CEDAR RAPIDS, Iowa -- Lil' Drug Store Products Inc. has introduced a health and beauty care (HBC) category management program for wholesalers and retailers, the Convenience Profitability Program (CPP).
Wholesalers and retailers that have implemented the [CPP] have increased distribution of top-moving products and reduced the total number of SKUs carried by up to 50%, said Paul Rossberger, vice president of sales and marketing for Lil' Drug Store Products.
Currently, convenience HBC is underdeveloped and represents only a small [image-nocss] percentage of in-store sales, according to the company. Category managers tend to focus on higher-volume, higher-impact areas. The section is highly SKU intensive, has many subcategories and has a history of complicated PSE legislation. These challenges are worth reviewing, the company said, because HBC items contribute high margins.
Lil' Drug Stores' CPP will generate incremental sales and make the HBC easy to run, it said. Little to no maintenance is required for the program itself, and inventory investment is reduced by as much as 50% as the slowest turning items are identified, added the company.
And Lil' Drug Store provides customer-specific sales tools aimed at making execution at retail consistent and simple, it said. Available service components for the new program include product assortment, customized and account specific planogram development, retail pricing, manufacturer program information and personalized sales tools.
We want to support wholesale and retail category managers in growing set profit dollars in HBC, while increasing Lil' Drug Stores' value to them, said Rossberger.
Lil' Drug Store is a privately held company based in Cedar Rapids, Iowa. It is responsible for the production, sales and distribution of consumer healthcare products. Lil' Drug Store's product mix includes HBC, automotive and household items. Distribution markets include convenience, grocery, drug, mass, military, travel, vending and foodservice.
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