Burning Brightly

Candles hold great potential in the supermarket channel for savvy grocers that can keep interest glowing.

"Everything old is new again," the saying goes. These words are certainly true when it comes to the candle and aromatherapy category.

Back when supermarkets were simple little general stores, candles were a mainstay of the shops' merchandise. In today's super food stores, the candle is still present, but no longer lighting the way for success among household nonfood items.

Sales in the category reached about $2 billion last year through all retail outlets, according to the Washington-based National Candle Association (NCA), whose research, gleaned from its candle manufacturer members, indicates that seven out of 10 U.S. households use candles, which in turn presents hot opportunities for retailers, especially supermarkets.

However, the candle category is no longer the same as it was even a couple of decades ago. The big impact on sales isn't made by candles used for light or even religious ceremonies; the sales leaders today are fragrance and aromatherapy candles that combine scents with home décor.

"The fragrance candle business is better than 95 percent of sales out there," says Mark Cunningham, VP of sales and marketing for Cincinnati-based Candle-Lite.

The vast array of scents and candle types gives a distinct advantage to other retail channels that can afford to offer more space to display the category. Candle sales typically are higher in department stores, specialty stores and mass retailers than in supermarkets.

"A lot of candle business has migrated to the mass channel, especially Walmart and Target," says an executive for a large candle manufacturer. "We believe that this is in part due to the departments in these stores being reinvented with innovative looks and displays. Candles are a category that you need to be innovative in, and many of the brand manufacturers are working with retailers to provide that innovation."

Tapering Off?

According to Chicago-based SymphonylRI, while sales in the candle and aromatherapy category were down about 5 percent across the board last year, sales in the food channel actually increased by 5 percent during that same time period. "We see tremendous opportunity in the food channel," the industry executive says. "They [supermarkets] have a tremendous audience, with the consumer walking through the store every week. They just have to attract their interest [in candles] and provide the product at a good price, which they generally do."

One demographic consideration generally in supermarkets' favor is that 90 percent of candles are purchased by women. This is another reason that supermarkets need to focus on the stress-reducing properties of candle scents, as well as the home décor element — in essence, making the candle section a lifestyle destination.

"There are far more candles sold in home décor and fragrance sections than in the household candle or chemical fragrance sections," says Candle-Lite's Cunningham. "The majority of supermarkets do have dedicated departments for home décor and fragrance; they are usually adjacent to a seasonal aisle, or cards and books, wine or even floral. I think the traditional way to merchandise the category is to have a dedicated space for it. A 4-foot gondola is the minimum that you need to do the category justice and have a representation of colors, fragrances and forms."

Cunningham says glass-filled candles represent about 70 percent of the total category; votives and tea lights also sell well. "If you can find adjacent space to the main display via an end cap, you can rotate out the candle products at intervals and change them seasonally," he says. "This gives the customer a reason to keep coming back."

The category is a seasonal business, with more than 30 percent of sales occurring from late August through Thanksgiving and on to New Year's Day. At this time of the year, candles can be cross-promoted with other seasonal products to create a festive home décor section for shoppers who will be entertaining and want to create a certain look in their homes. During this time, candles are also given as gifts, which is also the case for Valentine's Day.

Dollars and Scents

While candles have always been given as gifts or used as home décor when entertaining, the fastest-growing area of use is personal relaxation, stress reduction or fragrance. The aromatherapy aspect to candle sales has ratcheted up category sales, especially during off-peak periods; after all, aromatherapy is less costly for cash-strapped consumers than psychotherapy, and arguably less deleterious than wine and spirits.

As part of a lifestyle section, retailers should play up the aromatherapy and stress reduction properties of the category. Instead of touting scented candles as a means of deodorizing, the therapeutic aspects need to be pointed out to shoppers through signage and display.

Manufacturers are trying to reach consumers with candle products that don't just deliver pleasant scents, but also have the ability to actively involve the olfactory senses in relaxation.

Candle-Lite will introduce four new collections this spring, all of which have strong aromatherapy properties. One in particular, Destination Escape, uses essential oils and fragrances that have what the company describes as more depth to enhance the aromatherapy experience. The collection is touted as a "personal retreat" and is aimed at helping the user "Balance, Renew, Discover and Energize." Other new collections from Candle-Lite are All White, Fresh Fruit and Authentic Luxury.

"The candle section needs to be bolstered with promotions," says Cunningham, noting that manufacturers such as Candle-Lite are generally willing to help retailers promote the category. "In terms of display, we have off-shelf units that can be used for second placements, tower and spin displays that can be permanent or semi-permanent. We also offer supplemental corrugated in-and-out displays that can be used to test products and as a secondary or seasonal display."

Candles and aromatherapy products in the grocery channel are usually impulse purchases, but operators that set up dedicated sections, such as a mini store-within-a-store or a lifestyle boutique, have the most success in gaining repeat destination business. Promoting these sections is important to building awareness, especially among frequent candle users who would normally purchase aromatherapy products at department or specialty stores, but would be more likely to purchase them at the supermarket if it's more convenient and a better value.

Consumers, especially those interested in aromatherapy, actually use their candles, making these products consumables that need to be replenished often. Food retailers need to offer enough of a selection of products and promote their candle sections in a way that fosters top-of-mind recognition when these shoppers set out to make a candle purchase.

Just as shoppers automatically set off to the supermarket when they need to buy milk, eggs or toilet paper, they could be doing the same with candles. Proper attention will turn a supermarket's candle selection from a display housing one-time impulse buys to a department offering essential lifestyle products.

HOTSCENTS

Fragrance is by far the most important characteristic for candle purchase decisions. Indeed, 75 percent of candle buyers indicate that scent is "extremely important" or "very important" when selecting a candle, according to the National Candle Association (NCA). Pacing scent are color, cost and shape as the other key reasons consumers choose a particular candle. There's certainly no shortage of options for candle enthusiasts these days, however, in light of NCA's insights that find more than 10,000 candle scents available to U.S. consumers.

The majority of U.S. consumers use their candles within a week of purchase, indicating they're not static parts of home décor. —National Candle Association