The health and beauty care (HBC) category generates high margins for convenience store retailers but, due to space constraints, it is imperative to know that not all subcategories within HBC are equal in a c-store. The typical footprint is small — usually 3 feet or 4 feet wide — making it crucial to get the brand and product assortment right. Convenience Valet’s concentration is focused on the top seven subcategories that represent more than 85 percent of the total HBC category, and the corresponding best-selling SKUs.
Based on other channel research, Convenience Valet has found that 68 percent of consumers shopping for HBC will leave the store if their brand is not available. HBC shoppers have an immediate need and will be specific in filling it. When the shopper leaves to find what they are looking for, they go to another c-store (i.e., a competitor) and when they find it, nearly seven out of 10 consumers will then purchase an incremental item. Retailers must get the brands and products right or more than just HBC sales will be lost.