Category advice

Healthcare icon
Healthcare

Market Insight

Healthcare is a growing category

People are suffering from more minor ailments and are increasingly being encouraged to self-medicate, partly to take the strain off the NHS

Healthcare is highly profitable

Average 30% POR

on medicines

Few promotions are run on medicines due to the nature of the products

Moving medicines from behind the counter onto the shop floor in case studies has proven to increase sales by

up to

40%

Healthcare in the impulse market is worth

£271m per year

That is the same value as the biscuits category and double the value of Hot beverages category.

(AC Nielsen, 52 weeks to 23/04/16)

Ideal for convenience channel

Sufferers will not travel far if not feeling well, so medicines are bought at the most convenient location

Easy to manage

Long shelf life and does
not take up much space
on shelf

Winter meds seasonality

Biggest uplifts for Cold & Flu and Cough Remedies, but many categories increase in the winter.

Winter meds seasonality graph

Winter 2014/2015 saw exceptionally high peak
in December. Winter season ran longer last year.

OTC Medicines

Winter Key Drivers of Growth
  • 1. Right Range

    OTC medicines: right range

    Shoppers in this channel have strong propensity to buy well known brands.
    Source J&J research

  • 2. Clear Layout

    OTC medicines: clear layout

    Group like products & categories together (Ideally dual stock Kids’ Medicine in the baby fixture).

  • 3. Off Shelf Display

    OTC medicines: off shelf display

    Moving medicines onto the shop floor proven to increase sales by 30 to 40%.

  • 4. Own Label

    OTC medicines: own label

    Whilst there is a strong tendency from consumers to buy brands, own label sell very well (top 2&3 volume lines) whilst also offering great value and exceptional margins.

Highlight products at key times of the year

In Winter (October – February), focus on colds & flu and sore throats.
In Summer (February – August), focus on hay fever/allergies and first aid, etc.

The timing of flu is very unpredictable and can vary in different parts of the country and from season to season

Seasonal flu viruses can be detected year-round; however, seasonal flu activity can begin as early as October and continue to occur as late as May.

The hay fever season is usually between February and August

1 in 5 people

1 in 5

people in the UK suffer from hay fever

Healthcare

Must Stock Lines

These are the ‘Must Stock’ lines which shoppers expect to see in a convenience store. By stocking these lines, you will be meeting your customers’ needs and therefore they will visit your store again.

We suggest you stock the following range:

Must stock lines pt1Must stock lines pt2Must stock lines pt3Must stock lines pt4
Healthcare

Planograms

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