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Cosmetics Stores Account for More Than 41% of the Cosmetics Market in Poland Finds PMRCorporate - Cosmetics stores are the largest distribution channel for cosmetics in Poland. According to estimates presented in PMR’s latest report entitled “Retail market of cosmetics in Poland 2012. Market analysis and development forecasts for 2012-2014”
Cosmetics Stores Account for More Than 41% of the Cosmetics Market in Poland Finds PMRCorporate

 

PRZOOM - /newswire/ - Cracow, Malopolskie, Poland, 2012/03/14 - Cosmetics stores are the largest distribution channel for cosmetics in Poland. According to estimates presented in PMR’s latest report entitled “Retail market of cosmetics in Poland 2012. Market analysis and development forecasts for 2012-2014”.

   
 
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this channel contributed 41.2% of sales generated by the market as a whole. The segment is composed of two channels – one is chains, headed by the market leader Rossmann, which are quickly gaining in significance, and the other is represented by traditional beauty stores, which are managing worse and worse, while their number and market share is waning every year.

Chains of cosmetics stores are now the fastest growing distribution channel. The drivers behind the channel’s growth include the increasing number of stores run by individual chains – in particular Rossmann – which last year opened 100 new outlets. In addition, cosmetics store chains have increased per store sales. The chains lure customers with good prices, frequent promotions, a wide assortment of medium price segment goods and a helpful staff. Furthermore, they are conveniently located: in shopping centres, main streets and high traffic areas, where customers can shop on the way to wherever they are going while not having to visit a special place.

According to PMR’s estimates, in 2011 the sales of cosmetics within the channel exceeded PLN 7.8bn, which is an increase of 11% compared to the year before. This indicates that the share of cosmetics stores in the Polish cosmetics market grew to 41.2% in 2011.

The driving force for the channel are the fast growing cosmetics store chains, led by Rossmann. Over the last five years, retail chains have doubled the value of their cosmetics sales, at the same time increasing their share in the entire market from 20.9% in 2007, to over 34.2% in 2011.

The aggressive expansion of the chains, combined with the development of supermarkets and discount stores across the country, is leading to the shrinking number of traditional stores, as they cannot compete with such strong players. As a result, between 2007 and 2011 more than 1,500 independent cosmetics stores disappeared from the market and their share in the market dropped to 7% in 2011.

Consequently, PMR expects that in 2012 sales in chains will increase by another 16% to PLN 7.6bn, while sales of cosmetics in the segment of cosmetics stores as a whole will expand by approximately 10%, to PLN 8.6bn.

Due to the fact that traditional stores which join the franchise chain usually record lower revenues than the stores already operating within the chain, the growth in sales will not be as dynamic as it could be judged from the number of the newly integrated stores.

In the coming years, cosmetics store chains will further consolidate their position at the cost of independent stores, which – unable to compete – will increasingly join chains or close down. According to PMR’s predictions, the share of chain stores in the total number of all cosmetics stores will rise from the current level of 35% to 52% in 2013.

This press release is based on information contained in the latest PMR report entitled “Retail market of cosmetics in Poland 2012. Market analysis and development forecasts for 2012-2014”.

 
 
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Cosmetics Stores Account for More Than 41% of the Cosmetics Market in Poland Finds PMRCorporate

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