Kroger Looks for Beautiful Results from Store Brand
It’s no secret to anyone who knows the food, drug and mass trades that when it comes to health and beauty care, private label brands have done pretty well in the H area, but not so great on the BC end.
The general wisdom here is that consumers are comfortable buying a private label anagelsic that is the chemical equivalent of a brand such as Tylenol, for example.
In beauty care, however, retailers have suffered from the consumer perception that store brands do not meet their personal grooming needs or match the product quality of national brands across price tiers.
Kroger believes it has overcome those hurdles with its mirra line. The grocer says the brand, which was first rolled out last year, is for “family-focused women seeking effortless beauty.” Products in categories including hair care, body care and skin care use natural ingredients to meet three distinct consumer needs, according to Kroger, including: “Daily – routine personal care; Renew – a rejuvenating time out; and Inspire – quick transformations for a night out.”
The mirra line, according to an Associated Press report, has achieved double-digit sales increases since it was first introduced. Kroger has increased the number of items in the mirra line from 41 to nearly 100 in the space of three months. It is looking to further expand the line later this year and into 2011.
Susan Scherer, who manages Kroger’s corporate beauty business, told the AP that the mirra line represented “a very big leap” for the grocer.
Kroger’s CEO David Dillon sees an opportunity for the retailer to meet consumers’ needs with the mirra line and elevate its private label HBC business to a new level. On the grocery side of the business, private label represents 34 percent of units and 26 percent of revenues for Kroger.
“The kind of customer that we have comes to us for things they need on a regular basis,” Mr. Dillon told the AP. “Health and beauty items, you don’t consume them like food items, but you do use them up pretty regularly.”
The Kroger website is offering a coupon for $5 off the purchase of two mirra items.
Discussion Questions: Are consumers more willing to try private label health and beauty care items today than they have been in the past? Is Kroger the right mainstream retailer to make beauty care work?
- Kroger goes for beauty business – The Associated Press/The Commercial Appeal
- Exclusive Brands – Kroger Co.