Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
Issue link: https://sct.epubxp.com/i/122387
r e T a i l i n g T o d a y Upscale beauty sales on the rebound The global prestige beauty industry, which encompasses goods traditionally sold in department stores, ended the year with mixed sales results, according to consulting firm The NPD Group. The U.S. prestige beauty industry posted a seven percent year-on-year gain in 2012, generating $10.2 billion, compared to an 11 percent increase in 2011. On the other hand, challenging economic conditions contributed to sales declines of TV's Jersey Shore — introduced her fragrance at the Las Vegas Premium Outlets store last year. "We are [typically] a 1,200-square-foot store, which might not be a huge presence, but in the broader scheme of things, we are adding value to a center with these celebrity appearances, as well as the new design aesthetic of our stores," said Richter. Perfumania's new stores feature a black-and-white decor, streamlined displays and a rotating wall with LED lights that change color. This design is even being incorporated as a remodel of some of the existing stores. "Shoppers frequently comment on the great new look of Perfumania at Chicago Ridge Mall as compared to its previous southwest Chicago location," said Alysia Gordon, Chicago Ridge Mall's marketing director. Perfumania joined the mall last summer as part of a renovation there that added about a dozen new and remodeled stores. "Perfumania provides an incredible assortment of fragrances and fantastic customer service to millions of annual Chicago Ridge Mall shoppers." Perfumania likes high-traffic regional malls and outlet centers, the latter of which have proved to be a success for the retailer. Outlets 84 SC T / M a y 2 0 1 3 are generating the highest sales per square foot for the company, with the average being about $700 in sales per square foot — about $100 more than at enclosed malls. "Our strategy is to increase our footprint in as many best-in-class outlet projects that meet our expansion criteria [as possible]," said Richter. The company opened 10 outlet center stores last year, including one in the Outlets at Traverse Mountain, in Lehi, Utah. "Perfumania is a brand that complements the Outlets at Traverse Mountain on all levels," said Heather Nash, the center's marketing director. "It is a bright, upscale and value-driven store." The company likes its stores to measure about 1,200 square feet with at least 20 feet of frontage, which allows for sufficient display space and for selling on both sides of the store. Perfumania seeks great visibility with plenty of foot traffic, near the highest-volume anchors and near other tenants within the beauty segment. As Richter put it: "We like to be on the 50-yard line on Main and Main." SCT across many European countries, the firm reports. Annual 2012 sales growth in the U.S. was driven primarily by skincare, which generated $3.4 billion. Makeup had the second highest sales gains, generating $3.8 billion, followed by fragrance at $2.9 billion. Premium-priced products in all U.S. beauty categories prevailed in the dollars gained in 2012. In Europe skincare sales were down two percent year-on-year. Driven by strong sales in the U.K., makeup was the only category to grow, at 2 percent. "Moving into 2013, we can expect premium products to again be a shining light even in Europe," said Karen Grant, vice president and senior global industry analyst, The NPD Group. "In fragrance, eau de parfums are outperforming in most geographies thanks to the strength of 'couture' designer brands. In makeup, alternative brands join designer and makeup artist brands in expanding the offerings in foundations and in color categories, such as innovations in lip products. In skincare, new sub-categories are gaining importance as high-end cosmetic devices, such as sonic cleaning in the U.S. make a mark. There continue to be For leasing, contact Jason Richter, vice president of real estate, at jrichter@ perfumania.com. advancements in anti-aging, which is now offered with brightening and complexion solutions." — BMT