JANUARY 2017

Beauty Trends Report BEAUTY | TRENDS From brows to lashes and lips, color cosmetic sales are trending up

From the hot color segments to new prod- marketing at Kiss Products. According to Eye cosmetic sales* and share uct launches, here is what you need to IRI, Kiss’s eyelash adhesives and artificial know about the beauty business in 2017. eyelashes both churned out sales increas- es exceeding 50% for the most recently Mass market color sales con- tracked 52-week period. tinue to climb, driven primarily by adven- turous millennials. “We have our ear to the ground for beau- ty trends,” DeVita-Goldstein explained, For the sixth continuous time period, adding the company noticed celebrities the most explosive expansion is coming and beauty icons were wearing mink from eyebrow makeup. For the 52-week artificial lashes to achieve a fluffy and Total sales: period ended Oct. 30 across multi-out- luxurious look. lets, as measured by IRI, the sec- $2,114.3 tor’s dollar volume soared more than 34%.

To that end, chains are rushing to add more brow entries while n Mascara: $934.9/44.2% n Eyebrow: $226.4/10.7% building out brow departments. ’s Eyestudio Brow n : $601.1/28.4% n Eye combo: $42.7/2.0% makeup showed sales gains of n : $310.4/14.7 more than 142%, while its Eye- Studio Brow Drama contributed * In millions Source: IRI for the 52 weeks ended Oct. 30, Total U.S. Multi-Outlet another almost 40% increase. Mi- (supermarkets, drug stores, mass market retailers, military commissaries lani burst into the category with its and select club and dollar retail chains) Stay Put Eyebrow Makeup, which is up more than 250%. Top 10 eyebrow makeup products

CVS is the exclusive mass mer- % SALES UNIT chant source for Wunderbrow BRAND SALES* CHG SALES* brow gel, a one-step solution al- Salon Pefect Perfectly Glamorous false eyelashes, available exclusively at Walmart, Maybelline EyeStudio Brow Drama $30.8 39.3% 3.6 lowing women to easily fill, define and can now be tried on — virtually — with the Maybelline EyeStudio Brow** 17.2 142.1 2.4 shape their eyebrows with natural-look- Perfect365 app. Maybelline Eyestudio Brow Precise 15.7 27.4 2.2 ing color in under two minutes. Wun- CoverGirl Brow and Eye Makers 12.7 2.2 3.2 derbrow achieved fame on the Internet, Brow Fantasy 11.1 -4.2 1.5 and is hitting CVS stores in five shades, priced at $22. With a goal of making non-fur options L’Oréal Brow Stylist Definer 10.1 NA 1.2 that would be lighter and more afford- Maybelline Define-A-Brow 10.1 -8.4 1.5 The focus on eyes is helping women able, the Kiss team created Lash Cou- Maybelline Expert Wear 8.4 -8.0 2.3 discover the beauty of artificial lashes. ture, Faux Mink Collection. New tech- NYX 7.9 13.9 1.3 Kiss Products unveiled new product nology with a knotless lash band was L’Oréal Brow Stylist Designer 6.8 -10.5 0.9 innovations for 2017 designed to keep implemented to create a natural, lay- TOTAL $226.4 34.1% 40.1 the momentum. ered look. The lashes, which mimic the

look of mink without using real fur, are * In millions ** Maybelline EyeStudio Brow Define + Fill “We want to be category drivers,” said sold in six lash styles retailing for $5.99. Source: IRI for the 52 weeks ended Oct. 30, Total U.S. Multi-Outlet (super- markets, drug stores, mass market retailers, military commissaries and se- Annette DeVita-Goldstein, SVP of global CONTINUED ON PAGE 4 lect club and dollar retail chains)

2 / January 2017 DRUGSTORENEWS.COM Untitled-33 1 12/9/16 4:04 PM BEAUTY | TRENDS

CONTINUED FROM PAGE 2 ments are a $1 billion-plus category that Lip cosmetic sales* and share The lashes are reusable up to 10 times. will benefit from the further education provided by digital solutions. “Lashes are instantly transformational,” said DeVita-Goldstein, who believes the Perfect365 app users can experiment advantages of the faux mink will attract with five one-tap lash looks and view vid- more users to the false eyelash category. eos on how to apply lashes in real life. To complement the new lashes, Kiss also Perfect365 is a free makeup app with rolled out a new strip lash adhesive that is more than 80 million users. It uses face- strong but gentle, thanks to the infusion of detection technology for accurate virtual biotin and blueberry extract. makeup placement on photos and live Total sales: videos. Perfect365 app users will be $902.6 A new lash app is expected to help wom- teased about the lash addition. en virtually “see” lashes before apply- ing. Salon Perfect, which is exclusive at From lids to lips — women also want to Walmart, now can be tried on an app from make a bold statement with their lip shades. Perfect365. Ardell lashes will be added to the app in the next month. The lip category is still shining for mass n Lip stick: $660.3/73.2% n Lip treatment: $9.5/1.0% merchants with sales of lip combos up : $163.5/18.1% Lip combo: $4.3/0.5% “Easy application is absolutely one of 140%, gloss up 4%, rising 4.5% n n the biggest obstacles concerning false and lip treatment soaring 100%. Among n Lip liner: $65.1/7.2% lashes today, and has been for decades. the standout products in the sector are Many women buy the lashes, but either LA Colors Lip Combo, Maybelline Baby * In millions Source: IRI for the 52 weeks ended Oct. 30, Total U.S. Multi-Outlet end up having a professional apply them Lips lip gloss and NYX lip liner. (supermarkets, drug stores, mass market retailers, military commissaries or they don’t use them at all,” explained and select club and dollar retail chains) Vickie Wei, director of marketing for Per- The final category with the most- posi fect365. “The nature of eyelashes and tive results is . Dollar sales of Top 10 lip combo products how they are sold makes it almost impos- concealers are up almost 11%, propelled sible to try them on before purchasing by a trio of Maybelline items — Instant % SALES UNIT them. Most users purchase a number of Age Rewind, Fit Me and Superstay Better BRAND SALES* CHG SALES* ‘wrong’ lashes before finding their perfect Skin. Also, NYX Wonderstick powered a NYX $1,701.3 NA 144.8 pair.” Wei said eyelash-related enhance- 163% growth spurt. L.A. Colors 1,082.9 382.9 244.8 Private label 513.9 171.2 51.7 E.l.f. 494.2 NA 68.8 A Kiss of Care and Color 235.9 -32.7 59.1 Black Radiance Perfect Tone 95.6 -34.8 28.7 ColorMates 62.1 -42.3 57.7 Cherry Chree 56.0 NA 23.2 Black Radiance Perfect Tone Lip** 55.0 -44.1 17.1 Wet N Wild Perfect Pair 4.5 -97.0 1.4 TOTAL $4,307.4 141.3% 699.0

* In thousands ** Black Radiance Perfect Tone Lip Definer Source: IRI for the 52 weeks ended Oct. 30, Total U.S. Multi-Outlet (super- markets, drug stores, mass market retailers, military commissaries and se- lect club and dollar retail chains)

lip combo 140% sales saw impressive triple-digit growth sales were up 8.8% compared with last year, according to IRI data for the 52 weeks ended Oct. 30. at mass merchant retailers.

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Since 1912, folks have called our hand-harvested SheaMoisture Hair continued to grow the category up 33% YTD October. Shea Butter the ultimate natural wonder. With 21 different hair collections, SheaMoisture addresses diverse need states, is Number 14 in Hair Care* and the fastest growing Organic, natural, and ethically-sourced, it’s just one of Brand in the Top 20 (Latest 12 Weeks, Ending Oct. 30th, 2016). the good-for-you ingredients in our quest to make the SheaMoisture is the Number 1 Natural Brand in Body Care* best personal care products in the world. in major retailers: 17 diverse collections for face and body and a full line of women's shave products. Grow with us! In Men's Hair and , SheaMoisture for Men demonstrates For more detail, contact Senior VP of Sales, consistent growth - building the two core collections. Rich Gallucci at 646-734-3067. Source: IRI October 30, 2016 *Hair Care: , Conditioner and Stylers *Body Care: Body Wash, Bar Soaps and Hand & Body

Untitled-7 1 12/20/16 2:21 PM BEAUTY | TRENDS Beauty app-splosion Brands, stores bustle to offer beauty apps to encourage engagement and experimentation, decrease product returns

Beauty brands are rushing to add apps as a ploy to allow shoppers to experiment with beau- ty more often, while also eliminating the need for consumers to return products because of disappointment in shades. If a brand doesn’t have an app now, it probably will this year.

L’Oréal kicked off the trend two years ago with Makeup Genius, but many others have been quick on its heels.

The latest is e.l.f. in conjunction with YouCam. E.l.f. Cosmetics is the first mass market brand to launch on YouCam, a beauty app offering virtual makeup application with more than 300 million downloads.

YouCam features about 50 e.l.f. SKUs on its platform, highlighted by three e.l.f.-curated holiday looks, the brainchild of e.l.f.’s makeup As one of the first beauty brands to launch an app, L’Oréal’s Makeup Genius offers realtime makeovers artist Achelle, which will be extended quarterly. using one-of-a-kind technology that recognizes characteristics to ensure a seamless virtual makeup application experience. The debut also represents the first time You- Cam is offering “shoppable” looks. “You can buy as you are trying on, [which has been avail- able], but for the first time you can shop the en- tire look and purchase right from there,” said Mara McCune, VP of marketing for e.l.f.

“We believe our consumer is increasingly con- nected. She gets her information and is influ- enced by bloggers and what she sees online. We see virtual beauty as a way to influence her shopping decision and a natural extension of our mission of making luxurious beauty acces- sible,” McCune said.

Also new in the app store is Clairol’s MyShade, an app that not only allows women to see how a shade will look, but also offers consultation to personalize the choice. “We hope to turn the [hair More interactive beauty apps, which allow the experimentation many millennial shoppers crave, are color] category around by putting expert advice in expected to roll out this year. CONTINUED ON PAGE 8

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CONTINUED FROM PAGE 6 the palm of women’s hands,” said Heather Car- ruthers, VP of Clairol Global and U.S. marketing. “What we’ve done is take the daunting task of choosing hair color and make it simple. MyShade is designed to bring the expertise of our color ex- perts to the customer in a few simple steps.”

Carruthers said women tend to spend as much as 10 minutes in hair color aisles, twice the time they devote to other hair care products, but only 50% of those women actually make a purchase. “We are trying to get more women to color their hair by removing the biggest fears — getting it wrong or ruining their natural color. It’s empowering.”

MyShade has a broad menu of options, includ- ing the choice to click and see a new trend, such as the merger of Red and Bronze for a col- or called Ronze. Users can share their images of the fresh hair hues on social media channels.

“The Clairol app offers the ability to virtually try- on a hair color, which is of extreme importance to consumers, since hair coloration is usually a big commitment,” said Parham Aarabi, CEO Apps give consumers the option to try before they buy, nixing the hassle and time committment of of ModiFace, the company behind many of the having to apply a product and then wash it off, or of having to purchase the product first. new apps. “The MyShade app brings two in- teresting features to the market, including an [artificial intelligence]-based hair adviser that a personalized solution. The app features Mod- guides a user as to what shade is best for them, iFace’s patented hair coloration and shade- and a universal shade-scanning technology matching technology to accurately depict hair built into the adviser that helps them try on any color. It starts from the hair color in the photo for permanent home hair color,” Aarabi said. a realistic result. There’s also the opportunity to call or e-mail an expert from MyShade. The scanner works with any hair color box, even from competitors, and suggests a shade Retailers said they expect to see more apps roll from the Clairol range. out this year, especially since millennials like to experiment. Apps allow that without actual ap- Carruthers said the app reduces the risk of plications and washing off the looks each time. getting it wrong through a series of questions, The apps also offer the capability to take selfies such as, “what is your gray level?” to prescribe to share with friends for feedback.

We hope to turn the [hair color] category around by putting expert advise in the palms of women’s hands. E.l.f. Cosmetics recently joined the You- What we’ve done is take the daunting task of choosing Cam app. The app, which currently has more than 300 million downloads, hosts hair color and make it simple. 50 e.l.f. SKUs and a range of curated, “shoppable” looks, enabling users to try Heather Carruthers, VP of Clairol Global and U.S. marketing — and share — before they buy. “8 / January 2017 “ DRUGSTORENEWS.COM 24 SHADES LIMITED TIME COLLABORATION AVAILABLE JAN- APRIL 2017 Kandee is wearing shades: Pin Up Pink, Strawberry Milk and Pink Velvet

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Untitled-1 1 12/20/16 10:01 AM BEAUTY | TRENDS Taking a hint from Canadian drug stores High-end brands, exemplary service among keys to success

Consumer Suzanne Lee grew up in upstate New York, but moved to Ontario many years ago. Re- cently, upon visiting her hometown, she stopped at a local drug store for her favorite skin care prod- uct. She was surprised to find it wasn’t sold there.

“Funny, I never noticed until now how much bet- ter our drug stores are in Canada for beauty,” Lee acknowledged. “I was told my brand was a department store line in the United States.”

Her observations are spot-on. The United States and Canada may share borders, but the two countries have few similarities when it comes to cosmetics and fragrances.

Mass market cosmetics retailers have long envied the access Canadian retailers have to beauty brands that won’t distribute to Ameri- can counterparts. Shoppers Drug Mart’s BeautyBOUTIQUE, which launched in 2003, utilizes a store-within-a-store approach to separate its high-end beauty offerings from its mass beauty brands, offering lines that, in More European-inspired than American- the United States, are usually limited to department stores. influenced, Canada’s leading drug stores sell such brands as , , , and Lancôme — names U.S. merchants only dream of stocking. In Canada, there is an associate who Service is superb — more than self- greets you immediately. You will never selection. And the stores pump out the sales and profits to boot. Estimates are that Canadian find a consultant cleaning shelves. beauty departments produce sometimes twice There is a difference in the approach the sales per sq. ft. of American mass beauty doors. Average beauty departments in U.S. of the cosmetics service in stores. stores typically generate less than 6% of total store sales, where Canadian units can hit al- Loic Steinbach, VP of Vitry USA most 10% of overall cash register rings. “ There are myriad reasons why Canadian stores pers were — often in drug stores. One Shop- for the lines that often require hands-on service to get what U.S. stores can’t. Dating back 30 pers Drug Mart beauty advisor explained it this demonstrate the value of spending more. years, Canadian shoppers didn’t have as much way: “The high-end lines are a huge success access to department stores that were privy to here because they reach all corners of the pop- Over the years, other premium options have flour- premium brands. Often the population was so ulation — not just cities.” ished in Canada, most notably Sephora, which“ spread out it was prohibitive to pop into a de- has more than 30 units spread through eight partment store to restock the makeup bag. But the attractiveness stemmed from more than provinces. hasn’t crossed the bor- just getting to customers, but also from the fact that der yet, but could challenge the Canadian mass Consequently, those lines went where shop- the environment in drug stores was better suited CONTINUED ON PAGE 12

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CONTINUED FROM PAGE 10 beauty universe if it did since the company also fuses mass and class. For now, consumers ap- pear quite happy to shop at their local drug store.

The discount format hasn’t flourished as fast in Canada. In fact, Target retrenched when it found challenges getting enough foot traffic to support its stores.

Keeping Canada’s pharmacies abreast of trends thanks to constant visits from beauty companies is a major boost to the stores. Rep- resentatives from various lines make the rounds to stores. “They help train, offer demonstrations and help with displays,” said the Shoppers Drug Mart beauty expert. In the United States, buyers Jean Coutu, which operates more than 415 stores in three provinces, offers such beauty brands confirmed visits to stores are limited if at all. as Caudalie, Biotherm and Jouviance. The chain’s in-store beauty services include skin analysis, makeup touch-ups and a makeup trial program. Loic Steinbach, VP of Vitry USA, said Canadian retailers benefit from the high levels of service. “In Canada, there is an associate who greets you immediately. You will never find a consultant cleaning shelves. There is a difference in the ap- proach of the cosmetics service in the stores.” During busy hours, many retailers even staff the beauty area with several consultants, he said.

Other business-building tools employed in Canada include financial incentives for beauty advisors, as well as plentiful demonstrations. Steinbach also said Canadian merchants turn their valuable front- and center-of-store real es- tate over to beauty. When it is located at the door, rather than on another floor or off to the side, customers must pass through beauty to get to the pharmacy counter — a good ploy since beauty often is an impulse purchase.

One obstacle in the United States to getting the Uniprix, which operates 380 stores in three store formats, prides itself on its beauty expertise, offering not best beauty staff is the lack of commissions with just products but also a trend watch and skin care tips on its website. mass merchants lacking the funds to attract top- level people. However, as witnessed by the num- bers, finding money in the budget could pay off. on-one with customers. Its consultants also will United States will continue to attract new brands be equipped with such tools as iPads. while enticing shoppers who have migrated to To be sure, such U.S. drug chains as Walgreens such specialty stores as Sephora back to chains. and CVS are working feverishly to burnish ser- Walgreens also is adding a new level of super- vice in America. CVS is removing housekeep- trained consultants to further enrich its customer Rite Aid and Target, as well, have upped the ing duties so beauty consultants can work one- interaction levels. The hope is that, over time, the ante in service within beauty.

Still, U.S. retailers often head north for ideas and For an in-depth look at some Canadian chains, as well as more on beauty trends, concepts to import into their departments. “There visit: DrugStoreNews.com/digitaleditions. are a lot of things happening in Canada that could be done in the United States,” Steinbach said.

12 / January 2017 DRUGSTORENEWS.COM Untitled-2 1 4/7/2016 9:49:45 AM BEAUTY | TRENDS Northern Exposure DSN examines how top Canadian retailers do beauty

1. Shopper Drug Mart: North York, Ontario Shoppers Drug Mart, which operates more than 1,200 Shoppers Drug Mart and Pharmaprix stores, has a multi-prong attack on the beauty business. Its traditional stores have ample beauty assortments merging both class and mass. That’s important to company president Mike Motz, who has said his customers cross- shop, buying an item or two from the upscale area and others from traditional mass market lines. The exposure to premium also helps trade shoppers up. It doesn’t hurt to have beauty be the first area shoppers see, he added, because women are the primary customers. The com- pany has a burgeoning loyalty program called Optimum, which it mines for beauty data and personalized interaction with shoppers.

Just recently, Shoppers Drug Mart overhauled its L’Oréal Active Cosmetics department with a fresh approach to the derm skin care lines, which include Vichy and LaRoche-Posay. The derm concept used at Shoppers Drug Mart has been emulated in the states at CVS and Wal- greens. U.S. beauty executives have reported checking the new department out for inspiration. Shoppers Drug Mart, which operates more than 1,200 SDM and Pharmaprix stores, offers both “class and mass” products, capitalizing on consumers who cross-shop from the moment they step into stores Shoppers Drug Mart also offers the Joe Fresh and find themselves in the middle of the chain’s beautyBOUTIQUE. Beauty line consisting of more than 150 new cosmetics products, all under $18. Another proprietary line is Quo, which launched in 1999. partment stores in America, such as Clinique, tinations called Murale. The stores sell some of Quo offers everything from color cosmetics for Estee Lauder, Benefit and . There the most coveted brands, such as , the face, lips and eyes to a line of implements now are 384 stores with BeautyBOUTIQUES. Foreo and Chanel No 5. Murale is known not and professional application tools. It, too, in- only for its extensive brands, but also its state- spired American merchants to try their hand at Three years ago, Shoppers Drug Mart raised of-the-art derm skin care center, private rooms proprietary beauty over the past 15 years. the bar in beauty with its Enhanced beautyBOU- for services, a brow bar and teeth whitening. TIQUE concept created to help the chain keep In 2003, Shoppers Drug Mart introduced the up with budding competition from Saks, Nord- As part of its omnichannel approach, Shoppers first beautyBOUTIQUE, a store-within-a-store strom and the growth of Sephora. The amped Drug Mart launched an e-commerce website approach to elevate the beauty presence. That up beautyBOUTIQUE features such cosmetic under the beautyBOUTIQUE nameplate. The concept helped Duane Reade introduce Look brands as Chanel and Yves Saint Laurent, digitization version of its prestige-focused in- Boutique under the direction of Joe Magnacca, as well as upgraded fixtures, digital signage, store beautyBOUTIQUES, carries more than 100 who had served as EVP at Shoppers Drug Mart. more testing areas and a fragrance sampling brands, including YSL, , Benefit, Estée station. Footage devoted to beauty more than Lauder and Lancôme. Its broad category offer- BeautyBOUTIQUE features a separate high-end doubled since the original boutique. ings include makeup, skin care, fragrance, nails, area from mass, stocked with lines limited to de- There also are several luxury freestanding des- hair, bath and body, men’s grooming and gift sets.

14 / January 2017 DRUGSTORENEWS.COM BEAUTY | TRENDS

2. Jean Coutu: Varennes, Quebec When it comes to Quebec, Jean Coutu domi- nates with more than 50% of the pharmacy business. The stores are sparkling and accen- tuate such beauty brands as Caudalie, Bio- therm and Jouviance. In-store beauty services include skin analysis, makeup touch-ups and a makeup trial program.

Jean Coutu operates more than 415 stores in three provinces, which pump out average sales 4 per store of almost $12 million in Canadian dol- lars in about 8,500 sq. ft. Beauty is the first de- partment a customer sees, and the company makes ample use of floor space to present seasonal specials. Its website features beauty tips from influencer Marie-Christine Proulx. The company has beefed up its private labels to dif- ferentiate it from competitors.

3. Rexall: Mississauga, Ontario 6 2 Rexall has a huge opportunity to strengthen its beauty business, especially under the new ownership of McKesson. Steps have been tak- en in the past year to add a new beauty decor package to the 475-plus chain, with the ad- dition of new and emerging brands under an umbrella name of Inspired Beauty. Some of the lines stocked include Marcelle, Kit, Annabelle and Be Better. Elevated beauty could help raise the average store sales of about $5.4 million in Canadian dollars, especially since the large 12,000–sq.-ft. units have space to expand.

4. London Drug: Richmond, British Columbia London Drug is known for its vast 30,000-sq.-ft. 5 stores, which sell everything from electronics to 6. Uniprix: St. Leonard, Quebec eyeliner. London offers a beauty blog, and its The 380-store Uniprix chain op- own YouTube tutorials often hosted by its own erates three different types of beauty consultants. While London’s mix often is stores — the full-size Uniprix compared with U.S. stores, the chain has lines with a large beauty area called not offered in U.S. mass units on a wide distri- Beaute plus dermo-cosmetics bution, including Cargo and Bliss. centers; the Uniprix Sante, which are medium-sized stores with 5. Brunet: Montreal, Quebec smaller beauty footprints; and Brunet stores are franchised pharmacies oper- Unprix Clinique, which are small ated by Metro, a grocery company. Over the clinical-style stores with mostly years, the company has introduced larger for- pharmaceuticals. The company mats, clearing the way for more beauty in Bru- prides itself on its expertise in net Plus formats. Natural products star in Bru- beauty, and its website is full of net’s mix. Brunet leverages the link between information, such as the lipstick beauty and health, and heavily promotes its trends for 2017 and skin care tips dermo cosmetics in stores and online. for the perfect shave. 3 15 / January 2017 DRUGSTORENEWS.COM BEAUTY | NAIL CARE Up and coming Beauty formats — new and old — to continue expansion in 2017

Rather than watch the nail category continue to evaporate, retailers and brands are bonding together with innovative Essie gel launches and impactful in-store presentations. couture collection

For the 52-week period ended Oct. 30, nail color sales were This collection gives the look of gel down 11.4% across multi-outlets, according to IRI. That’s nails without needing lamps or cur- prompting action. ing. Offers a choice of 42 colors and a proprietary top coat. Suggested CVS, for example, has a traffic-stopping new nail bar department retail price: $11.50 per bottle. in many of its stores, highlighted with Essie’s Gel Couture gel nail system and nail care tools. “It is an in-store destination with all the tools and trends for an at-home nail care experience,” said Alex Perez-Tenessa, VP beauty and personal care for CVS. Sally Hansen Several chains report strong movement out of the gates Color Therapy with Sally Hansen’s new Color Therapy, a collection created to offer on-trend colors and nail care benefits at the same The first U.S. that time. One of the “hero” ingredients is argan oil, which has blends saturated color and argan become sought after by consumers in many products across oil in 38 new shades is intended categories. “Sally Hansen has long stood for both color and to condition weak, dry nails. Sug- care, and the Color Therapy line represents both of these,” gested retail price of $8.99. said Shannon Curtin, SVP North America for Coty’s consumer beauty division.

Some chains are looking for more salon-style treatment options, SinfulColors such as the HealthyWiser Nail Care Tool Kit, which offers all the products needed to achieve a professional mani or pedi at home Core Collection — safely. The product includes an electronic nail-filing device to SinfulColors kicked off the new avoid bruising from the usual filing. year by adding to its Core Collection with 10 new shades, Rite Aid, Walmart and Walgreens are among the chains pushing including The Full Monte, Bitten more deeply into nail care. Vitry is bringing high-quality repair and Bluz Cruz, each carrying a products to drug stores with its Nail Care Repair, which one $1.99 suggested retail price. buyer said is gaining traction as people seek to strengthen nails after using gels.

Buyers also hope innovation in will continue to build Vitry Nail that business. According to IRI, artificial nails sales soared 10% in the 52-week period ended Oct. 30. That was one of only two Repair Care positive growth segments within nail; the other was implements. Developed to cure damaged, cracked or brittle nails, it is “Women are more open-minded and looking for something already the company’s best- better than traditional nail polish and gels,” said Annette DeVita- selling product. Also introduced Goldstein, SVP of global marketing at Kiss. Kiss is using more was Nail Repair Sensitive, its first in-store education and consumer demonstrations to help women organic product. feel at ease with applications.

16 / January 2017 DRUGSTORENEWS.COM More eye-opening than your A.M. morning latte.

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DSN eye-opening ad 2016.indd 1 12/21/16 2:23 PM BEAUTY | TRENDS The big brands get bigger Experts expect acquisition push to continue in 2017

Eye-opening acquisitions got executives buzzing in 2016. While many were in the pres- tige sector, such as L’Oréal’s $1.2 billion buy of IT Cosmetics and Estee Lauder’s $1.4 bil- lion purchase of Too Faced, the mass sector saw its healthy share of deals, too. Consider Unilever’s $1 billion buy of Dollar Shave Club, Johnson & Johnson’s purchase of OGX or Al- liance Consumer Growth investment in Paci- fica. And of course, the mammoth finalization of Coty’s assumption of 41 brands from Proct- er & Gamble, as well as Revlon’s purchase of .

Experts expect more of the same in 2017. With consumers pressing retailers for the new and latest, buyers are adding niche brands. One chain source said almost all of his growth last year was from new brands. That’s putting es- tablished brands in a vice. Should they inno- vate or just buy niche brands? In many cases, the decision is to buy the edgy brands and then In its ads, Dollar Shave Club — which Unilever bought for $1 billion in 2016 — derides the industry’s pump more money into them to build them. reliance on new and outrageous tech at the consumer’s expense. DSC offers consumers a one-month trial of any razor for $1, including a reusable handle and full cassette of razor cartridges. After the trial In stores, this move is reflected by edits to month, consumers continue to receive cartridges for as little as $3 per month. To watch the ad, visit many iconic brands in favor of more space for YouTube.com/watch?v=ZUG9qYTJMsI. such up-and-comers as e.l.f. and Milani.

Kérastase revolutionizes hair care with new smart brush Kérastase in partnership with Withings announced the Kérastase Hair Coach Powered by With- ings — the world’s first-ever smart hairbrush. Developed in collaboration with L’Oréal’s- Re search and Innovation Technology Incubator, the brush features Withings’ advanced sensors and seamless product design along with L’Oréal’s patent-pending signal analysis algorithms to score the quality of hair and monitor the effects of different hair care routines.

An accompanying app provides insights and customized product recommendations to help people Kerastase Hair Coach better care for their hair. The brush, which debuted in January at CES 2017 and earned the Interna- tional CES Innovation Award, is expected to reach retail in mid-2017, at a retail price of about $200.

18 / Month 2017 DRUGSTORENEWS.COM BEAUTY | TRENDS Mass looks to Korean-inspired skin care products to wake up category

Mass merchants are about to wake up the Jenner pick and a private label mask to help sleepy skin care category. They are unleash- CVS get in on the mask craze, according to Alex ing a slew of Korean-inspired options to keep Perez-Tenessa, VP of merchandising in beauty up with specialty stores, upping their game in and personal care at CVS. Under its own Beauty acne and touting those ingredients getting a 360 logo, CVS now has sheet and cream masks. big buzz on social media. “Product innovation is coming faster to the mass market now,” Perez-Tenessa said. After years of radiant growth, the skin care busi- ness needs the boost. According to IRI, sales for Walgreens also is on top of the mask move- the 52-week period ended Oct. 30, across multi- ment with a 3-ft. display of exclusive masks outlets experienced an almost 1% gain. Moistur- retailing for $9.99 under the Spa@Home by izers and were the only two catego- Masque Bar. ries showing growth. Declines in such profitable sectors as acne, facial care and body anti-aging L’Oréal also filled white space in the mass stung retailers who had come to count on these market for masks with its Pure Clay Mask Col- categories for big dollars over the years. lection. This entry helped offset declines in the anti-aging portion where L’Oréal has been a sales are buoyant, buyers said, be- huge producer. cause women are buying more cosmetics. With the move to artificial lashes, bold lips, contour- Yes To has been singled out as helping mass ing and dramatic eyebrows, women need better merchants get their fair share of masks. Mask removal systems. That’s ignited sales of such sales globally, according to Euromonitor, have products as Bior�é��,�� �Cetafiletafi l and �S������������imple cleans-� exploded from sales of $3.5 billion in 2010 to According to buyers, facial cleanser sales ers. Bior�é������������������������������������������������������������������������ showed a 50% increase in sales vol- $5 billion last year. They are up 28% in the U.S. are buoyed by the uptick in cosmetic sales. ume for the 52-week period ended Oct. 30. mass market with limited launches to date, suggesting there is much more opportunity. Hand in hand with more cleansing comes the actress Olivia Holt was key in demonstrating it need to moisturize. Years in the making, Neu- Drug stores also are fighting the competition on social media. trogena’s Hydro Boost hit the market at just the with speeding entries to market with the ingre- right time. According to one discount source, dients consumers hear about through social The $39.99 mask gives mass marketers a foot- the launch helped knock off media, including argan oil, caffeine, charcoal hold in the light therapy category, which before Olay as the best-selling facial care brand. IRI and hyaluronic acid. had been cost-prohibitive. The mask has posi- showed Hyro Boost sales soared 75% for the tive results in trials. period ended Oct. 30. Perhaps the category with the most potential, however, is acne. For the past few years, there While retailers hope for skin care to return to ro- Emboldened with the growth of products in- have been few innovations in treatment of acne. bust growth, they noted a positive trend in bath, spired by specialty trends, drug chains vowed That’s changing in the next few months with the where dollars through cash registers are up al- to get more aggressive in skin care by reacting debut of Galderma’s Differin Gel, with the first most 10%. What’s fueling that is an emphasis on faster to what’s on the shelves at Sephora or new active ingredient to treat acne without a the synergy between health-and-wellness and online at K-beauty sites. prescription approved by the FDA in the past beauty. The briskest-growing brands include 30 years, and Neutrogena’s Light Therapy Dr. Teals and Village Naturals. And coming CVS is a perfect case in point. In the past few Acne Mask. If ever there was a product made on strong thanks to new distribution, up more months, the chain has added many skin care in- for the Instagram generation, it is the Light than 600%, is Me! Bath. This line features bath novations including Skin Fix, a growing natural Therapy Mask. Users can’t help but share their bombs inspired by ice cream —- proving there’s and clinically tested brand, Ahava mud masks photos as they don the mask, which is held on still room for fun in the bath. Target, Walgreens from the Minerals, Nip+Fab, a Kylie with glass-style frames. It didn’t hurt that singer/ and CVS are among the chains offering Me!

19 / January 2017 DRUGSTORENEWS.COM