In this Issue

Over the past seven years, Safeway has demonstrated a list of accomplishments aimed at healthier living, including launching its O Organics line of USDA certified-organic foods, removing added trans-fats from all of its private-label products and launching Eating Right for Kids, a line that contains no high fructose corn syrup. Today, the effort shows little signs of slowing as the chain kicked off 2011 with two new initiatives: SimpleNutrition and Open Nature.

A funny thing happened on the way to the cash register. A coveted diabetic shopper intent on saving money saw promotions that resonated with value. She was hooked.

On this trip, promotions influenced her to expand her basket from just insulin to related care items, foot cream and a sugar-free treat. It was as if the retailer and suppliers completely understood her daily regimen, lifestyle, shopping behaviors, willingness to spend and purchase triggers. Indeed, they did.

How? They mastered the process of promotion optimization.

It is no secret that oral care is a mature market, yet consumers have shown a willingness to pay for products that make oral health easier. In light of this, some industry observers predicted that growth will be in the form of those products that are “value-added,” “improved benefit” and “simplified.”

The definition of snacking has broadened, and more choices are competing for the consumer dollar. Consumers also continue to want more for their money.

Value is a big issue for consumers when it comes to purchasing snacks. Research from SymphonyIRI Group revealed that 80% of consumers actively look for the best value when buying snacks, and 42% are cutting back on money spent on snacks.

Meanwhile, competition is increasing from fast food chains that are adding smaller-sized snackable foods to their menus.

The drug store channel isn’t maximizing its potential in the consumer electronics category. According to research by TWICE and the Stevenson Co., CE sales at Walgreens, Rite Aid and CVS amounted to $111 billion last year, less than 1% of the chains’ combined revenue. At Walmart, electronics comprise about 7% of sales. TWICE’s research also revealed that CE sales at all three drug chains were down last year.

The Obama administration on the official White House website identifies “5 Important Numbers on Health Reform.” These include:

• Zero. The amount consumers would have to pay for premiums, co-insurance or co-payments on any preventive services;

• Fifty. The number of states that now offer insurance options to all people, regardless of any pre-existing conditions;

• One million. The number of doughnut-hole rebate checks mailed to seniors under Part D as of August 2010;

It’s about 2:30 p.m. on Tuesday. I usually wait a couple more days to write my column, but I don’t need to think any more about what to write.

My first insights into retailing came to me by way of my great aunt Agatha Mastromatteo-Corsello-Langella at the boutique she owned just off the corner of 72nd Street and Broadway, here in New York City. As I write this now, it has been less than three hours since she passed away in the company of her two sons Michael and Glen.

As Drug Store News suggested last month, legislation under consideration in Tennessee and Kentucky that would make the popular decongestant pseudoephedrine only available by prescription has, in fact, sparked interest in neighboring states. Arkansas shares a border with Kentucky, where a PSE prescription-only bill was filed in January, and Mississippi, one of two states that already has passed PSE prescription-only legislation.