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Sports Medicine Supplies

The sports medicine market, estimated at $1.25 billion by the National Sporting Goods Association, is on a meteoric surge.

"It's hard to pinpoint any age group to target. Any type of person you can think of uses these products," said Mary Ann Largen, R.Ph., director of health services at a six-store Drug Emporium franchise in Charlotte, N.C., which has installed high-identity sports medicine departments in three of its stores.

Indeed, Largen believes that Med Emporium [the franchise group's durable medical equipment division] will drive Drug Emporium in the future. "Because we're assaulted by combos and mass merchants, and people can buy traditional drug store products just about anywhere, we know in our group that we have to find different niches to survive. DME as a niche isn't an easy-entry area, and, once we achieve, it'll be difficult for a lot of competitors to move in on us," Largen said.

The strategy is quickly winning the retail group customers from other drug stores. "Some of our best referrals for sports medicine customers are from pharmacists elsewhere because their stores don't have these products to meet people's needs," said Largen. "Bandage users become increasingly productive customers. If someone comes in to get a special back or carpal tunnel brace, most will also have their analgesic prescription filled. It's a one-stop shopping desire because we're all more time-starved than money-starved."

Drug Emporium's Med Emporium venture will reach nearly $1 million in sales in 1997, up from $250,000 in 1996, Largen said.

On a national basis, muscle/body support devices posted $185.4 million in sales in food-drug-mass outlets during the 52 weeks ended July 20, 1997, reports Information Resources Inc. That's a 4.3 percent dollar gain achieved on a 5.7 percent rise in units, to nearly 25 million.

However, advances were far from equal across the board. Drug copped a vast majority of the business, with $132.1 million in sales, but lagged badly in growth with a mere 0.1 percent uptick. Mass merchants registered $38 million in sales on a 17.8 percent dollar rise. Food stores stretched their category sales by 12.8 percent to $15.3 million.

None of these figures address sales of the true high-end braces, collars and other devices, which generally accrue to orthopedists, physical therapists, chiropractors, hospitals and home healthcare providers, as well as sales posted by sporting goods chains.

"It's time for drug stores to get more serious about this, whether it's a knee brace, carpal tunnel or another application," urged Curt Mueller, president of Mueller Sports Medicine, which sells into Walgreens and is seeking to build off its following among college teams and sporting goods stores. "The healthcare business in sports medicine is so phenomenal that drug chains are leaving money on the table if they don't."

Indeed, sources say drug chains earn 32 percent to 50 percent margins in this category, depending on the product. They note also that sporting goods retailers generate $300 per square foot from basic departments up to $600 at sports medicine shopping destinations.

No longer just for athletes

"Twenty-five years ago, consumers never heard of a sports doctor. Now, the big thing in California [where many trends are born] is to have a mobile phone, belong to a health club and visit a sports medicine clinic," Mueller added.

"Consumers are so educated now they can tell the difference in store between inferior and superior quality products. They can open a clamshell and know because they've played sports in school or went to a clinic.

"Wellness is a mission," said Herb Raschka, vice president of consumer health products at Mueller. "I would have these products near herbs and vitamins because people who work out also buy those." Mueller emphasizes its Velcro[R] and lace-up ankle brace, which retails between $15 and $20, and a wrap-around knee brace at $30 to $35.

Meanwhile, Becton-Dickinson leads the category with a 32.2 percent sales share in its Ace brand and a 24.1 percent share in its Bauer and Black brand, according to IRI; one brand has a fitness position and the other is more remedial. Yet Sal Mauceri, business director, said the company is moving to "redefine our category ... We have launched a number of unique products to provide relief from some debilitating conditions, such as carpal tunnel syndrome and arthritis.

At Futuro, the category's No. 2 brand with a 23.8 percent share, powered in part by its support hose, vice president of marketing J.D. Weir agreed that "the vast majority of consumption in this category is for people who want to stay active. Sports medicine is a misnomer. Sports is a segment, and sports overstates or misjudges the need. Retailers need to understand that these products are for people in their everyday lives, and extreme specialty items don't meet as wide a need as stores want."

Futuro repositioned its brand more than a year ago with packages that show people in active, everyday situations. It advertises aggressively and runs a pharmacist training program to help raise the category's profile. "The category has been undermarketed in the past," said Weir. "Products have looked generic on the shelf. Approximately one quarter of households use braces, but 50 percent could, based on their needs; only less than 5 percent use support hose for varicose veins or weak circulation, but about 1-in-5 could."

Merchandising decisions

Weir suggests that retailers use an Active Care display to help define the section and consumerize a sleepy category in drug chains. He points to Walgreens' efforts in educating pharmacists, Longs' category revamp and CVS's remerchandising and use of point-of-sale educational materials since the spring as positive efforts.

He also addressed an area of speculation in the category: What will happen to Futuro's line of medical support hosiery with Beiersdorf's pending acquisition, due to be official Jan. 1. One of Beiersdorf's subsidiaries is Beiersdorf-Jobst, which makes medical support hosiery and burn products, mostly for professional markets, such as medical-surgical supply stores. "It's fair to say the company is evaluating opportunities to work together more closely at retail, and that the support hosiery market is extremely underdeveloped. Futuro has historical strength with pharmacists and retailers. Jobst has strength with vascular surgeons and professionals," Weir said.

Retailers appear to be wrestling with their instincts to stay in a lower price tier rather than aggressively pursue the high end of this category covered by professionals.

Said Gerald Zlotnik, executive vice president of Medic Discount Drug in Cleveland, "Look at American Stores and MedMax. Everyone is dabbling to see what the potential of home healthcare is. I see a lot of upside potential when 80- and 90-year-old men are still playing tennis.

Due in part to his chain's home healthcare store-within-a-store concept, Medic has experienced a near 10 percent gain in sports medicine products this past year. Zlotnik has a four-person sales force plus therapists, fitters and billing-specialists to help consumers and sells items well in excess of $100.

As for the conventional displays, Zlotnik feels that no manufacturer has established a brand, though Ace has recognition. People come in and buy what we have. But, if people work out in gyms or are part of the X generation, they prefer a brand name that differentiates. What would happen if a designer came out with a line in this category?"

Besides Mueller, another brand trying to position off its strong sporting goods heritage is McDavid. McDavid offers a medical referral program in agreement with doctors, trainers and therapists and a product use guide to "help consumers make educated decisions at the shelf," said Barry Gauthier, vice president of sales. "Medical pros are referring consumers to the retail marketplace [due to changes in insurance billing practices], and the drug store quick-fix approach doesn't address the increasing complexity of people's injuries. We see an opportunity for more technical products in drug stores that retail for about $40."

Walgreens devotes 12 feet near the pharmacy to about 120 SKUs of sports bandages priced at $5 to $30. Pegs from knee to shoulder height display Rubbermaid imports, Mueller, Tru-Fit, Ace, Dome, Bauer and Black and Futuro. Across the top of the gondola are heating pads and massagers up to $59.99 from Sunbeam, Dr. Scholl's, Conair and private label; across the bottom are lower-priced massagers up to $29.99 from Conair and Homedics.

The chain's variety is a mix of one-size-fits-all and specific-fit products. The obvious appeal to retailers of one-size-fits-all is the efficient assortment, which saves space and inventory dollars. Tru-Fit and Ace are the biggest advocates of this principle, with Tru-Fit expanding its offerings this year at American, Eckerd and Walgreens.

Dome Industries shows shelf efficiency in a different way -- with SelfGrip self-adhering tape, which does double duty as an athletic wrap and a racquet or golf club grip. It stays in place when wet and brings color and visual interest to the display. Its Handeze therapeutic support gloves address repetitive stress injury.

Said Drug Emporium's Largen, whose sports medicine venture is professional with fitters, nurses, billing specialists and rehabilitation specialists, "People will trade up if they feel an item will do more for them and they trust the person guiding them. They'll go from an $8 bandage to a $25 physiotherm, or they'll pay more for something adjustable that they can wear when injured and swollen, and later on as a support preventative."

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