In this Issue



Following a dismal year 
in 2009, U.S. prestige beauty categories experienced an upswing in 2010 and, judging by the numbers, 2011 looks to be a positive year for prestige beauty.

Rising commodity costs and brutal competition have been squeezing profits from the ready-to-eat cereal category. Dollar sales for the 52-week period ended Dec. 26, 2010, were down 3%, according to SymphonyIRI Group. Sue Viamari, editor of SymphonyIRI’s Times and Trends, said the category has been in decline during the past several quarters, and there was a 0.7% decline in price per volume during the same period.


Move over Snuggie and ShamWow — more direct-response products are coming to retail.


“Over the past five years, there’s been an explosion of these products at retail,” said Tom Haire, editor of Response Magazine, a publication that covers the direct-response industry. “Retailers see products that fly off the shelves because they’ve been advertised so heavily, and manufacturers see an opportunity to extend the life of the brand.”

WASHINGTON — The National Association of Chain Drug Stores and its members from across the country once again are flocking to Capitol Hill for RxImpact Day, a groundbreaking, two-day event that enables pharmacists to meet with members of Congress to discuss the vital role of retail pharmacy within the U.S. healthcare system and its ability to help reduce annual healthcare costs.

BETHESDA, Md. — It’s technology, and lots of it, that will be relieving the burden of caregiving for today’s sandwich generation — those baby boomers faced with caring for their senior parents while at the same time managing a teenager at home.


A new survey released last month by the National Alliance for Caregiving and UnitedHealthcare found that more than two-thirds of family caregivers are interested in technology to help them with caregiving.


As expected, advancements in technology and women’s reluctance to trade down in a segment that promises to ward off the signs of aging have spelled continued growth for anti-aging skin care products.


“Manufacturers continue to introduce new active ingredients ... while advanced anti-aging formulas are spilling over from the premium segment into the mass channel,” stated Euromonitor International in its most recent U.S. skin care report.

As photo processing continues to evolve, retailers are finding new ways to make the department profitable. Bing Liem, VP sales for Fujifilm North America, said retailers need to re-evaluate their existing on-site photo business.


“It’s critical to maximize the use of existing assets,” he said. New product offerings, such as posters, folded cards, calendars and books, help maximize the value of the category, Liem said.


SIOUX FALLS, S.D. — Welcome to Louise Avenue in Sioux Falls, S.D. — the home of the “new face” of Lewis Drug.


Here within this new store, consumers will experience a larger, revamped pharmacy department with wood flooring, lifestyle images and a waiting area with televisions and refreshments. The beauty area has a more upscale look and feel, and there’s also a walk-in cooler that runs about 100 linear ft. and houses both beverages and adult beverages, including mini-kegs and chilled wine.