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Beauty Retailing - Europe - January 2011

The 2011 Mintel report series on Beauty Retailing in Europe covers the beauty market in six countries, France, Germany, Italy, the Netherlands, Spain and the UK. This data in its entirety is contained in the single copy six-country report, which gives a full overview of beauty retailing in these markets. Single country reports are also available for the UK, France, Germany, Spain and Italy.

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Table of contents

  1. Market in Brief

    • Market size and performance
      • Specialists’ retail sales
        • Channels of distribution
          • The European competitive landscape
            • Outlook for beauty retailing
            • European Summary and Outlook

              • Report scope
                • Beauty retailing
                  • Sources
                    • Abbreviations
                      • Technical notes
                        • Financial definitions
                          • Currencies
                            • Country codes
                              • Figure 1: Country codes
                            • VAT
                              • Figure 2: Europe: Standard VAT rates, 2009
                            • Beauty market size and trends
                              • Germany and France most robust
                                  • Figure 3: Europe: Spending on personal care products by country, 2005-09
                                • UK leads in per-capita spending
                                    • Figure 4: Europe: Per capita spending on personal care goods products, by country, 2009
                                  • Skin care attracts biggest spend
                                      • Figure 5: Europe: Spending on selected personal care goods categories by country, 2009
                                    • Spending growth by category
                                        • Figure 6: Europe: % growth in spending on fragrances and hair care, by country, 2009
                                        • Figure 7: Europe: % growth in spending on skincare and colour cosmetics, by country, 2009
                                      • Health and beauty specialists
                                        • Health and beauty specialists’ performance
                                          • Figure 8: European health and beauty specialists: Sector sales, by country, 2005-10 (e)
                                        • Focusing on beauty specialists
                                            • Figure 9: European beauty specialists: Sector sales, by country, 2005-09
                                          • Retail competitor analysis
                                              • Figure 10: Leading European beauty specialists’ sales, 2007-09
                                            • Sector concentration
                                              • Figure 11: Concentration of health & beauty specialists sector, by country, 2009
                                              • Figure 12: Concentration of drugstore and beauty sector by country, 2009
                                            • Consumer data
                                              • Figure 13: Agreements with selective lifestyle statements relating to personal appearance and products, by country, 2009
                                            • German consumers are most image conscious
                                                • Figure 14: Top five product-related statements, Germany, 2009
                                              • French consumers are less concerned with image
                                                  • Figure 15: Top five product-related statements, France, 2009
                                                • Quality and brands matter to Spanish consumers
                                                    • Figure 16: Top five product-related statements, Spain, 2009
                                                  • British consumers are less brand conscious
                                                      • Figure 17: Top five product-related statements, GB, 2009
                                                    • European outlook
                                                      • Health and beauty sector sales forecasts
                                                          • Figure 18: European health and beauty retailing: Sector sales forecasts, 2011 and 2015
                                                        • Where next?
                                                          • Squeeze on consumers begins in earnest
                                                            • Further own label development
                                                              • Ethical and other niche areas…
                                                                • …and more economy lines in the short term?
                                                                  • ‘Ethnic’ beauty
                                                                    • Online potential
                                                                    • France

                                                                      • Market in brief
                                                                        • Broader market environment
                                                                          • Key points
                                                                            • Implications for beauty retailers
                                                                              • Competitive context
                                                                                • Key points
                                                                                  • Health and beauty market
                                                                                    • Definitions
                                                                                      • Personal care lags behind
                                                                                        • Figure 19: France: Consumer spending, growth in main categories, 2005-09
                                                                                        • Figure 20: France: Consumer spending on personal care and other selected categories, 2005-09
                                                                                      • Product market breakdown
                                                                                        • Figure 21: France: Consumer spending on personal care, by major category, 2009
                                                                                      • Resilient demand drives inflation
                                                                                        • Figure 22: France: Consumer prices for personal care categories, 2002-10
                                                                                      • Sector size and forecast
                                                                                        • Key points
                                                                                          • Economic outlook
                                                                                            • Retail sales
                                                                                              • Figure 23: France: Health & beauty specialists, retail sales, 2005-10
                                                                                            • Health & beauty retailers’ prospects
                                                                                              • Figure 24: France: Health & beauty specialists’ retail sales forecasts, 2010-15
                                                                                            • Enterprise data
                                                                                              • Figure 25: France: Health & beauty specialists, enterprise data, 2003-07
                                                                                            • Channels of distribution
                                                                                                • Figure 26: France: Personal care goods, spending by channel of distribution, 2009
                                                                                              • Retail competitor analysis
                                                                                                • Key points
                                                                                                  • Robust sector
                                                                                                    • Yves Rocher leads the way
                                                                                                      • Continued growth at Sephora
                                                                                                        • Marionnaud finally set for improvement?
                                                                                                          • Strong performance at Nocibé
                                                                                                            • Mixed performance for the German players
                                                                                                              • Figure 27: France: Leading beauty retailers, 2009/10
                                                                                                            • Market shares
                                                                                                              • Figure 28: France: Beauty retailers’ market shares, 2009
                                                                                                          • Germany

                                                                                                            • Market in brief
                                                                                                              • Broader market environment
                                                                                                                • Key points
                                                                                                                  • Implications for beauty retailers
                                                                                                                    • Competitive context
                                                                                                                      • Key points
                                                                                                                        • Personal care spending
                                                                                                                          • Figure 29: Germany: Consumer spending on personal care and other selected categories, 2005-09
                                                                                                                        • Low prices for beauty goods
                                                                                                                            • Figure 30: Germany: Consumer price indices for selected personal care products categories, 2001-09
                                                                                                                          • Product market breakdown
                                                                                                                            • Figure 31: Germany: Consumer spending on personal care, by major category, 2009
                                                                                                                          • Sector size and forecast
                                                                                                                            • Key points
                                                                                                                              • Economic outlook
                                                                                                                                • Retail sales
                                                                                                                                    • Figure 32: Germany: Health and beauty retailers’ sales, 2005-10
                                                                                                                                    • Figure 33: Germany: Health and beauty retailers’ sales, 2005-09
                                                                                                                                  • Health & beauty retailers’ prospects
                                                                                                                                      • Figure 34: Germany: Health and beauty retailers’ sales, 2010-15 (f)
                                                                                                                                    • Outlet and enterprise data
                                                                                                                                      • Figure 35: Germany: Number of retail enterprises, 2004-08
                                                                                                                                      • Figure 36: Germany: Number of outlets, 2005-08
                                                                                                                                    • Channels of distribution
                                                                                                                                      • Drugstores dominate the beauty market
                                                                                                                                        • Perfumeries led by Douglas
                                                                                                                                          • Grocers gain share thanks to Schlecker’s crisis
                                                                                                                                            • Department stores in decline
                                                                                                                                              • Others
                                                                                                                                                • Retail competitor analysis
                                                                                                                                                  • Key points
                                                                                                                                                    • Schlecker’s dominance being eroded
                                                                                                                                                      • dm in second place
                                                                                                                                                        • Dynamic Rossmann
                                                                                                                                                          • Müller lagging a little, but still outperforming Schlecker
                                                                                                                                                            • Douglas dominates in perfumery
                                                                                                                                                              • Budnikowsky, a regional player
                                                                                                                                                                • Figure 37: Germany: Leading beauty retailers, 2009/10
                                                                                                                                                              • Market shares
                                                                                                                                                                • Figure 38: Germany: Leading beauty retailers’ market shares, 2009
                                                                                                                                                            • Italy

                                                                                                                                                              • Market in brief
                                                                                                                                                                • Broader market environment
                                                                                                                                                                  • Key points
                                                                                                                                                                    • Implications for beauty retailers
                                                                                                                                                                      • Competitive context
                                                                                                                                                                        • Key points
                                                                                                                                                                          • Health and beauty spending
                                                                                                                                                                              • Figure 39: Italy: Consumer spending on personal care and other selected categories, 2005-09
                                                                                                                                                                              • Figure 40: Italy: Consumption of cosmetics and toiletries products, 2005-09
                                                                                                                                                                              • Figure 41: Italy: Consumer spending, compound annual growth rate for major consumer goods categories, 2005-09
                                                                                                                                                                            • Spending breakdown
                                                                                                                                                                              • Figure 42: Italy: Consumer spending on personal care by major category, 2009
                                                                                                                                                                            • Consumer price inflation
                                                                                                                                                                              • Figure 43: Italy: Year-on-year annual consumer price inflation, 2000-09
                                                                                                                                                                              • Figure 44: Italy: Year-on-year monthly consumer price inflation for selected categories, Nov 2009-Oct/Nov 2010
                                                                                                                                                                            • Sector size and forecast
                                                                                                                                                                              • Key points
                                                                                                                                                                                • Economic and consumer outlook
                                                                                                                                                                                  • Retail forecasts
                                                                                                                                                                                      • Figure 45: Italy: Health and beauty retailers’ sales, 2005-15 (f)
                                                                                                                                                                                    • Beauty specialists’ sales
                                                                                                                                                                                      • Enterprise numbers
                                                                                                                                                                                        • Figure 46: Italy: Health and beauty retail enterprises, by sector, 2004-07
                                                                                                                                                                                      • Channels of distribution
                                                                                                                                                                                        • Figure 47: Italy: Cosmetics and toiletries market, estimated channels of distribution, 2005-09
                                                                                                                                                                                      • Health and beauty specialists
                                                                                                                                                                                        • Grocery retailers
                                                                                                                                                                                          • Department stores and other mixed goods retailers
                                                                                                                                                                                            • Non-store
                                                                                                                                                                                                • Figure 48: Italy: Specialist beauty members of the direct selling association, 2009/10
                                                                                                                                                                                              • Retail competitor analysis
                                                                                                                                                                                                • Key points
                                                                                                                                                                                                  • Leading specialists
                                                                                                                                                                                                    • Acqua & Sapone drugstores
                                                                                                                                                                                                      • Limoni perfumery
                                                                                                                                                                                                        • Sephora
                                                                                                                                                                                                          • Douglas perfumery
                                                                                                                                                                                                            • Schlecker drugstores
                                                                                                                                                                                                              • Bottega Verde herbalist
                                                                                                                                                                                                                • La Gardenia perfumery
                                                                                                                                                                                                                  • Figure 49: Italy: Leading beauty retailers, 2009/10
                                                                                                                                                                                                                • Market shares
                                                                                                                                                                                                                  • Figure 50: Italy: Leading beauty retailers’ estimated market shares, 2009
                                                                                                                                                                                                              • Netherlands

                                                                                                                                                                                                                • Market in brief
                                                                                                                                                                                                                  • Key points
                                                                                                                                                                                                                    • Broader market environment
                                                                                                                                                                                                                      • Key points
                                                                                                                                                                                                                        • Implications for beauty retailers
                                                                                                                                                                                                                          • Competitive context
                                                                                                                                                                                                                            • Key points
                                                                                                                                                                                                                              • Health and beauty spending
                                                                                                                                                                                                                                  • Figure 51: Netherlands: Consumer spending on personal care and other selected categories, 2005-09
                                                                                                                                                                                                                                  • Figure 52: Netherlands: Consumer spending, compound annual growth rate for major consumer goods categories, 2005-09
                                                                                                                                                                                                                                • Spending breakdown
                                                                                                                                                                                                                                  • Figure 53: Netherlands: Consumer spending on personal care by major category, 2009
                                                                                                                                                                                                                                • Consumer price inflation
                                                                                                                                                                                                                                  • Figure 54: Netherlands: Year-on-year annual consumer price inflation, 2000-09
                                                                                                                                                                                                                                  • Figure 55: Netherlands: Year-on-year monthly consumer price inflation for selected categories, Nov 2009-Oct/Nov 2010
                                                                                                                                                                                                                                • Sector size and forecast
                                                                                                                                                                                                                                  • Key points
                                                                                                                                                                                                                                    • Economic and consumer outlook
                                                                                                                                                                                                                                      • Retail forecasts
                                                                                                                                                                                                                                          • Figure 56: Netherlands: Health and beauty retailers’ sales, 2005-15 (f)
                                                                                                                                                                                                                                        • Enterprise and outlet numbers
                                                                                                                                                                                                                                          • Figure 57: The Netherlands: Number of retail enterprises, 2006-09
                                                                                                                                                                                                                                          • Figure 58: The Netherlands: Number of retail outlets, 2006-09
                                                                                                                                                                                                                                        • Channels of distribution
                                                                                                                                                                                                                                          • Figure 59: The Netherlands: Beauty and toiletries, channels of distribution, 2009 (est.)
                                                                                                                                                                                                                                          • Figure 60: The Netherlands: Members of home shopping trade association listed as health and beauty retailers, 2010
                                                                                                                                                                                                                                          • Figure 61: The Netherlands: Direct selling companies specialising in health and beauty products, 2009/10
                                                                                                                                                                                                                                        • Retail competitor analysis
                                                                                                                                                                                                                                          • Key points
                                                                                                                                                                                                                                            • Leading specialists
                                                                                                                                                                                                                                              • A.S. Watson
                                                                                                                                                                                                                                                • DA
                                                                                                                                                                                                                                                  • Etos
                                                                                                                                                                                                                                                    • Schlecker
                                                                                                                                                                                                                                                      • Douglas Perfumery
                                                                                                                                                                                                                                                        • Others
                                                                                                                                                                                                                                                            • Figure 62: The Netherlands: Leading beauty retailers, 2009/10
                                                                                                                                                                                                                                                          • Market shares
                                                                                                                                                                                                                                                            • Figure 63: Netherlands: Leading beauty retailers’ estimated market shares, 2009/10
                                                                                                                                                                                                                                                        • Spain

                                                                                                                                                                                                                                                          • Market in brief
                                                                                                                                                                                                                                                            • Broader market environment
                                                                                                                                                                                                                                                              • The economy
                                                                                                                                                                                                                                                                • Implications for beauty retailers
                                                                                                                                                                                                                                                                  • Competitive context
                                                                                                                                                                                                                                                                    • Key points
                                                                                                                                                                                                                                                                      • Personal care shows its resilience
                                                                                                                                                                                                                                                                        • Figure 64: Spain: Consumer spending, growth in main categories, 2006-09
                                                                                                                                                                                                                                                                        • Figure 65: Spain: Consumer spending on personal care and other selected categories, 2006-09
                                                                                                                                                                                                                                                                      • Product market breakdown
                                                                                                                                                                                                                                                                        • Figure 66: Spain: Consumer spending on personal care, by major category, 2009
                                                                                                                                                                                                                                                                      • Deflationary pressures beginning to emerge
                                                                                                                                                                                                                                                                          • Figure 67: Spain: Prices of personal care compared with selected other categories, 2002-09
                                                                                                                                                                                                                                                                        • Sector size and forecast
                                                                                                                                                                                                                                                                          • Key points
                                                                                                                                                                                                                                                                            • Economic outlook
                                                                                                                                                                                                                                                                              • Retail outlook and forecasts
                                                                                                                                                                                                                                                                                • Figure 68: Spain: Health and beauty retailers’ sales, 2005-10
                                                                                                                                                                                                                                                                              • Outlook for beauty retailers
                                                                                                                                                                                                                                                                                • Figure 69: Spain: Health and beauty retailers’ sales forecasts, 2010-15
                                                                                                                                                                                                                                                                              • Enterprise and outlet numbers
                                                                                                                                                                                                                                                                                • Figure 70: Spain: Retail enterprises, 2005-09
                                                                                                                                                                                                                                                                                • Figure 71: Spain: Retail outlets, 2005, 2007 and 2009
                                                                                                                                                                                                                                                                              • Channels of distribution
                                                                                                                                                                                                                                                                                  • Figure 72: Spain: beauty and toiletries market, retail channels of distribution, 2009
                                                                                                                                                                                                                                                                                • Retail competitor analysis
                                                                                                                                                                                                                                                                                  • Key points
                                                                                                                                                                                                                                                                                    • Sector sales contract
                                                                                                                                                                                                                                                                                      • Schlecker belies the slowdown
                                                                                                                                                                                                                                                                                        • Mixed performance from the foreign players
                                                                                                                                                                                                                                                                                          • Arenal shows it flexibility
                                                                                                                                                                                                                                                                                            • Building scale to ensure survival
                                                                                                                                                                                                                                                                                              • Buying groups
                                                                                                                                                                                                                                                                                                • Non-specialists under pressure
                                                                                                                                                                                                                                                                                                  • Figure 73: Spain: Leading beauty retailers, 2009/10
                                                                                                                                                                                                                                                                                                • Market shares
                                                                                                                                                                                                                                                                                                  • Figure 74: Spain: Leading beauty retailers’ market shares, 2009
                                                                                                                                                                                                                                                                                              • UK

                                                                                                                                                                                                                                                                                                • Issues in the market
                                                                                                                                                                                                                                                                                                  • Main themes
                                                                                                                                                                                                                                                                                                    • Definitions
                                                                                                                                                                                                                                                                                                      • Sources
                                                                                                                                                                                                                                                                                                        • Abbreviations
                                                                                                                                                                                                                                                                                                          • Future opportunities
                                                                                                                                                                                                                                                                                                            • Trend: No More Mainstream
                                                                                                                                                                                                                                                                                                              • Trend: Re-teching the Past
                                                                                                                                                                                                                                                                                                                • Market in brief
                                                                                                                                                                                                                                                                                                                  • Spending on personal care set to outperform all retail sales
                                                                                                                                                                                                                                                                                                                    • Consumer context
                                                                                                                                                                                                                                                                                                                      • Mixed results from the specialists
                                                                                                                                                                                                                                                                                                                        • Channels of distribution – department stores lose out in 2009 but bounce back in 2010
                                                                                                                                                                                                                                                                                                                          • Internal market environment
                                                                                                                                                                                                                                                                                                                            • Key points
                                                                                                                                                                                                                                                                                                                              • Consumers continue to seek value
                                                                                                                                                                                                                                                                                                                                • Own brands
                                                                                                                                                                                                                                                                                                                                  • Buying loyalty
                                                                                                                                                                                                                                                                                                                                    • Extra beauty spending a low priority
                                                                                                                                                                                                                                                                                                                                        • Figure 75: Trends in what extra money is spent on, November 2009 and November 2010
                                                                                                                                                                                                                                                                                                                                      • Online
                                                                                                                                                                                                                                                                                                                                        • In-store innovation
                                                                                                                                                                                                                                                                                                                                          • Broader market environment
                                                                                                                                                                                                                                                                                                                                            • Key points
                                                                                                                                                                                                                                                                                                                                              • Implications for beauty retailers
                                                                                                                                                                                                                                                                                                                                                • Competitive context
                                                                                                                                                                                                                                                                                                                                                  • Key points
                                                                                                                                                                                                                                                                                                                                                    • Personal care spending returns to growth in 2010
                                                                                                                                                                                                                                                                                                                                                        • Figure 76: UK: Consumer spending on selected categories, 2005-10
                                                                                                                                                                                                                                                                                                                                                      • Spending breakdown
                                                                                                                                                                                                                                                                                                                                                        • Figure 77: UK: Consumer spending on personal care, by major category, 2009
                                                                                                                                                                                                                                                                                                                                                      • A volatile picture for beauty inflation
                                                                                                                                                                                                                                                                                                                                                          • Figure 78: UK: Consumer prices inflation for selected categories, Jan 2009-Nov 2010
                                                                                                                                                                                                                                                                                                                                                        • Strengths and weaknesses in the market
                                                                                                                                                                                                                                                                                                                                                          • Strengths
                                                                                                                                                                                                                                                                                                                                                            • Weaknesses
                                                                                                                                                                                                                                                                                                                                                              • Who’s innovating
                                                                                                                                                                                                                                                                                                                                                                • Online innovation
                                                                                                                                                                                                                                                                                                                                                                  • Popping up in the UK
                                                                                                                                                                                                                                                                                                                                                                    • Sampling
                                                                                                                                                                                                                                                                                                                                                                      • In-store technology
                                                                                                                                                                                                                                                                                                                                                                        • Beauty on a budget
                                                                                                                                                                                                                                                                                                                                                                          • In-store spas
                                                                                                                                                                                                                                                                                                                                                                            • Experiences
                                                                                                                                                                                                                                                                                                                                                                              • Sector size and market forecast
                                                                                                                                                                                                                                                                                                                                                                                • Key points
                                                                                                                                                                                                                                                                                                                                                                                  • Economic and consumer outlook
                                                                                                                                                                                                                                                                                                                                                                                    • Beauty retailers’ prospects
                                                                                                                                                                                                                                                                                                                                                                                      • Market size forecasts
                                                                                                                                                                                                                                                                                                                                                                                          • Figure 79: Personal care spending forecast confidence range, 2005-2015
                                                                                                                                                                                                                                                                                                                                                                                          • Figure 80: Personal care* market value forecast, best and worst case data, 2005-15
                                                                                                                                                                                                                                                                                                                                                                                        • Sector sales
                                                                                                                                                                                                                                                                                                                                                                                          • Figure 81: UK: Estimated total health and beauty retailers’ sales, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                        • Cosmetics/toiletries specialists lose share
                                                                                                                                                                                                                                                                                                                                                                                          • Figure 82: UK: Beauty specialists* and Boots** as a % of the personal care market, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                        • Outlet and enterprise data
                                                                                                                                                                                                                                                                                                                                                                                          • Enterprises
                                                                                                                                                                                                                                                                                                                                                                                            • Figure 83: UK: Health and beauty retailers, number of enterprises, by sub-sector, 2004-08
                                                                                                                                                                                                                                                                                                                                                                                          • Outlets
                                                                                                                                                                                                                                                                                                                                                                                            • Figure 84: UK: Retail outlets by sector, 2004-08
                                                                                                                                                                                                                                                                                                                                                                                          • Channels of distribution
                                                                                                                                                                                                                                                                                                                                                                                            • Key points
                                                                                                                                                                                                                                                                                                                                                                                              • Boots gained most ground in 2009
                                                                                                                                                                                                                                                                                                                                                                                                • Figure 85: UK beauty and toiletries market, channels of distribution, 2009
                                                                                                                                                                                                                                                                                                                                                                                              • Grocery retailers
                                                                                                                                                                                                                                                                                                                                                                                                • Health and beauty specialists
                                                                                                                                                                                                                                                                                                                                                                                                  • Boots
                                                                                                                                                                                                                                                                                                                                                                                                    • Department stores and other mixed goods retailers
                                                                                                                                                                                                                                                                                                                                                                                                      • Non-store – a mixed picture
                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 86: UK: Beauty market, leading direct sellers, 2010
                                                                                                                                                                                                                                                                                                                                                                                                      • Online channel grows rapidly driven by the multi-channel players
                                                                                                                                                                                                                                                                                                                                                                                                        • But the pureplay segment is particularly innovative
                                                                                                                                                                                                                                                                                                                                                                                                          • Retail competitor analysis
                                                                                                                                                                                                                                                                                                                                                                                                            • Key points
                                                                                                                                                                                                                                                                                                                                                                                                              • Technical note
                                                                                                                                                                                                                                                                                                                                                                                                                • Leading specialists
                                                                                                                                                                                                                                                                                                                                                                                                                  • The market leaders shine
                                                                                                                                                                                                                                                                                                                                                                                                                    • The Body Shop fails to impress
                                                                                                                                                                                                                                                                                                                                                                                                                      • Mixed performances from smaller players
                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 87: UK: Leading beauty specialists, 2009/10
                                                                                                                                                                                                                                                                                                                                                                                                                      • Market shares
                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 88: UK: Leading specialists’ market shares, 2009
                                                                                                                                                                                                                                                                                                                                                                                                                      • Retail advertising and promotion
                                                                                                                                                                                                                                                                                                                                                                                                                        • Key points
                                                                                                                                                                                                                                                                                                                                                                                                                          • Beauty advertising expenditure declines
                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 89: Leading retailers’ advertising spending, cosmetics and toiletries, 2006-09
                                                                                                                                                                                                                                                                                                                                                                                                                            • Spending relative to turnover
                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 90: Selected retailers’ advertising spending, as % of sales, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                              • Spending by media
                                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 91: Leading beauty retailers’ spending on toiletries and cosmetics advertising, by media, 2009
                                                                                                                                                                                                                                                                                                                                                                                                                                • Advertising content
                                                                                                                                                                                                                                                                                                                                                                                                                                  • The consumer – where they buy beauty products
                                                                                                                                                                                                                                                                                                                                                                                                                                    • Key points
                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 92: Where they bought beauty products in the last 12 months, November 2010
                                                                                                                                                                                                                                                                                                                                                                                                                                      • Changing allegiance
                                                                                                                                                                                                                                                                                                                                                                                                                                        • A higher proportion of Tesco shoppers buy into beauty
                                                                                                                                                                                                                                                                                                                                                                                                                                          • Superdrug gains customers and market share
                                                                                                                                                                                                                                                                                                                                                                                                                                            • Boots still comfortably leading the pack
                                                                                                                                                                                                                                                                                                                                                                                                                                              • Internet making inroads
                                                                                                                                                                                                                                                                                                                                                                                                                                                • Department stores lose some ground
                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 93: Where they bought beauty products in the last 12 months, November 2009 and 2010
                                                                                                                                                                                                                                                                                                                                                                                                                                                • Retailer market positioning
                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 94: UK: Market positioning of leading retailers/channels, November 2010
                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Repertoire – Boots customer loyalty strengthens further
                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 95: Beauty cosmetics, skincare products or fragrances/aftershaves bought from, by repertoire of beauty cosmetics, skincare products or fragrances/aftershaves bought from, November 2010
                                                                                                                                                                                                                                                                                                                                                                                                                                                    • The consumer – how they shop for beauty products
                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Key points
                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Shopping habits 2010
                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 96: The way they shop for beauty products, November 2010
                                                                                                                                                                                                                                                                                                                                                                                                                                                          • 2010 compared to 2009
                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 97: The way they shop for beauty products, November 2009 and 2010
                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Patterns of behaviour by age and affluence
                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 98: How they shop for beauty, by age and affluence, November 2010
                                                                                                                                                                                                                                                                                                                                                                                                                                                              • The consumer – attitudes to beauty shopping
                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Key points
                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 99: Attitudes to beauty shopping, November 2010
                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • The gender divide
                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 100: Attitudes to beauty shopping, November 2010
                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Target groups
                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 101: Beauty target groups, November 2010
                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 102: Attitudes towards beauty purchasing, by target groups, November 2010
                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Group 1: The Price Aware (22%)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Who are The Price Aware?
                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Group 2: The Quality Led (19%)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Who are The Quality Led?
                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Group 3: The Enthusiasts (11%)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Who are The Enthusiasts?
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Group 4: The Indifferent (48%)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Who are The Indifferent?
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Where people shop by typology
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 103: Where they bought beauty products, by consumer target group, November 2010
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Appendix – The Consumer – Where They Buy Beauty Products
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 104: Most popular where they bought beauty products in last 12 months, by demographics, November 2010
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 105: Next most popular where they bought beauty products in last 12 months, by demographics, November 2010
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 106: Other where they bought beauty products in last 12 months, by demographics, November 2010
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 107: Least popular where they bought beauty products in last 12 months, by demographics, November 2010
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 108: Repertoire of where they bought beauty products in last 12 months, by demographics, November 2010
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Appendix – The consumer – how they shop for beauty products
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 109: Most popular how they shop for beauty, by demographics, November 2010
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 110: Next most popular how they shop for beauty, by demographics, November 2010
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Appendix – The consumer – attitudes to beauty shopping
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 111: Most popular attitudes towards beauty purchasing, by demographics, November 2010
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 112: Next most popular attitudes towards beauty purchasing, by demographics, November 2010
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 113: Other attitudes towards beauty purchasing, by demographics, November 2010
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 114: Target groups, by demographics, November 2010
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • A.S. Watson (Europe)

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 115: A.S. Watson (Europe): Sales as share of European health and beauty specialists’ sales, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Strategic evaluation
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 116: Rossmann: Outlets per million population, 2009
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Group
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Recent history
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 117: A.S.Watson: European health and beauty chains, 2009
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Financial performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 118: A.S. Watson: Estimate European sales and store numbers, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 119: Rossmann Eastern Europe (joint venture): Estimated total European sales and store numbers, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Store portfolio
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 120: A.S.Watson Europe: Estimated store numbers, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • UK operations
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 121: A.S. Watson UK: Sales as share of UK health and beauty specialists’ sales, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Financial performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Superdrug back on the road to profit
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Can Savers beat the competition?
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • The Perfume Shop continues its strong performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 122: AS Watson UK: Financial performance, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Store portfolio
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 123: AS Watson UK: Outlet data, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Superdrug focusing on beauty
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Savers’ wider offer
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • The Perfume Shop’s successful niche
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Advertising
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Continental Europe operations
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Benelux
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Financial performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 124: A.S..Watson Benelux: Estimated sales contribution by fascia, 2009
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Store portfolio
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 125: A.S.Watson: Benelux: Health and beauty store numbers, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • E-commerce
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Marionnaud
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 126: A.S.Watson: Estimated Marionnaud sales as share of health & beauty specialists’ sales in Europe, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Financial performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 127: A.S. Watson: Marionnaud: Estimated sales, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Store portfolio
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 128: A.S. Watson: Marionnaud outlets (estimated), 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 129: A.S. Watson: Marionnaud’s store portfolio by country (estimated), 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Retail offer
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Eastern Europe
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Rossman joint venture
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Baltic operations
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Other Eastern operations
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 130: A.S. Watson: Eastern European operations, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Boots UK

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 131: Boots UK: Sales as share of health and beauty retailers’ sales, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Strategic evaluation
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Group strategy
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Beauty plays second fiddle
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Extending the own brand reach
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Customer loyalty a key battleground
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Forming strategic partnerships
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Convincing market leader
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Recent history
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Financial performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Group context
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • UK health and beauty division
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 132: Alliance Boots UK Health and Beauty Division: Financial performance, 2006-10
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • First half 2010/11
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Store portfolio
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 133: Alliance Boots UK Health and Beauty Division: Outlet data, 2006-10
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • e-commerce
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • dm-drogerie markt

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 134: dm-drogerie-markt: Share of all European health and beauty retailers’ sales, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 135: dm-drogerie markt: Share of German health and beauty and german beauty specialists’ sales, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Strategic evaluation
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Recent history
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Financial performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 136: dm-drogerie markt: Sales performance, 2005/06-2009/10
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Store portfolio
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 137: dm-drogerie markt: Outlet data, 2006-10
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • International stores
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 138: dm-drogerie markt: International outlet numbers, 2006-10
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • e-commerce
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Douglas

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 139: Douglas perfumery (Germany): Share of German health and beauty specialists’/beauty specialists’ sales, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 140: Douglas perfumery division: Share of European health and beauty specialists’ sales, 2005-10
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Strategic evaluation
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • A first mover
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • A fast mover
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Flexible retail mix
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Recent history
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Financial performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 141: Douglas Holding: Group financial performance, 2005/06 -2009/10
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 142: Douglas Perfumeries: Group financial performance, 2005-10
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 143: Douglas Perfumeries: Sales contribution of German/International stores, 2005-10
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 144: Douglas Perfumeries: Sales growth rates in selected countries, 2008/09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Store portfolio
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 145: Douglas Perfumeries: German/International store portfolio, 2005-10
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 146: Douglas Perfumeries: Stores per million capita in selected countries, 2009
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 147: Douglas Perfumeries: Outlet data, 2005-2010
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 148: Douglas perfumeries: Average sales per outlet by country (and date of entry into market), 2009
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • E-commerce and home shopping
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Lush

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 149: Lush Retail Ltd: Sales as share of UK health and beauty retailers’ sales, 2005-2008
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Strategic evaluation
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Struggling, but growing
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • The cost of a clear conscience
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Spreading the risk
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Recent history
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Financial performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 150: Lush Retail Ltd: Financial performance, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Store portfolio
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 151: Lush Retail Ltd: Outlet data, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • e-commerce
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Müller

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 152: Müller: Estimated sales as share of health & beauty retailers’ sales in Europe, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 153: Müller: Estimated sales as share of health & beauty and beauty retailers’ sales in Germany, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Strategic evaluation
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Recent history
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Financial performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 154: Müller: Estimated group sales performance, 2005/06-2009/10
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Store portfolio
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 155: Müller: Estimated outlet data, 2006-10
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 156: Müller: Product areas, 2010
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 157: Müller: Major beauty own brand lines, 2010
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • e-commerce and home shopping
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Nocibé

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 158: Nocibé: Sales as share of health and beauty and beauty specialists’ sales in France, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Strategic evaluation
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Recent history
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Financial performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 159: Nocibé: Group financial performance, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Store portfolio
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 160: Nocibé: Outlet data, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • e-commerce and home shopping and marketing
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Rossmann

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 161: Rossmann: Sales as share of health and beauty specialists’ sales in Europe, 2005-09 (%)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 162: Rossmann: Sales as share of health and beauty specialists’ and beauty specialists’ sales in Germany, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Strategic evaluation
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Recent history
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Financial performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 163: Rossmann: Group financial performance, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Store portfolio
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 164: Rossmann: Outlet data, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • e-commerce and home shopping
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Schlecker (incl Ihr Platz)

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 165: Schlecker: Share of European health and beauty specialists’ sales, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 166: Schlecker: Estimated share of German health and beauty and of German beauty retailers’ sales, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Strategic evaluation
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Ihr Platz offers an opportunity
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Recent history
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Financial data
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 167: Schlecker: Estimated sales performance, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Store portfolio
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 168: Schlecker: Estimated outlet data, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Ihr Platz
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • e-commerce and home shopping
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Sephora

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 169: Sephora: Estimated sales as share of European health and beauty retailers’ sales, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Strategic evaluation
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Recent history
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Financial performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 170: Sephora: Financial performance, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Store portfolio
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 171: Sephora: Estimated outlet data, 2004-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Space NK

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 172: Space NK Ltd: Sales as share of health and beauty retailers’ sales, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Strategic evaluation
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Recent history
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Financial performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 173: Space NK: Group financial performance, 2006-10
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Store portfolio
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 174: Space NK: Outlet data, 2006-10
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • E-commerce
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • The Body Shop

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 175: The Body Shop UK & Republic of Ireland: Estimated sales as share of UK health and beauty retailers’ sales, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Strategic evaluation
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Recent history
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Financial performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 176: The Body Shop (UK & RoI): Group financial performance, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Store portfolio
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 177: The Body Shop UK: Outlet data, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Market positioning
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • E-commerce and home shopping
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Yves Rocher Group

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 178: Groupe Yves Rocher: Estimated sales as share of health & beauty specialists’ sales in Europe, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Strategic evaluation
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Recent history
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 179: Groupe Yves Rocher brands, 2010
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Financial performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 180: Groupe Yves Rocher: Group sales performance, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Store portfolio
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 181: Groupe Yves Rocher: Estimated European outlet data, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 182: Groupe Yves Rocher: Yves Rocher brand: Estimated outlet numbers, 2005, 2006 and 2009
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • e-commerce and home shopping
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Appendix – Broader Market Environment

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Population
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 183: Europe Top 6: Population breakdown, by age group, 2005
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 184: Europe Top 6: Population breakdown, by age group, 2010
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 185: Europe Top 6: Population breakdown, by age group, 2015
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 186: Europe Top 6: Population breakdown, by age group, 2020
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • GDP
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 187: Europe Top 6: GDP (in current prices) 2000-Q3 2010
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 188: Europe top 6: GDP growth rates (in constant prices), 2000-Q3 2010
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Consumer spending
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 189: Europe top 6: Consumer spending (in current prices) 2001-Q3 2010
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 190: Europe Top 6: Consumer spending growth rates (in constant prices) 2001-Q3 2010
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Consumer prices
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 191: Europe Top 6: Consumer prices, 2001-Oct 2010
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Unemployment
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 192: Europe Top 6: Average rate of unemployment, 2001-Q3 2010
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Interest rates
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 193: UK and Eurozone: Interest rates, 2004-Q3 2010
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Consumer confidence
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 194: Europe top 5: Consumer confidence, March 2009-November 2010

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Companies Covered

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Alliance Boots UK Retail
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Avon Cosmetics Ltd
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • The Body Shop - Retail Sales

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Beauty Retailing - Europe - January 2011

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                £1,285.00 (Excl.Tax)