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NPD Group: Skin care, makeup drove growth in U.S. prestige beauty during first half of 2013

BY Antoinette Alexander

PORT WASHINGTON, N.Y. — The global prestige beauty market experienced mixed results in the first half of 2013 but the U.S. prestige beauty market posted an 8% gain during the first six months of the year, according to the NPD Group.

The U.S. prestige beauty industry generated $5 billion in the first six months of the year, an increase of 8%, the NPD Group stated. In Europe, the United Kingdom gained 6%, generating £803 million in prestige beauty sales, while France, Italy, and Spain continued to face challenges in this industry.

“Our expectation for 2013 was that the global prestige beauty industry would look similar to 2012, and the results thus far are proving this to be true, as economic uncertainties continue to weigh heavily on the European markets,” stated Karen Grant, VP and senior global industry analyst for the NPD Group.

Skin care and makeup were the primary drivers behind U.S. growth in the first half of 2013, with $1.8 billion, and $2 billion in sales, respectively. Fragrance performance was positive as well (+4%), at $1.1 billion, but at a slower pace than seen in the first six months of 2012 (+8%). In all three categories, premium-priced products contributed to increases in sales so far this year.

Despite declines in many countries, fragrance continues to account for the largest share of prestige beauty sales in Europe (U.K: 43%, France: 62%, Italy: 40%, Spain: 51%). However, makeup was the star performer, with strong gains in the United Kingdom, and a slight uptick in Spain. In terms of market share, Italy is the most level playing field, with each category representing close to a third of sales in the first half of the year.

“The similarities in retail distribution, brand assortment and product mix in the United States and United Kingdom continue to help both markets capitalize on positive trends. Though the results for these countries, compared to those in the Euro zone, look like ‘the tale of two markets’, there is one common thread: investment spending continues. The markets in the Euro zone face greater challenges, but, with the exception of Spain, most markets are continuing to show increases in average selling price across all categories. This tells us that while consumers may be cutting back in spending, they are continuing to invest in value, even when that may be at higher prices,” Grant stated.
 

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Former P&G exec Susan Arnold joins Carlyle Group as operating executive

BY Antoinette Alexander

NEW YORK — The Carlyle Group has hired former Procter & Gamble executive Susan Arnold as an operating executive in the Global Consumer & Retail group. Arnold begins her new role at the firm in September. 

As an operating executive, Arnold will provide strategic guidance to Carlyle professionals throughout the investment process, from sourcing to acquisition to exit and advise portfolio company executives on management, operational, branding and growth strategies.

Arnold joined P&G in 1980 and retired in 2009. Prior to serving as president of P&G’s $50 billion Global Business Unit, she held various positions within the firm, including vice chairman of Global Beauty Care and Health, and president of Global Personal Beauty and Global Feminine Care. She currently serves on the board of directors of Disney and McDonalds.

“We are pleased to welcome Susan to the Carlyle team following a remarkable 29-year career at Procter & Gamble. Susan’s depth and scope of strategic and operational experience in the consumer space will help us to create value in our existing portfolio and to make new promising investments,” stated Sandra Horbach, Carlyle managing director and head of the Global Consumer & Retail group.

The Consumer & Retail group has led Carlyle’s acquisition of numerous companies, including: Dunkin’ Brands, philosophy, NBTY and CVC.

 

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Walgreens announces enhanced Daily Living team of key marketing and merchandising execs

BY Jason Owen

DEERFIELD, Ill. — Walgreens on Wednesday announced an enhanced Daily Living business organization with the promotion and leadership expansion of key marketing and merchandising executives to further accelerate the company’s strategic growth drivers and advance its vision to be the first choice in health and daily living for everyone in America, and beyond.

The promotions and other changes in Walgreens Daily Living organization, which are effective Oct. 1, accompany the announcement today by Walgreens and Alliance Boots GmbH that Alex Gourlay, chief executive of Alliance Boots health and beauty division, has been named Walgreens executive vice president, president of customer experience and daily living. Reporting to Walgreens president and CEO Greg Wasson, Gourlay will lead the enhanced Walgreens Daily Living organization overseeing U.S. merchandising, marketing, customer insights, customer experience and daily living products and promotions.

“With our enhanced Daily Living and merchandising organization, combined with Alex Gourlay’s experience and expertise in global health and beauty, we are further expanding and complementing Walgreens already strong leadership team including Mark Wagner, president of operations and community management; Kermit Crawford, president of pharmacy, health and wellness; Graham Atkinson, our chief marketing officer and the creator of our 79-million member Balance Rewards loyalty program; and Sona Chawla, president of e-commerce and our omni-channel strategy,” said Wasson. “By combining the best marketing and merchandising practices of Walgreens and Alliance Boots, we are accelerating our ‘Well Experience’ strategy to step out of the traditional drug store format and create a truly differentiated experience for customers and patients.”

Today’s announcement includes a number of promotions and expansion of leadership roles of Walgreens Daily Living and merchandising executives:

  • Bryan Pugh becomes corporate vice president, U.S. merchandising program development and execution. As Walgreens continues to hone and expand transformational merchandise programs and prepares for further joint merchandise initiatives with Alliance Boots across beauty, personal care, health and wellness, Pugh’s newly created role will bridge operations and merchandising functions and oversee rollout of new merchandising initiatives to the field, including operating standards, cross-functional deployment and flagship rollout.
  • Moe Alkemade becomes group vice president, global sourcing. With his deep experience in developing and marketing consumer-packaged goods programs, Moe successfully led the restructuring and strong growth trajectory of Walgreens private brand portfolio, and established the foundation for Walgreens global sourcing capabilities. In his newly created role, Alkemade will focus on optimizing global sourcing and Daily Living buying synergies with Alliance Boots and AmerisourceBergen.
  • Shannon Curtin is promoted to group vice president and general merchandise manager of beauty. Curtin will accelerate development and growth of Walgreens beauty proposition and customer experience across the United States, particularly underserved U.S. markets, and collaborate with the Alliance Boots and global partnership teams in maximizing U.S. opportunities for the Boots beauty proposition.
  • Robert Tompkins is promoted to group vice president and general merchandise manager of health and wellness. Tompkins will accelerate development of innovative health-and-wellness products and programs for the U.S., collaborating with Alliance Boots and global partnership teams on joint program development.
  • Jim Jensen becomes divisional vice president and general merchandise manager of seasonal and general merchandise, providing high-level, single-accountability focus on seasonal daily living products and promotions that are a key driver in Walgreens monthly daily living sales.
  • Beth Stiller is promoted to group vice president of category planning, formats and innovation, and takes on an expanded role in merchandising with responsibility for category development, space planning, merchandise formats and program innovation, and private brands.
  • Linda Severin, formerly of Kroger, where she led the redevelopment of its private brand portfolio, joins Walgreens as divisional vice president of private brands, responsible for product development, brand management and program execution of Walgreens private brands.

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