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Chains and specialist stores account for over 41% of the Polish cosmetics market

The aggressive expansion of the chains, combined with the development of supermarkets and discount stores across the country, is leading to a shrinking number of traditional stores.

GENERAL MERCHANDISE

Chains and specialist stores account for over 41% of the Polish cosmetics market

The aggressive expansion of the chains, combined with the development of supermarkets and discount stores across the country, is leading to a shrinking number of traditional stores.

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”, 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, whose number and market share is reducing 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.

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