Target Creates Bath & Beauty Collection

June 1, 2006
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Target Creates Bath & Beauty Collection

Target launches a Bath & Beauty department featuring new and exclusive products and accessories, focusing on 20 unique brands which are based on beauty rituals and ingredients from countries such as New Zealand, Scotland, England, Greece, Spain and Portugal.
The new Target Bath & Beauty brands contain proven ingredients such as olives, honey, ginger, milk and chamomile as well as more exotic, spa-based ingredients such as Dead Sea salts, algae and eucalyptus. A company announcement said: “The carefully edited assortment of boutique-like beauty brands aims to inspire and indulge men, women and teens alike with everything from invigorating scrubs, relaxing bath salts and rich body crèmes, to gourmet toothpastes, soothing after-shave lotions and refreshing shower gels.”
The new department features an easy-to-shop environment designed to look and feel like its department store counterparts without the department store-like prices. In addition to the new items, functional items including eye masks, makeup bags and DOP kits will be offered.
Whole Foods Makes Space for its Own Organic Milk
Whole Foods Markets, the Austin, Texas-based natural and organic foods retailer, will be making room for its own line of organic milk by dropping the gallon size of the Horizon Organic brand. Most stores will continue to carry other Horizon Organic milk sizes as well as a range of other Horizon Organic dairy products.
A company spokesperson says that the retailer has been expanding its 365 Organic line across a variety of categories and milk is a relatively new addition.
According to a Rocky Mountain News story, Whole Foods said there are two issues: space and supply. The paper quoted Scott Simons, a Whole Foods spokesperson who said: “The bottom line is that there’s only so much shelf space in our stores.”  
In addition, as demand for organic milk has grown rapidly in recent years, the ability of branded milk producers to meet that demand has led to shortages and out-of-stock situations. Offering a private label organic milk product helps ensure that customers will not be disappointed.
A successful private label program can serve as a key differentiator for many retailers, and Whole Foods’ 365 Organic offerings are prime examples. As Simons told the Rocky Mountain News, “It’s an opportunity for us to be able to control quality and also to be able to guarantee that we’ll have plenty of supply for our customers.”
Most In-Demand Products Identified
A recent study sponsored by Prescient, a West Chester, Pa.-based supply chain firm, identifies the key categories that a retailer must keep in stock or run the risk of alienating shoppers. Dubbed “Beeline” products, these items are the ones that consumers rush to replenish as soon as they run out.
The top ten are:
  1.  milk (the leader by a large margin)
  2.  bread
  3.  toilet paper
  4.  medicine
  5.  toothpaste
  6.  eggs
  7.  coffee
  8.  meat
  9.  fruit
10.  cigarettes

Importantly, the survey of more than 1,000 consumers over the age of 18, found that nearly half (49 percent) of all shoppers said they would likely try a different store next time if they couldn’t find these products in their usual store. There was virtually no difference between male and female shoppers.
Prescient’s President and Chief Executive Officer Jane Hoffer said in a prepared statement: “Today’s busy consumers simply don’t have extra time to make a second stop, so stores that aggressively provide for these products of intense demand … have a better shot at keeping their customers coming back.”  Hoffer also noted that rising gas prices will only exacerbate the concern shoppers feel if they are unable to find these key products and are forced to go to another store.
Rounding out the 25 most in-demand categories are: soda, bottled water, soap, diapers, feminine products, vegetables, deodorant, pet food, shampoo, laundry detergent, cereal, juice, beer, pain relievers, sugar and tissue paper.
Private Label OTC to Reach $3.6 Billion
Led by growing sales in the cough-cold-allergy-sinus, first-aid and anti-smoking sectors, the market for private label over-the-counter drugs is expected to reach $3.6 billion by 2010, according to a study from Kalorama Information, a division of MarketResearch.com.
The study predicts that the wide-reaching appeal of lower costs, better packaging, and promotion and innovative delivery systems have caught on with consumers. With the market having shed its image of selling second-rate, “me-too” versions of national brands, private label OTC products accounted for 19.7 percent of the OTC market in 2004, or some $3.4 billion in 2005, according to the study.
The study concludes that growth opportunities opened for private label analgesics following the COC-2 inhibitor scandal that shook the country in 2005. As consumers switched back to safer OTC pain relievers, they also decided to take advantage of the cost savings associated with store brands.
“Private label OTC’s have moved into their niche by providing high-visibility products that often go beyond name brand offerings, “said Steven Heffner, publisher at Kalorama Information. “There’s actually a new trend in the foot care sector where, for the first time, retailers are completely replacing national brands with the own brands, as private label sales are far outpacing their national counterparts.”
The study examines seven broad categories of products which also include gastrointestinal, eye/lens care, foot care, family planning, sleeping aids and miscellaneous remedies.

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