Category Management

The HBC category generates high margins for convenience retailers. However, with hundreds of SKUs to manage and many subcategories inside the HBC category, analysis can be time consuming for a c-store category manager. Lil’ Drug Store’s industry leading Category Management process utilizes a blend of national syndicated data, customer-specific scan data, HBC industry trends, pricing analyses, and proprietary consumer research and insights to provide recommendations that deliver sales and profit growth.

Over 40,000 c-stores utilize Lil’ Drug Store Products category management services, and these retail partners have achieved category dollar sales growth that has exceeded Convenience Channel results for each of the last five years. In fact, the latest 52-week Nielsen Convenience sales data shows that Lil’ Drug’s category management retail partners experienced more than 2X higher dollar growth rate than the rest of the Convenience Channel. Below are just a few examples of how Lil’ Drug’s category management recommendations helped achieve significant sales and profit growth.

  • In 2018, Lil’ Drug Store transitioned customers to branded trial packs from private label trial packs. At one chain with over 300 stores, the impact to the retailer was +21% higher unit sales and +63% higher dollar sales on the transitioned items.
  • In 2018, Lil’ Drug Store introduced larger sized private label ibuprofen and pain reliever items. By adding these mid-tier items with slightly higher retails, more consumers made the trade-up to full-size branded options. The result was total ibuprofen (including private label, full-size branded, and trial size branded) dollar sales up +12% and unit sales up +3% and total acetaminophen dollar sales up +18% and unit sales up +12%.
  • Lil’ Drug’s exclusive Carmex BOGO promotion display program had a major impact on the Lip Treatment category during peak season across the Total U.S. Convenience Channel, increasing Carmex dollar sales +7.2% while contributing to category dollar growth +4.7% vs. prior year.
  • At one national c-store chain the Carmex BOGO display was placed in 2,200 retail stores during peak season. Those stores saw their total Lip Treatment category grow +15% in dollar sales, +11% in units, and +24% in gross margin dollars.

Contact Us to learn more about partnering with Lil' Drug to grow your total HBC category.
Source: ACNielsen C-Store Total HBC 52 weeks ending 01-26-19; Lil’ Drug retailers include Nielsen census accounts only