC.
    • 38. HBC categories with strong sales OUTSIDE the drug channel
      • 52-Week Change Share of
      • Nielsen Category Drug $ Sales Vs Ygo FDM+WM
      • Baby & Nursing Accs $37 MM +0% 3.6%
      • Baby Bottles & Nipples $20 MM -1% 9.2%
      • Diet Aids-Complete Nutr $41 MM -7% 9.3%
      • Baby Care Bathsoap $21 MM +9% 16.1%
      • Feminine Deodorant Sprays $6 MM -10% 16.4%
      • Personal Grooming Sponges $21 MM +9% 18.3%
      • Deodorant-Aerosol $25 MM -0% 19.1%
      • Deodorant-Stick/Solid $289 MM +8% 19.4%
      • Cotton/Cotton Swabs $76 MM +4% 19.6%
      • Vitamins - Children Chewable $32 MM +9% 19.8%
      • Shampoo $429 MM +1% 20.2%
      Page Source: Nielsen Strategic Planner, 52 Weeks Ending 6/13/09, Total U.S. These categories may be opportunities for drug retailers
    • 39. QUIZ Question
      • Which 2 categories show the most growth for drug store share of FDM?
      Page Answer: Tobacco & Feminine Hygiene (drug channel is up 3.4 share points in both categories) Source: Nielsen Strategic Planner
    • 40. The drug channel has grown share across many high-volume categories.
      • Drug Dollar Share of Share
      • Nielsen Category Food/Drug/Mass+WM Pt Chg
      • Tobacco & Accessories 34% +3.4 pts
      • Feminine Hygiene 44% +3.4 pts
      • Grooming Aids 36% +2.3 pts
      • Fragrances - Women 41% +2.1 pts
      • Family Planning 64% +2.1 pts
      • Pet Care 5% +1.6 pts
      • Shaving Needs 24% +1.3 pts
      • Cosmetics 41% +1.1 pts
      • Cough & Cold Remedies 46% +1.1 pts
      • Pain Remedies 37% +1.1 pts
      • Skin Care Preparations 34% +1.1 pts
      Page Source: Nielsen Strategic Planner, 52 Weeks Ending 6/13/09, Total US
    • 41. Drug Channel Growth By Market Page Source: Nielsen Strategic Planner, 52 Weeks Ending 6/13/09 US Drug Channel Total Store: +4.9% HBC: +3.5%
    • 42. How are store brands performing in the drug channel?
    • 43. Across channels, store brands continue to grow
      • Private Label Performance through 6/13/09
        • Annual Sales: $85.7 Billion
        • PL $ Share of Store: 16.8% (Up 0.8 Pts)
        • $ Sales Up $6.3 Billion (+8.0%) vs. Year Ago
        • Up $13.9 Billion (+19%) vs. Two Years Ago
      • Source: Nielsen, Total U.S. Grocery/Drug/Mass Including Walmart
      Page
    • 44. PL growth was driven at first by higher prices, but in 2008, unit growth indicates real shifting Source: Nielsen Strategic Planner, Total U.S. FDMxWM 2007 Higher Prices Drive PL Growth 2008+ Real Shifting from Brands to PL
    • 45. Drug private label is not as strong as store brands in grocery and mass channels
      • PL $ Share PL Share
      • Channel of Store Pt Chg
      • Grocery Channel 18.7% +1.0 pts
      • Drug Channel 13.7% +1.0 pts
      • Wal-Mart 15.8% +0.5 pts
      • Convenience Channel 1.5% +0.1 pts
      Page Source: Nielsen Strategic Planner & Scantrack Convenience, Total US, 52 Weeks Ending 6/13/09
    • 46. Top-Selling Private Label Categories in the Drug Channel
      • 52-Week Chg Vs Share of
      • Private Label Category Drug $ Sales Yr Ago Category
      • PL Cold/Allergy Remedies $396 MM +20% 25%
      • PL Nutritional Supplements $259 MM +14% 21%
      • PL Headache Remedies $244 MM +10% 25%
      • PL Batteries $169 MM +15% 27%
      • PL Anti-Smoking Products $166 MM +7% 45%
      • PL Laxatives $161 MM +7% 33%
      • PL Antacids $150 MM +59% 24%
      • PL Adult Incontinence $143 MM +11% 39%
      • PL First Aid Treatments $138 MM +11% 34%
      • PL Nuts - Cans $129 MM +18% 64%
      • PL Office/School Supplies $119 MM +9% 17%
      Page Source: Nielsen Strategic Planner, 52 Weeks Ending 6/13/09, Total US Drug Channel
    • 47. Top Private Label Categories For Sales Growth in the Drug Channel
      • 52-Week Chg Vs Share of
      • Private Label Category Drug $ Sales Yr Ago Category
      • PL Pet Care $16 MM +170% 11%
      • PL Laundry Detg – HD Liq $22 MM +121% 7%
      • PL Antacids $150 MM +59% 24%
      • PL Fabric Softeners $10 MM +45% 15%
      • PL Face Cream & Lotions $36 MM +43% 5%
      • PL Cookies $36 MM +38% 17%
      • PL Garbage Bags $40 MM +30% 45%
      • PL Hsehold Sponges/Cloths $12 MM +29% 24%
      • PL Paper Towels $52 MM +29% 25%
      • PL Sinus Remedies $20 MM +24% 32%
      • PL Pretzels $12 MM +23% 28%
      Page Strong growth in several categories Source: Nielsen Strategic Planner, 52 Weeks Ending 6/13/09, Total US Drug Channel
    • 48. QUIZ Question
      • Which category has the highest private label share in the drug channel?
      Page Answer: Canned Nuts 64% of drug channel sales are from store brands Source: Nielsen Strategic Planner
    • 49. Drug Channel Categories with the Highest Private Label Share
      • 52-Week Chg Vs Share of
      • Private Label Category Drug $ Sales Yr Ago Category
      • PL Nuts - Canned $129 MM +18% 64%
      • PL Disposable Plates/Cups $50 MM +10% 63%
      • PL Nuts - Cello Wrapped $55 MM +15% 56%
      • PL Cotton & Swabs $42 MM +6% 56%
      • PL Prsnl Grooming Sponges $11 MM +7% 51%
      • PL Nuts - Jars $15 MM -5% 50%
      • PL Anti-Smoking Products $166 MM +7% 45%
      • PL Garbage Bags $40 MM +30% 45%
      • PL Adult Incontinence $143 MM +11% 39%
      • PL Fruit - Dried & Snacks $10 MM -4% 39%
      • PL Light Bulbs $32 MM -2% 38%
      Page Store brands dominate a wide variety of categories in the drug channel. Source: Nielsen Strategic Planner, 52 Weeks Ending 6/13/09, Total US Drug Channel
    • 50. How well does Walmart compete in HBC categories?
    • 51. Drug Channel Private Label Share Vs. Walmart
      • Drug Walmart Share
      • Private Label Category PL Share PL Shr Gap
      • PL Anti-Smoking Products 45% 71% 26 pts
      • PL Hair Growth Products 32% 53% 21 pts
      • PL Mineral Supplements 34% 52% 18 pts
      • PL Oral Antiseptics/Rinses 14% 27% 13 pts
      • PL Vitamins/Tonics – Liq/Pwdr 10% 23% 13 pts
      • PL Talc & Dusting Powder 16% 26% 10 pts
      • PL Adult Multi-Vitamins 28% 36% 8 pts
      • PL Nutritional Supplements 21% 28% 7 pts
      • PL Headache Remedies 25% 32% 7 pts
      • PL Diet Aids-Complete Nutri 0% 6% 6 pts
      • PL Cosmetics - Nail Care 7% 12% 5 pts
      • PL Antacids 24% 29% 5 pts
      Page Many store brands in the drug channel are under-developed relative to Walmart. Source: Nielsen Strategic Planner, 52 Weeks Ending 6/13/09, Total US Drug Channel
    • 52. Top HBC Categories at Walmart
      • 52-Week Change Share of
      • Nielsen Category WM $ Sales Vs Ygo FDM+WM
      • Nutritional Supplements $1,252 MM +6% 33%
      • Cold/Allergy Remedies $803 MM +5% 23%
      • Shampoo $742 MM -6% 35%
      • Headache Remedies $724 MM -3% 27%
      • Tooth Cleaners & Whiteners $643 MM -1% 31%
      • Blade/Razors/Razor Blades $561 MM -4% 37%
      • Deodorant-stick/Solid $559 MM +3% 38%
      • Face Cream & Lotions $547 MM -3% 29%
      • Hair Coloring Products $511 MM -5% 34%
      • Hand Cream & Body Lotions $483 MM +6% 35%
      • Cosmetics - Eye Makeup $469 MM -1% 32%
      Page Source: Nielsen Walmart Channel, 52 Weeks Ending 6/13/09, Total U.S.
    • 53. HBC Categories with the Highest Share at Walmart
      • 52-Week Change Share of
      • Nielsen Category WM $ Sales Vs Ygo FDM+WM
      • Feminine Deodorant Sprays $22 MM -11% 58%
      • Men’s Gift Sets & Travel Kits $75 MM +43% 53%
      • Cologne/Lotion – Men’s $122 MM -15% 51%
      • Personal Grooming Sponges $56 MM +2% 50%
      • Ethnic Hair Preparations $76 MM +0% 49%
      • Appetite Suppressants $118 MM -25% 48%
      • Deodorant-Cologne Type $88 MM +5% 48%
      • Baby Care - Oils/Lotions $60 MM +3% 42%
      • Deodorant-Aerosol $54 MM -5% 41%
      • Denture Products $165 MM -1% 40%
      • Douches $19 MM -28% 40%
      Page Source: Nielsen Walmart Channel, 52 Weeks Ending 6/13/09, Total U.S.
    • 54. 400 Walmart In-Store Health Clinics by 2010
      • “The Clinic at Walmart” brand
      • First clinics opened April-08 in Atlanta
      • Co-branded with local hospitals
      • Average visit: $50 - $65
      Page
    • 55. In Beta Test: Online Groceries & HBC
      • Now lists many HBC & food products at Walmart.com
      • HBC & Food not yet available for sale online
      • Product details include…
        • Package photos
        • Ingredients
        • Full Nutritional Facts
        • Usage Instructions
        • Allergy/Interaction Warnings
        • Customer Product Reviews
      Page Customer product reviews may be a game-changer for CPG manufacturers
    • 56. Summary
      • Drug stores generate $43.4 billion annually excluding Rx
      • The top 3 chains generate 82% of drug channel ACV
      • Walgreens & Rite Aid focusing on efficient assortment
      • Drug dollars skew to older households in urban areas
      • Consumers make fewer shopping trips across channels
      • Cigarettes are the top category in the drug channel
      • HBC growth has not kept up with total store growth in the drug channel
      • FDM private label dollars are up 19% vs. 2 years ago
      • Walmart is a major player in HBC categories
      Page
    • 57. Thank you Questions?

    ×