In the Heat of The Action
On Tuesday, a beauty executive “between jobs” and this reporter braved the snowstorm and hit several stores in Manhattan. Little did we know, we put ourselves smack in the middle of the news.
The day started off at the Duane Reade in Herald Square where the beauty executive was wowed with what the chain has done with not only beauty, but convenience food as well. A well-informed store associate explained that all of the skin care lines are selling well, especially since they don’t duplicate each other.
Duane Reade’s Look Boutique here is spacious and well-stocked.
Unfortunately, on this particular day it is quiet due to the snowstorm, although a few customers shuffled through with one asking to be directed to the Cover Girl brand. That request brought to light that no matter how many upscale brands are carried, some customers just want the tried and true. The store is a testament to what can be done at mass. The one question that awaits an answer is if the store can support giving space to lines that might not be up to snuff from a productivity standpoint.
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From there, we journeyed across the street to Macy’s. Despite the snow, the beauty department was buzzing with excitement. In particular, MAC Cosmetics was busy with the launch of the new campaign staring Lady Gaga and Cyndi Lauper. We decided to check how the natural department at Macy’s, called Beauty Planet, was faring only to find out it was dismantled before Christmas. In its space, more room for men’s items. Men’s might just be the “new natural.”
In Macy’s, we took the time to do something those in the beauty business don’t always do — we played with cosmetics. We sampled Chanel eye gels, sniffed the cool Candy Apples from DKNY and basically acted like real shoppers for 20 minutes.
After trudging through the snow uptown, we came across our real news for the day. Trying to get to the beauty department at Walgreens in Times Square, we were told the “owner of Walgreens was doing a commercial.”
Once we got closer, we saw Greg Wasson, Walgreens’ president and chief executive officer, taping a video segment. We knew Walgreens was close to a possible purchase of Duane Reade. So there we were, right in the thick of things having just toured Duane Reade. What did we do? Did we jump in and ask hard questions of Wasson? No! We shopped and got 10 percent off our purchases because we had to wait for Wasson to finish!
We did agree that Walgreens can only benefit from ideas that will be culled from the beauty department at Duane Reade. Although this represents Walgreens’ Customer Centric Retail initiative, changes have been made since this store opened that detracted from beauty.
Meanwhile, both retailers could continue to learn from Sephora, our last stop. Sephora continues to have high-levels of service and tons of fun new items. My touring colleague especially liked a display of roller ball fragrances and an area that lined the checkout of portable and travel size products. We saw no reason why drugstore chains can’t add similar displays. It is true, shoppers don’t look at stores as mass or class anymore; maybe someday soon manufacturers will truly decide to break down the barriers and sell items where the consumers want to find them.
People, Place and Things
A few words with Greg Wasson, president and chief executive officer of Walgreens in regard to the purchase of Duane Reade
Wasson: “Duane Reade is a compelling strategic acquisition that will immediately provide Walgreens with a leading position in the largest drugstore market in the U.S. In addition, Duane Reade’s recent initiatives in urban retailing, customer loyalty and private brand products support and accelerate Walgreens strategy to enhance the customer experience in our network of more than 7,100 stores across the country.”
Wasson: “This transaction is consistent with the capital allocation objectives we outlined last fall, which included investing in strategic opportunities that reinforce the company’s core strategies and meet return requirements. By combining the strengths of our two companies, we can improve our position as the most convenient provider of consumer goods and services, and pharmacy, health and wellness services in the country.”
What’s In Store?
Rite Aid A Target: Walgreens’ acquisition of Duane Reade may make Rite Aid a more attractive acquisition target, speculated UBS analyst Neil Currie in a research note issued Thursday.
Pert Plus Adds To Lineup: Pert Plus announced the launch of two 3-in-1 products, one specially formulated to appeal to men, and one formulated to appeal to the whole family. The 3-in-1 multipurpose shampoo plus conditioner plus body wash formulas are designed to clean and condition both hair and skin.