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Study Shows British Top EU in Beauty Spending
Posted: August 22, 2008
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Though its stores are typically small compared to those of other major retailers, this massive network gives it the largest amount of floorspace by a significant margin. However, it also has the least productive space due to its value positioning and the cannibalization of sales due to an overintensive store network in its core domestic market of Germany where, according to the retailer, customers can find a Schlecker outlet every three kilometres.
The 12 new members of the European Union are attracting major investment from the likes of Douglas and dm-drogerie markt because of their high growth rates and future growth potential. With stiff competition in the mature EU markets and weak consumer confidence likely to limit spending growth in the short term, there is much to be gained from geographical diversification into these smaller markets.
Verdict Research examined retail sales of health and beauty products across the 27 countries of the European Union for its latest report, and found that Romania, Estonia and Latvia have seen the fastest growth, albeit from small bases.
Spain has been the fastest growing of the major EU markets of Germany, the United Kingdom, France, Italy, Spain and the Netherlands. Spanish category expenditure increased by almost a third between 2002 and 2007—more than twice the rate of any other major market. This has been driven by strong economic growth, with Spanish GDP rising 44.0% during the period.