Commentary From Our President
Make HBC Your #1 New Year’s Resolution
Michael D. Sleeper, President/CEO, Imperial Distributors, Inc.
Here are TEN reasons why management should make HBC its top priority on the New Year’s Resolution To Do list.
- PROVING ITS WORTH. If ever a store department proved itself worthy of confidence, it’s HBC. During the Flu Epidemic in 2009, those supermarkets who stepped up to the HBC plate, increased sales while fulfilling their obligation to customers by stocking needed products in depth and providing good value.
- HIGH PROFITS. Progressive Grocer published a Net Profit Study in which HBC’s contribution to store net profit far exceeded its share of sales. Retail prices and percent gross profit are higher than most other store products. The small size of most HBC items elevates the sales/margin per lin. ft. measurement. HBC needs no refrigeration and has no spoilage expense.
- EXCELLENT GROWTH. Regardless of the recession, HBC unit sales promise strong future growth. The department is underpinned by both nutritional and medical needs of the aging U.S. population. It’s estimated that in ten years, one out of three households will be headed by someone over the age of 62. Seniors have head to toe HBC needs, from hair coloring to eye glasses to corn pads and everything in between–vitamins, digestive remedies and pain relievers.
- MORE NEW ITEMS. HBC is extremely dynamic, with more new items, new categories and new brands. Innovation, new formulations and advances in technology are all commonplace in HBC.
- TRAFFIC BUILDING POWER. While all HBC wanted items may not appear on everyone’s shopping list, some are in everyone’s mind. Oral care, shampoo and deodorants are used every day by practically everyone. Few other products in the store can make that claim.
- MAJOR SUPPLIERS. The number of major suppliers producing HBC products is formidable and includes– Unilever, Procter & Gamble, Johnson & Johnson, Colgate-Palmolive, Bayer, Beiersdorf, Bic, Dial, GlaxoSmithKline, Kimberly-Clark, Novartis, Revlon, Schering-Plough, 3M, Wyeth. Advertising, promotion, marketing and product development, represents billions invested by the HBC suppliers, year after year.
- NATURAL & WELLNESS. A good nutritional/wellness program with natural HBC products is a growth engine for the HBC department. Giving HBC more support is one of the clearest ways to express to shoppers your stores’ commitment to green, eco-friendly, natural and wellness programs.
- POLITICAL SUPPORT. Health care is a major domestic issue. Health Care products within the HBC departments are most likely to be involved in whatever happens to health care. So, HBC departments should look sharp and be aggressively priced.
- PRIVATE LABEL. Private Label outperformed national brands in 2009 and found a new and bigger home in virtually every category segment. Embrace Private Label to help transform your HBC categories.
- MAKING HBC. The Food Channel represents 32.7% of a $41.2 billion HBC market. Not too bad, but it could be better. Making HBC your #1 New Years Resolution will create a Happier New Year for all!!
Wishing you the very best New Year in 2010.
For comments or questions, contact us by phone at 508-756-5156, or e-mail: msleeper@imperialdistributors.com
Make HBC Your #1 New Year’s Resolution