Industry Analysis & Industry Trends
The Cosmetics and Toiletries Retailers industry has effectively recouped the ground lost after the economic downturn over the past five years, as revenue has grown and profit margins have risen. Industry revenue surpassed the pre-recessionary peak during the middle of the past five-year period. However, the extent of the industry's recovery has been limited by strong competition from supermarkets, chemists, department stores, discount retailers, e-tailers and other competitors. Industry firms currently serve only an estimated 40% of the retail cosmetics market. Although revenue has growth in each year of the period, a faltering economic recovery has meant that consumer preferences for budget, own-label and mass-market products have persisted... purchase to read more
Industry Report - Industry Investment Chapter
The industry has a moderate level of capital intensity. Employees need a significant amount of product knowledge to address queries from customers. For this reason, industry wages are slightly higher than the retail trade sector average. Retailers such as the Body Shop and Space NK, for example, invest more heavily in staff training because they believe skilled workforce improves their results. Consumers increasingly demand products tailored to their skin type, ethical standpoint or other requirements, meaning more experienced employees are needed. Wages are estimated to account for 14.6% of revenue in 2016-17.
Depreciation costs account for an estimated 2.8% of revenue. A number of participants have remodelled their stores in an attempt to attract new customers. Thi.. purchase to read more