BEAUTY CARE

Credit Suisse: Front-end could prove challenging for drug channel

BY Michael Johnsen

NEW YORK — According to a Credit Suisse analysis of the drug channel published Wednesday, drug stores are in for a challenging winter across the front-end with an embattled consumer continuing to hold back and the continued proliferation of dollar stores that are attracting value-driven trips to their channel. 

"Drug store front-end sales growth, as reported by Nielsen, decelerated in the 4-week period ended Oct. 26 on flat price/mix and weaker volumes," wrote Ed Kelly, Credit Suisse research analyst. "Industry sales were up 0.7% for the period, down from the [plus] 1.8% seen last month and the prior six-month average of [plus] 1%," he said. 

In addition to a lessening consumer demand, volumes are also being impacted by difficult year-ago comparisons. 

"We remain concerned about the continued lackluster sales trends seen in the channel and expect front-end results to remain challenged by continued consumer weakness, the channel’s generally uncompetitive price position and increasing competition from value players," Kelly noted. 

While promotional levels across the drug channel are up vs. a year ago, they’re down sequentially, Kelly observed. "Products sold on promotion in the drug store channel was 36.6% of sales, down 46 basis points from the 37% seen last month and up 226 basis points year-over-year."

 

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Beiersdorf sees ‘significant’ growth in first nine months of 2013

BY Antoinette Alexander

HAMBURG, Germany — Skin care brand Beiersdorf reported that its consumer business segment achieved “significant, above-market sales growth” during the first nine months of 2013, with both Nivea and Eucerin enjoying a boost in sales.

Adjusted for the impact of foreign exchange differences, the company increased its sales by 7.3%. In nominal terms, sales increased by 2.4%, from €4.566 billion to €4.674 billion. Consolidated profit rose from €358 million to €433 million.  

The consumer business segment delivered organic sales growth of 6.9% in the first nine months of 2013, as nominal sales increased by 1.7%, from €3.816 billion to €3.883 billion.  

Nivea recorded organic sales growth of 7.3%. Eucerin generated an 11.1% increase in sales and La Prairie an increase of 5.4%.  

The company noted that it saw significant growth in the Americas region, where sales climbed by 11.7%.

As a result of the strong performance in the past months, the company lifted its forecast for full year 2013. The company is now aiming for group sales growth of 6% to 7%.

In the consumer business segment, Beiersdorf is now predicting sales growth of 6% to 7% for 2013, with market growth estimated at 3% to 4%.

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The maker of SensatioNail creates Fuse Gelnamel

BY Antoinette Alexander

ALISO VIEJO, Calif. — Pacific World, the maker of SensatioNail at-home gel polish, has unveiled the new Fuse Gelnamel — the next generation in nail color that brings together the best of polish and the best of gel.

The new Fuse Gelnamel features an all-in-one formula that delivers one-coat coverage from start to finish and a proprietary anti-chip technology that promises to provide megawatt shine that lasts, the company stated.

"Our high-powered, ultra-portable LED lamp allows nails to be done virtually anywhere. With the simple press of a button, the reflective interior cures Gelnamel in 30 seconds, while the groove on the inside promises proper placement under the LED bulb. It’s affordable and so simple, you’ll nail it and love it,” Melissa Kahane, Fuse senior marketing manager, said.

Fuse Gelnamel launches with six Starter Kits. Each kit contains the patent-pending Fuse LED Lamp, one Gelnamel shade, cleanser, manicure stick and nail buffer. The initial color line includes 12 shades.

Fuse can also be used on toes by lifting and removing the top portion of lamp and following the normal usage instructions.

To remove, use 100% acetone with the SensatioNail Gel Polish Removal Kit and Gel Polish Removal Tool.

Beginning January 2014, Fuse Starter Kits and individual Gelnamel colors will be available for $29.99 and $9.99, respectively, as well as the cleanser and wipe refill kit for $6.50.

 

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