1. Battling the Beauty Barrage
Merchandising Deck
Presented By:
Tiffany Hogan, Analyst
Brian Owens, Director
April 2015

2. Beauty at Drug Stores Building baskets and loyalty with beauty
Drug stores will always have an edge when it comes to convenience, but with elevated brands and experiences, they continue to attract prestige shoppers as they rationalize their store sets
CVS, Walgreens Boots Alliance, and Rite Aid each attract these shoppers by focusing on three core areas.
Expanding Formats
Personalized Services
Adding Exclusive Brands
Source: Kantar Retail analysis

3. Expanded Formats

4. Walgreens “LOOK Boutique”
New, engaging, high-end beauty shopper experience and approximately 4,500 sq. feet allocated in its flag ship stores
Source: Kantar Retail analysis and store visits

5. Walgreens “LOOK Boutique”
More space for exclusive brands and high end fashion accessories
Source: Kantar Retail analysis

6. Rite Aid’s Genuine Well-Being Format
Improved signage and incremental space for cosmetics
Source: Kantar Retail analysis and store visits

7. Rite Aid’s Genuine Well-Being Format More Display Allocated for Beauty & Personal Care
Source: Kantar Retail analysis and store visits

8. Personalized Services

9. Walgreens “LOOK Boutique
On site beauty ambassadors to help personalize regimens and make selections
Source:

10. CVS MinuteClinic New healthy beauty personalized consultations
Source: Kantar Retail analysis and retailer website

11. CVS Healthy Skincare Center
New category signage, products and clinical consultations
Source: Kantar Retail analysis and store visits

12. CVS Beauty
More category education and product benefits for health beauty conscious shoppers
Source: Kantar Retail analysis and store visits

13. CVS Beauty Club
17 million CVS beauty club members enable the retailer to offer personalized discounts to its loyalty members
Source: Kantar Retail analysis

14. Exclusive Brands

15. Walgreens
New broader assortment and displays for Boots No 7 global store brand
Source: Kantar Retail analysis and store visits

16. Rite Aid
Exclusive brands enable Rite Aid to delight the shopper with a quality beauty solution at an affordable price
Source: Kantar Retail analysis and store visits

17. CVS Health
CVS’ exclusive store brand, Nuance Salma Hayek, promotes the retailer’s prestige category and appeals to Hispanic shoppers
Source: Kantar Retail analysis and store visits

18. Beauty at Department Stores
Getting progressive with prestige
Prestige beauty has its roots in department stores, a channel facing steep competition from beauty specialists that offer a wider variety of prestigious brands, and drug and discounters who are starting to play in the prestige branding game.
To keep up and get ahead with shoppers in this trending category, department stores are chaning their game with three core strategies:
Improving Brand Assortment
Enhancing the Shopping Experience
Expanding Specialized Services
Source: Kantar Retail analysis

19. Improving Brand Assortment

20. Kohl’s
Store-wide campaign to increase national brands takes a strong focus in beauty
Source: Kantar Retail analysis and store photos

21. Sephora Inside JCPenney
The shop-in-shop concept imports brand equity from both Sephora and its assortment of prestige beauty brands into the JCPenney assortment
Source: Kantar Retail analysis and store visits

22. Enhancing the Experience

23. Kohl’s
A revamped and expanded beauty department highlights key brands and products with more prominent lighting and displays
Source: Kantar Retail analysis and store visits

24. Kohl’s
A revamped and expanded beauty department highlights key brands and products with more prominent lighting and displays
Source: Kantar Retail analysis and store visits

25. Kohl’s
A revamped and expanded beauty department highlights key brands and products with more prominent lighting and displays
Source: Kantar Retail analysis and store visits

26. Macy’s
The open-sell Impulse department encourages new brand exploration and product interaction
Source: Kantar Retail analysis and store visits

27. Expanding Specialized Services

28. Macy’s
Adding branded interaction with “experts” draws shoppers in for an experience, not just a purchase
Source: Kantar Retail analysis and store visits

29. JCPenney
Weekly beauty “happy hours” draw shoppers back to stores regularly
Source: Kantar Retail analysis and store visits

30. Bluemercury
A look inside Macy’s newly-acquired beauty specialist retailer
Source: Kantar Retail analysis and store visits

31. Bluemercury: A look inside
Wood floors, marble counters elevate the experience and blur the line between retailer and spa; Easy access displays allow for maximum exposure to product interaction
Floor
décor
helps
create
easy/inviting
atmosphere
Source: Kantar Retail analysis and store visits

32. Bluemercury: A look inside
Strong brand messaging draws shoppers in; Once inside, packaging takes a focus over signage, encouraging interaction.
Source: Kantar Retail analysis and store visits

33. Bluemercury: A look inside
Testers available for high-end products; Branded events and services entice shoppers to interact with both brand and retailer.
Source: Kantar Retail analysis and store visits

34. For further information please refer to
Contact:
Tiffany Hogan, Analyst
Brian Owens, Director T: T:
TiffanyHogan_KR
kantarretail