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Changes afoot and Cape Town are widely served by retail, there South Africa prestige retail at a glance are numerous other areas that are still untapped. Edgars “When you come out of those regions and N° of stores: 186 into the smaller towns, you still have a consumer Edgars, owned by Edcon, is the leading department-store chain in South Africa. Together with who is very much fashion conscious,” says sister perfumery chain Red Square, it accounts for roughly 50% of the prestige market, say Iman Cosmetics general manager and senior industry sources. The retailer is currently repositioning itself, revamping stores, overhauling its vice president of brand development Desiree beauty strategy and diversifying its brand portfolio. Edcon acquired the rights to distribute the Reid. “The offer that you put there may not be Inglot Cosmetics brand in September 2013, a deal which includes standalone stores. as large as the ones that you put in a bigger city, but there are still pockets with quite nice Red Square regional pharmacies, for example, that are N° of stores: 41 looking to bring in brands that really meet the Red Square, launched in 1996, is Edcon’s perfumery operation. Its 39 stores, averaging 150m 2 needs of their customers.” (1,614.6ft ) each, offer prestige and masstige brands, as well as services. Like Edgars, the 2 Beauty standalone stores have come relatively operation is reviewing its strategy. Its e-commerce site, which delivers nationwide, launched in late to South Africa despite the market being 2013 and continues to add new brands to its offer—Sisley launches on it later this year. The site mall-based, but they are beginning to make offers a key selling advantage to brands looking to get greater geographic coverage of the country. headway. MAC has three standalones, while Truworths “ Department-store operator Truworths operates the Truworths Elements store-in-store concept, N° of stores offering cosmetics: 66 launched in 1999, in 66 of its main South African stores, offering premium and niche brands. When you go into the smaller towns, you still have a Foschini consumer who is very fashion N° of stores: around 240 conscious. The offer you put While Foschini has wide geographic coverage of the market and stocks prestige brands like Dior, Lancôme, Clinique and Elizabeth Arden, most of its business comes from masstige brands, say there may not be as large as industry sources. Owner The Foschini Group reported 8.9% in cosmetics revenue growth for the the ones you put in a bigger year ending March 31, 2014 (+4.9% on a same-store basis). Foschini has also been expanding to city, but there are still pockets international markets; it plans to double its presence in countries like Nigeria in the next fve years. with quite nice regional Woolworths pharmacies that are looking to N° of stores: around 200 bring in brands that meet the Woolworths began selling beauty in 2006 and caters to the the South African market’s upper end. It initially saw success in converting its shoppers, notably from the food segment, to beauty, say needs of their customers industry sources. Nevertheless, a change in strategy has meant the segment has been neglected in senior vice president of brand development ” Stuttafords recent years, making it less attractive to brands. The retailer has a strong private-label beauty offer. Iman Cosmetics general manager and Until recently, South Africa’s oldest department-store operator was also its most important for Desiree Reid N° of stores: 10 high-end brands, but industry sources say that it is suffering from a perception that its concept is old-fashioned. Stuttafords stocks a wide range of prestige brands, and its Sandton store remains Jo Malone opened at the V&A Waterfront mall one of the country’s strongest for certain beauty brands. Recent brand introductions include in 2011; L’Occitane has around 10 stores and Hermès, Juice Beauty and Kardashian Beauty. Inglot Cosmetics, now distributed by Edcon, has six. Dermalogica opened at V&A Waterfront Metropolitain Cosmetics in Cape Town earlier this year, and launched a N° of stores: 4 store in Johannesburg in July. Niche-brand specialist Metropolitain Cosmetics plans to open two stores in coming months, in The emergence of these stores, combined Cape Town and Pretoria, expanding its reach outside Johannesburg for the frst time. The retailer with new retail strategies at the majors, will saw its sales grow 18% last year, mainly due to price increases related to the weak rand, says co- likely see more shifts in the distribution scene in founder Wilfrid Moulin. Skincare represents 65% of the its sales; its top selling brand is Dr Sebagh. the near future. n September-October 2014 - N°19 - BW Confidential 61