Exclusive: Kerr Drug Makes Surprise Leap in PL Promotions

April 13, 2011
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Kerr Drug made waves last week in private label retail promotions making its way into the top three retailers, according to an analysis of ads for the week ending April 9, 2011 provided exclusively to PLBuyer’s eReport by Efficient Collaborative Retail Marketing (ECRM).
The Raleigh, N.C.-based grocer devoted 50.6 percent of its weekly circular to private label promotions, a 28.9 percent increase compared to its average for private label promotions in 2010. “Kerr seems to be making a big push for its own private label Premier Value,” says Tom Pirovano, vice president, industry insights, at ECRM. “The first four pages of the circular seem to be dedicated to private label and private label buy one, get one free promotions. This means that the company is not just doing a lot of ads but deep deals as well across all categories.”
While the push is sure to make waves in the retail community Pirovano does not see the action as sustainable. “This is the kind of promotion that may not last from week to week, although that might be the store’s strategy as well. This is probably just a one time push,” he says.
Looking at category promotions, allergy products saw a decrease of 11.3 percent compared to its average for private label promotions in 2010. “In recent weeks there has been a push toward branded allergy products because companies like Allegra are taking advantage of the seasonality of the category and pushing promotions,” says Pirovano.  

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