Wedding gift bag

Gift wrap deserves a bow. The category continues to grow steadily in all regions, report chains ranging from Longs Drug and Bartell in the West and Genovese on the East Coast to Snyder in the upper Midwest and Harco in the South.

Many drug chains are dressing up their gift wrap sections. Harco upgraded its American Greetings department last year. Longs Drug, which carries Hallmark and Ambassador, saw a dollar increase of around 7 percent in its gift wrap category in its stores in 1994.

Drug chains must fight for share of gift/party due to tough competition from mass merchants, food/drug and category killers. But convenience is the drug channel's edge.

It's our bag

One of the category's star performers is gift bags, along with the must-have tissue or shredded stuffing. On the market for a couple of years, bags just keep on growing with new sizes in the pipeline from major manufacturers.

Genovese buyer George Odonits reported that many of his stores have off-shelf spinner racks of gift bags "to keep up with the demand."

Gordon O'Reilly, vice president of merchandising at Bartell Drug, also noted that bags are the hottest thing in the gift wrap section, where he carries four sizes.

This year American Greetings is offering a new mini-bag line for fall, and is also going after gift givers of pre-recorded media with a line of six audio/video gift bag assortments.

The line, which will debut for Christmas, followed by an everyday line, will be available in different displays, including a clip strip to position near audio/video product.

Gift wrap designs reflect both the giver and the receiver. Odonits also noted that sport theme bags with motifs like baseball, golf and soccer are doing well at Genovese, which carries Hallmark products.

Manufacturers note that consumers still go for traditional wrap designs like a balloon motif, dinosaurs, kittens or "Happy Birthday," but many of today's consumers respond to special effects like prismatics or themes of either nature or glitz and glamour. Gibson's Don French, director of marketing, noted that his company's natural line, featuring nubby tissue with wood-like flecks, and its glitzy lines do well.

Other examples include American Greetings expansion of its metallic assortment and Hallmark/Ambassador's new looks-like-washed-denim tissue and boot motif bag. Hallmark also offers a new "tuck in" gift enclosure card, which inserts into a die-cut pocket in theme-shaped gift bags.

Carol Hallquist, general manager of gift wrap for Haumark, characterizes the latter as an example of a trend toward gift wrap expression individuality. There is also an impulse motive to the clever bag stuffings and gift wrap effects. "Customers are seeing it and trying it," added Odonits.

Roll and flat wrap are still the lion's share of gift wrap sales. Research by American Greetings for everyday wrap shows that roll wrap is 37 percent of total wrap, flat wrap 27 percent and bags 16 percent (other subcategories include gift enclosures, combo packs and package decorations).

A typical consumer is willing to pay premium prices for special occasion gift wrap, like a spouse's birthday or sister's wedding shower, but she may need value wrap for the dozen birthday parties her children attend in a year.

American Greetings targets this consumer trend with its tiered Smart Pricing concept, including value priced, core and premium products with special finishings.

Wraps for all budgets

Most chains leverage the desire of consumers to buy both premium and value gift wrap product. Snyder's buyer Ron Riviere noted, "We're finding acceptance at all levels' since consumers are responding to promotion as well as upscale offerings.

Genovese promotes value wrap occasionally in its store circular. Premium wrap is promoted not by price but with a value-added offer, such as a free giveaway with premium wrap purchase (examples in the past have included or a free Father's Day mug with the purchase of two rolls of premium gift wrap).

For many consumers, an everyday gift wrap purchase is much like a greeting card purchase. It is selected with a recipient in mind, and this requires shelf space to offer variety.

The American Greetings Revolving Pillar gift wrap display (which won a POPAI display award last year) appeals to the consumer's need for different wrap for different occasions. The Pillar's revolving design optimizes assortment in display space while signing orients the shopper: For Her, For Him, Weddings and other captions.

Hallmark and Ambassador also revitalized their gift wrap programs around a year ago to offer more dense and productive displays (Hallmark's core gift wrap line is called Gift Wrap 2000, Ambassador's line is Choices).

Another kind of consumer wants an easy solution that's bundled together, so Hallmark is offering a product to help the perplexed: The new Gift Box Ensemble from Hallmark/Ambassador, which includes a shrink-wrapped box, two sheets of tissue, a pull bow and gift card.

Besides everyday wrap, seasonal is a big driver for gift wrap. This Christmas, American Greetings is going for fans, collectors and legions of consumers who have a sense of humor with its new Elvis gift bag line and ornaments. An AG nostalgia offering for the holidays is its Coca-Cola gift bag line.

Hallmark/Ambassador has introduced its first seasonal musical gift bags using sound chips with tunes like "Take Me Out to the Ball Game." Seasonal product promises to get bigger yet. Gene Bailey, Harco's category manager for general merchandise, reported that although the overall gift wrap category is steady. "seasonal is where we try to maximize gift wrap sales."

RELATED ARTICLE: Who are chain drug's OTC shoppers?

72 percent own their homes; 28 percent rent

65 percent are married; 6 percent are divorced; 20 percent are single

68 percent are employed; 13.5 percent are retired

80 percent are white; 15 percent are black; 5 percent are hispanic

Percentages based on exclusive Drug Store News nationwide survey of 800 OTC consumers.