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Baby accessories are big business, with dollar sales reaching $1.4 billion across the drug, food and mass channels last year, according to Information Resources Inc.

For a long time, mass merchants owned the category--a full 82 percent of baby accessories are sold in the mass channel. While mass merchants still outpace the other two channels in category gains, drug store are beginning to pay more attention to this profitable category.

"For a long time drug, retailers lagged behind the mass merchants in bringing in new products, extending their space and promoting the category," said Cynthia Neiman, executive vice president of marketing at Munchkin. "But now we are seeing drug accounts actively bringing in new products and making more of a statement with the category."

An increased focus on infant accessories makes sense; women of childbearing age are drug chains' target shoppers. "Drug chains are seeing the category as another way to target moms," said Kelly Gorsky, director of marketing at Avent. "Drug chains are broadening their sections and merchandising the category better."

Retailers have shown a willingness to bring in a better selection and raise the ceiling on prices in their sets. Rite Aid, for example, carries two intercoms in its 8-foot infant feeding and accessories section. Both retail for $24.99. The chain uses bright, colorful signage to highlight the section.

Munchkin's Neiman said drug retailers are also beginning to see infant accessories--particularly feeding--as an impulse purchase. Rite Aid merchandises "sippy cups" and car shades on a clip strip near the pharmacy. "One chain merchandises our Boo-Boo Buddies gel packs in the first aid aisle near the adhesive bandages," said Neiman.

Feeding is a must

Infant feeding products, which had sales of $483 million across all three retail channels last year, are a key segment of the category. Mass merchants own the majority (66.3 percent) of that business. Of course, mass merchants have more space to devote to the category. Many Wal-Mart stores, for example, designate a 4-foot section entirely to breast-feeding related products.

While drug stores can't give the category that kind of space, they can provide customers with a strong basic selection if they keep focused on weeding out slow-moving products and keeping their sections fresh.

One key area of growth is cups, which represent 24 percent of category sales, according to Avent's Gorsky. Gorsky said growth in cup sales has outpaced overall growth in the feeding segment. Dollar sales for the cup category were $112 million last year, according to Gorsky.

Gorsky said premium products have been a bright spot in the category overall. "Consumers may be spending less on themselves, but they're not as willing to cut corners when it comes to their children," she said. "The demographic for our products seem to be less price sensitive. Our sales have risen 65 percent in the last year."

Safety products fit near pharmacy

Baby care and safety accessories, which had dollar sales of $527 million across all three channels last year, showed an increase of 21.4 percent. Mass merchants and supermarkets saw most of the growth, but manufacturers say that there are opportunities for drug store Retailers--particularly when it comes to merchandising near the pharmacy.

Items such as thermometers and medication dispensers are key products for drug stores and are best merchandised near the pharmacy where pharmacists can explain how products work. Pharmacists have an opportunity not only to generate incremental sales, but promote safe dosing when they suggest that consumers who may be uncertain about proper dosing for children use a measuring device.

In addition, Nieman of Munchkin said baby products with safety features, such as the Safety Bath Ducky and White Hot Soft Bite Safety Spoons that indicate when water and food is too hot for baby, can be merchandised in a baby section and near the pharmacy. Products that help parents keep babies safe are a good fit for drug store baby care shelves.