Retailers apply new look to cosmetics, bath & body

Discount Store News,  August 4, 1997  

Tags: cosmetics, Revlon Inc.

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Seeking to create a lifestyle environment for cosmetics, Kmart introduced a new cosmetics department closer to the front of the store that features brighter lighting and more lifestyle/fashion signs. The retailer had identified this program, as well as bath and body, as important steps toward better serving its target customer.

The Big Three each expanded their color cosmetics departments, in many cases creating boutique presentations designed to attract a younger customer, and intended to expand the store's customer base.

ShopKo's Bath, Body, Etc. has been rolled out chainwide. The department features bath and body products in addition to lifestyle categories such as candles and candlesticks, sweet-smelling soaps, make-your-own-gift baskets and oil lamps. The department was created to challenge specialty stores including The Body Shop and Bath & Body Works.

Fragrances had another tough year, with discounters cutting back inventories for the holiday season. The culprit: nontraditional channels of distribution such as The Gap, Tower Records, Victoria's Secret and Bath & Body Works. These outlets have become sophisticated marketers of not only fragrances but other bath and body products.

Buying patterns have changed in fragrances as well. Instead of buying fragrances for themselves or as gifts, consumers have stepped up purchases of bath and body gift sets, aromatherapy products and gourmet food/beverage gift sets.

To combat slumping fragrance sales, aggressive ad campaigns will accompany this holiday's introductions. Coming from Revlon is the fragrance called She, backed by $10 million in ads. New from Coty is Cindy Adams' Gossip, Avatar for men and Healing Garden, marketed as a holistic, mood-altering fragrance. Coty will spend $6 million in print ads.

Aggressive on-pack couponing by the major cosmetic companies have provided incentives to consumers to sample some of the higher-end lip, nail and face products. Maybelline offered an instant coupon of $1.50 off its Great Wear product line; Revlon had two offers, which include $2 off any ColorStay product and a rebate offer where consumers who buy three ColorStay lip colors get a free ColorStay gift by mail; Almay went to market with its buy one Clear Complexion treatment or make-up product and save $2, or buy two and save $6.

Long-lasting cosmetics had staying power in 1996 as improvements in moisture levels in these transfer-resistant lipstick products proved a success. Particularly popular were L'Oreal's Colour Endure extended by 12 shades last September; Maybelline's new lip color line, Great Wear Budge-Proof Lips; and Revlon's ColorStay. This fall, Revlon is taking the ColorStay concept into hair care with a permanent cream-gel hair color available in 24 fade-resistant shades.

Revlon, Sally Hansen, Cosmar, Orly and Wet 'n'Wild brought fashion news to the nail color category with vibrant shades that ranged from pastels to camouflage colors to deep blues, greens and purples. Maybelline one upped the competition with its Express Finish Nails line, a fast-drying, long-wearing, chip-resistant polish first introduced in early 1996. Known originally as Great Finish, the moniker was changed in the first quarter of '96, and 20 shades were added boosting sku count to 42.

Artificial nails proved a real winner as interest in nail art surged driven by companies such as Fingers, Kiss and Nail Fetish. Nail Fetish from Cosmar, a division of Renaissance Cosmetics, is doing so well that the brand will be expanded into nail abrasives and nail color. Set to debut for holiday '97 is Fetish, a new fragrance targeted at the youth market.

Eye and lip pencils and liners have broadened their distribution with niche brands such as Nat Robbins, Jane and Naturistics making a strong showing on retail shelves. At the same time, many of the larger players have extended their lines into the eye pencil category including Cover Girl, Max Factor, L'Oreal, Wet 'n'Wild, Aromatic, Physician's Formula and this fall Maybelline's New Express lipstick and liner in one.

Cosmetics Productivity

Department size        871.7 sq. ft.
Sales per sq. ft.            $297.0
Turns                           2.64
Initial markup                 32.06%
Gross margin                   28.06%

COPYRIGHT 1997 Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.
COPYRIGHT 2008 Gale, Cengage Learning