NEW YORK — Walgreen Co. is steadily building up its stable of exclusive lines, many of them in the beauty category.
In a goal to establish links to shoppers who can only buy these brands at a Walgreens store, the drugstore giant is leading the way with new entries in men’s and skin care. These lines add to the existing selection of color cosmetics called IsaDora, a proprietary alternative designer fragrance line named InStyle and a new European skin care selection that just hit stores. In a sense, exclusive lines are becoming the more upscale equivalent of private labels, which rocketed in sales in the Eighties.
“Walgreens has long been a destination for beauty shoppers,” said Michelle Hobson, manager of strategic business development for Walgreens beauty. One of the hottest new items Walgreens has uncovered, according to the company, is Zeno, a medical device to treat acne. Added Hobson: “We are always searching for the latest, most reliable solutions for our customers’ skin care dilemmas. Zeno is also a medical device so it is a perfect fit for Walgreens. The word is getting out about Zeno, and our beauty advisers in each store are playing an important role in educating consumers about this new technology.”
Zeno is the first and only FDA-cleared device for acne, which, up until distribution in Walgreens, was only available via physicians and medispas. The product works by harnessing heat to treat bacteria that causes most acne outbreaks.
“Zeno is successful because it complements good hygiene regimens and offers an alternative solution to tackle a disease that impacts so many people,” said Robert Conrad, chief operating officer for Tyrell, the company behind Zeno. “More than 90 million Americans suffer from acne, and now, because of Zeno and its availability in Walgreens, they have the ability to conquer embarrassing blemishes in the privacy of their own homes.” What has really impressed Walgreens’ executives is the price point the product commands. The initial item sells for $149 with replacements priced at $25.
Walgreens first tested Zeno in a three-month, three-market experiment in Wisconsin, Nashville and Atlanta. Based on the success, the device was launched chain-wide in August. The product is merchandised near the beauty counter so Walgreens advisers can demonstrate how it works.
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Another fairly new exclusive for Walgreens is Men’s Zone, a men’s grooming line created exclusively for Walgreens including everything from styling gel to antipuff eye creams. Prices stretch from $3.99 for body sprays to $8.99 for antiwrinkle creams. Realizing men are shopping more for grooming needs, Walgreens launched the line in May and is reported to be doing very well and being selected by men for personal use. Walgreens merchandises Men’s Zone in the basic shave department. The line is slightly broader than some of the other men’s lines launched by leading manufacturers and cuts across various categories including skin care, hair care and fragrances.
Walgreens recently completed setting up its stores with its test of European skin care brands, which the company thinks will help establish a strong skin care business. While many chains have seen the decline of alternative designer scents, Walgreens maintains a healthy business with InStyle products. Walgreens was one of the first mass marketers to merchandise the category in the Eighties and the category remains strong for the chain. IsaDora continues to grow in sales and obtain more shelf space throughout Walgreens’ beauty department.
Walgreens isn’t the only major mass merchant building a portfolio of homegrown labels, but has emerged as one of the most aggressive in the past six months. Target and CVS are also major builders of their own labels or U.S exclusives. Industry sources expect several noncompeting chains will get together to sell exclusives to their own markets, too. The challenge remaining for merchants will be to see if they also can be marketers.