New Beauty Competitors
The economy must be improving because nonbeauty retailers are once again flirting with cosmetics. In the Nineties, many apparel operators such as Ann Taylor and The Gap delved into beauty, especially fragrances.
The thought was that instead of forcing shoppers to visit other outlets for these needs, they could pick beauty items up along with a new garment.
The beauty of beauty was also that in a relatively short amount of space, retailers could get an attractive return on their investment. Many of these firms who got into beauty got out when business tightened. Others just brought beauty in on seasonal schedules.
Lately, however, there’s lots of activity in the business. The most recent announcement was that Payless would add cosmetics to its predominately shoe inventory. It certainly makes sense — buy a shoe and a foot cream. Better yet, a new pair of pumps with a lip plumper in a matching shade.
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Maesa Group is the creative force behind the launch which will include two collections, Zoe & Zac and Unforgettable Moments.
The alliance is a multiyear arrangement and will initially roll out to 1,500 stores. In addition to lip, nail and eye, there will be body items. Pricing will be very impulse driven — as low as $2.99. Payless has found shoppers are willing to buy more of the accessories it has added recently.
“Our shoppers have responded very positively to our initiatives to go beyond footwear and democratize fashion and design in accessories as well, and this is one step further to bring consumers beauty products,” said LuAnn Via, chief executive officer of Payless. “Our new beauty line will feature the latest ideas, colors, shimmers, scents and formulas in the beauty and body care category and give our customers additional items to complete their personal sense of style, as well as offer great gifting options — all a great price.”
Urban Outfitters, Forever 21, Victoria’s Secret and H&M are all retailers where the primary business isn’t beauty, but where beauty is becoming a bigger factor as all merchants look for ways to expand their register rings.
Food stores also are hoping, once again, to give beauty a try. Grocery stores have been in and out of love with beauty over the years. Now, chains such as H-E-B and Stop & Shop are turning to vendor help to get things churning. Specifically, H-E-B has a new men’s grooming department based on input from Procter & Gamble. H-E-B’s department is called the Men’s Zone and features 534 products. There are even touchscreens so men can learn grooming tips and uncover new items.
For retailers, such as drugstores and discounters, who have traditionally stocked beauty, the new contenders represent the call to ratchet merchandising and selection up a notch. In fact, a lesson can be learned from Wal-Mart, which has beefed up some health and beauty care departments it let lapse as the company has witnessed migration to other retailers. The company met with suppliers about reinstating items to keep customers from going to other stores, said Leon Nicholas, a director at consulting firm Kantar Retail who has spoken with manufacturers about the move. Wal-Mart is returning some health and beauty supplies, cereal, pet treats, soda and laundry detergent, Nicholas said. This could be a cautionary tale for retailers that cut back too far on beauty.
People, Place and Things
A few words with Chris Kramer, vice president of Sales for Quasar Light Therapy. Her firm is marketing light therapy products to retailers, such as Neiman Marcus, to consumers who want spa quality tools at home.
WWDBeautyNews: Why are we seeing this emerge as a new growth opportunity?
Kramer: “Fifteen years ago, estheticians and dermatologists realized the benefits of light therapy. After the FDA approved over-the-counter use for certain wavelengths, companies could go directly to consumers. Research has shown that red and infrared light can be effective in stimulating the production of collagen, diminishing the appearance of fine lines, wrinkles and shrinking enlarged pores, firming and toning skin, increasing blood flow and reducing inflammation, redness and clearing acne.”
WWDBeautyNews: What are advantages of Baby Quasar over the competition?
Kramer: “These include superior medical technology, a longer warranty than the competition and USA made products. People aren’t afraid to buy and actually a failing economy means growth for our sales. It cost less money to own the tool than to visit the spa and pay for the treatment.”
What’s In Store
Hard Candy Continues To Grow At Wal-Mart: The spring collection of Hard Candy items will hit Wal-Mart shelves in May. Included in the assortment will be Hot Smudge, an eyeliner and shadow packaged together and Welcome Matte, a pressed powder that eliminates unwanted shine.
Helen Of Troy Buys Pert And Sure: Helen of Troy Limited announced that it has entered into an agreement with Phoenix-based Innovative Brands, LLC, a portfolio company of Najafi Companies, to acquire the Pert Plus hair care and Sure antiperspirant and deodorant businesses from Innovative Brands.