Vitamin Shoppe reports 12.3% sales jump in Q2
NORTH BERGEN, N.J. Vitamin Shoppe on Thursday posted a 12.3% lift in sales for its second quarter ended June 26. Sales reached $192.2 million.
“2010 started strong and that momentum continued into the second quarter,” stated Rick Markee, Vitamin Shoppe chairman and CEO. “Comparable-store sales for the second quarter of 2010 increased 8.6%, making this our 19th consecutive quarter of comparable same-store sales growth,” he said.
Much of that same-store sales performance can be attributed to the maturing of the retailer’s store base, Markee told analysts Thursday morning. Approximately 40% of the Vitamin Shoppe store base is less than four years old, he said. However, mature stores are experiencing positive comps as well, he added.
The company operated 463 stores as of June 26, compared with 425 stores in the same quarter last year.
In an update on its 2010 outlook, Vitamin Shoppe expected to now spend approximately $22 million in total capital expenditures, which should bring the new store count for the year to 46 from 42.
The company expected comparable-store sales growth for the remainder of the year in line with industry growth in the mid-single digits.
PositiveID developing breath glucose-detection device
DELRAY BEACH, Fla. PositiveID announced that development of its breath glucose-detection device prototype will be completed by year’s end.
The handheld Easy Check breath glucose detection device utilizes a single-use capsule containing a proprietary reagent that triggers a chemical reaction that can be measured immediately and correlated to blood-glucose levels without using blood — required by existing glucose-measuring devices, PositiveID said.
Scott Silverman, chairman and CEO of PositiveID, said, “We are very pleased that the development and design of our noninvasive Easy Check breath glucose detection device has occurred ahead of schedule. We believe the accelerated completion of the initial design phase will potentially allow us to begin testing the handheld device during 2010.”
New research establishes importance of ‘beacon’ OTC brands
CHICAGO Well-established national brands, or “beacon brands,” are crucial in attracting shoppers to a particular set, especially when merchandised as a brand block, according to new research from McNeil Consumer Healthcare presented during the Institute for International Research’s recent Shopper Insights in Action conference.
The objective of McNeil’s research was to learn more about the “shopability” of over-the-counter medicines, and uncover suggestions for better messaging and other communication strategies at the shelf, according to published reports.
Focusing specifically on the shopability of analgesics, cough-cold and digestives, McNeil found that broad selection and small packaging actually served as an intimidating factor, leaving shoppers overwhelmed and/or confused.
Appropriate category synergies and improved navigational messaging were cited as examples of how to improve the shopability of a particular category, especially considering consumers oftentimes shop intuitively by symptom rather than category, according to the research. The majority of consumers surveyed as part of the research (81%), also suggested more information, both on the packaging and on shelf, would serve to help them better navigate an OTC category.
Many shoppers also suggested that they identified where to shop for a particular condition by seeking out brand-blocked beacon brands, or highly recognizable brands. “We recommend using beacon brands at top of the shelf to draw people in,” Michael Pishvanov, associate director of Shopper Marketing Sales Strategy at McNeil Consumer Healthcare, told attendees at the conference. “So, from 30 ft. away, somebody can look and – even if they can’t speak English – realize what that category is.”