Getting down to ‘Just the Basics’ pays off
Private-label penetration at CVS/pharmacy locations is expected to grow to more than 20% in the next two to three years, and to help drive that growth, the retailer has developed its new Just the Basics line of store-brand products.
Officially launched in February 2011, the brand represents a functional, value- priced, smart-simplicity positioning. It is comprised of nearly 100 items, and there are plans to expand the line going forward.
In developing the line, CVS/pharmacy conducted customer focus groups where it identified the need for an opening price point value brand. It then defined that the brand would consist of everyday essential products that would help get her through her day.
Just the Basics offers shoppers a large selection of practical items from a variety of categories throughout the store, including household, beauty, baby and personal care. The products start at 67 cents and can be found at store locations nationwide and online at CVS.com.
At CVS/pharmacy, store-brand and proprietary products made up 17.2% of front-store sales as of the second quarter ended June 30, up 70 basis points from the prior year, as shoppers remain value-conscious.