Cincinnati based supermarket chain Kroger is continuing its push into the beauty side of HBC by increasing the penetration by double-digits of its Private Brand Mirra that was launched late last year.
According to an Associated Press article:
“This was a very big leap for Kroger,” said Susan Scherer, who manages its beauty business. Kroger, with nearly 2,500 stores in 31 states, has made store brands a high priority, saying the products build customer loyalty. Store brands also usually have bigger profit margins than national brands. Corporate brands account for 34% of Kroger grocery items sold and 26% of grocery revenue.”
Kroger offers more than 20,000 store brand items, a 25% increase in the last two years. Fewer than 100 are under the Mirra brand that includes shampoos, face creams and accessories such as makeup brushes and loofahs. But that’s up from 41 three months ago.
CEO David B. Dillon said Kroger identified health and beauty as an underdeveloped area among store brands.
“The kind of customer that we have comes to us for things they need on a regular basis,” Dillon said in an interview. “Health and beauty items, you don’t consume them like food items, but you do use them up pretty regularly; so you go back for replenishment, and those are the kind of items that are our forte.”
Meanwhile, Kroger’s next additions to Mirra’s lineup will be anti-wrinkle products with retinol-A, with more new products next summer, Scherer said. Marketing that has so far relied on in-store demonstrations and word-of-mouth will step up this fall with national advertising inserts and coupons.