High
Performance Batteries Deserve Expanded Shelf Space
By Mike Sleeper, President/CEO, Imperial Distributors, Inc.
Most people who have switched from film to digital love their new cameras.
There are many advantages--but digital cameras need a lot of battery power.
For retailers, the downside to digital photography has an upside. Since
more batteries are needed, more are sold. The power-cell business is already
huge, about $4 billion a year and growing throughout all channels. With
the power needs of digital cameras, as well as other power-hungry devices,
batteries will continue to be a big growth category.
Growth will come primarily in dollars vs. units. Advances in battery technology
have created higher performance products which carry higher retails. But
this is not a turn-off for price-conscious consumers. Longer-lasting quality
batteries presents real value, compared to cheaper batteries that don’t
last.
Alkalines have been upgraded, while the biggest advances have come from
lithium. Lithium technology, first used in hearing aid cells, is now applied
to AA and AAA batteries. Although more than double the price of alkalines,
lithium batteries last three to four times longer. That's a plus for millions
of consumers who have switched to digital from conventional film cameras.
The questions being asked by non-food category managers is whether premium-priced
lithiums deserve more space and high-impulse checkout displays.
Judging from field reports – the answer is yes! The degree of success,
however, depends on customer demographics. Best sales will come from middle-to-high-income
areas, where shoppers are more likely to have digital cameras. But as
prices drop, digital cameras will be affordable to practically everyone.
As for conventional photo film, it's declining. Yet many supermarkets
are running the same shelf footage for in-line photo film as batteries.
. .
Alkaline and lithium batteries are riding a growth wave. Supermarkets
should consider merchandising their in-line shelf and check out space
accordingly. High performance products deserve expanded higher performance
shelf space.
High
Performance Batteries Deserve Expanded Shelf Space