Revamped department boosts sales of fragrances at Kroger

Revamped department boosts sales of fragrances at Kroger

CINCINNATI -- Until a few years ago, supermarket chains had about as much use for prestige cosmetics and fragrances as fish had for bicycles. Likewise, the upscale fragrance brands wouldn't have been caught dead in a food store.

That was before food chains began turning their stores into multi-department shopping emporiums. Kroger has been particularly adept at trading on the one-stop appeal of its stores with new departments and offerings, including a recharged cosmetics/fragrance section that bears little resemblance to earlier models.

"For years, merchandising experts, and the fragrance makers themselves, believed that upscale product lines could be marketed successfully only in large department stores or specialty boutiques," said new Kroger chief executive Joe Pichler last spring. "But today's customers often can't spare the time to drive downtown or to the local shopping mall for such a specialized purchase."

Seizing what it saw as an opportunity, Kroger boosted its product lines to include 250 designer and prestige fragrances, including Chanel, Poison and Passion. The chain has also developed a glitzy cosmetic/fragrance service counter, now in place in 400 Kroger stores.

The revamped departments have been given a prime location in new Kroger stores, front and center on the main side-to-side power aisle across from the checkstands. A dramatic graphic overhang and neon signage add to the impact and the upscale appeal.

"Customers are showing their appreciation" for the new departments and the added selection," said Pichler. "Kroger fragrance sales rose 25 percent in 1989."

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