Kroger sees opportunities in beauty

This summer Kroger increased its efforts in promoting its store branded beauty products. CEO David Dillon said Kroger sees health and beauty products as an "undeveloped area among store brands".  Mirra is Kroger's store branded line of cosmetics, shampoos, and other beauty products. Kroger has made store brands a high priority, saying the products build customer loyalty. Store brands also usually have bigger profit margins than national brands. Corporate brands account for 34 percent of Kroger grocery items sold and 26 percent of grocery revenue.  Currently there are fewer than 100 Mirra branded products but that number is up from 41 just three three months ago.  Kroger plans to introduce more Mirra branded items this fall, such as anti-wrinkle products with retinol-A and anticipates more new products next summer.  So far the product has not been marketed very heavily, only through in-store demonstrations and word-of-mouth.  However, Kroger will increase its marketing efforts this fall with national advertising inserts and coupons.  We will have to wait and see if consumers are willing to try store branded beauty products versus national brands.  Here is the link to the article. http://www.google.com/hostednews/ap/article/ALeqM5iq0GAe44yRxHH16-LbwDoFoHIHhgD9HIMOC80