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Table

SUNTAN LOTION & OIL

DOLLAR SALES

Total *
$XXX.X mil.
(+XX.X%)

Drug stores
$XXX.X mil.
(+XX.X%)

Leading brands                  Dollar sales      %        Market
in drug stones                     (XXX)       change      share

Neutrogena Ultra Sheer            $XX,XXX      +XX.X%       X.X%
Coppertone Sport                   XX,XXX      +XX.X%       X.X%
Hawaiian Tropic                    XX,XXX      +XX.X%       X.X%
Coppertone                         XX,XXX       -X.X%       X.X%
Banana Boat Sport Performance      XX,XXX      +XX.X%       X.X%
Australian Gold                     X,XXX      +XX.X        X.X%
Banana Boat                         X,XXX       +X.X%       X.X%
L'Oreal Sublime Bronze              X,XXX      +XX.X%       X.X%
Coppertone Ultraguard               X,XXX      +XX.X%       X.X%
Neutrogena Micro Mist               X,XXX      +XX.X%       X.X%

UNIT SALES

Total *
XX.X mil.
(+XX.X%)

Drug stores
XX.X mil.
(+XX.X%)

Leading brands                   Unit sales       %      Avg. price
in drug stores                     (XXX)       change     per unit

Neutrogena Ultra Sheer             X,XXX        +XX.X%     $XX.XX
Coppertone Sport                   X,XXX        +XX.X%       X.XX
Australian Gold                    X,XXX        +XX.X%       X.XX
Hawaiian Tropic                    X,XXX         +X.X%       X.XX
Banana Boat                        X,XXX         +X.X%       X.XX
Banana Boat Sport Performance      X,XXX        +XX.X%       X.XX
Coppertone                         X,XXX         -X.X%       X.XX
L'Oreal Sublime Bronze               XXX        +XX.X%       X.XX
Coppertone Ultraguard                XXX        +XX.X%       X.XX
Hawaiian Tropic Sheer Touch          XXX       +XXX.X%       X.XX

For the XX weeks ended March XX, 2011. In drugstores, private label
products account for a XX.X% dollar share and a XX.X% unit share.

* Total of drugstores, supermarkets and discount stores excluding
Walmart.

Full article

NEW YORK -- Beauty sales in drug stores are growing modestly despite a decline in SKU count, according to category experts.

"Retailers have propped up sales with better velocity and pricing," says Kurt Jetta, president of market research firm TABS Group Inc.

Color cosmetics have surged, with Maybelline and Neutrogena the big winners, according to Jetta. Face care, though, is slipping badly.

"This category used to be a reliable innovator that posted reliable growth," Jetta explains. "The innovation seems to have dried up, however.

"There's a big opportunity for a brand with something new and meaningful to jump in and pick up a nice sales gain."

Skin care products for the body and the nail care segment have been fiat, but they are poised for growth, Jetta says. The two categories were hit disproportionately hard by SKU rationalization, and the remaining items have been performing much better.

Reinforcing consumers' pursuit of beauty products with health care attributes has been a banner year for sun care products. Consumers, apparently, will keep paying more for products with higher SPFs, Jetta says.

The outlook for the beauty category in drug stores over the next XX months is to continue in the X % growth range if pricing is static, but a shift to premium pricing could make that a X% gain.

"Hair care, facial skin care and hair color really need to step up in order to reinvigorate this sector," Jetta points out. "All three of those categories are fiat or declining."

One way to shift to premium pricing is to carry more premium products, and CVS/pharmacy and the Duane Reade stores of Walgreen Co. have done just that. Duane Reade and CVS have broken down the barrier between mass beauty and the prestige market with their respective rollouts of the Look Boutique and Beauty XXX formats.

The consensus is that Look Boutique elevates the level of beauty merchandising at a drug store to that at a department store, bringing a European approach to American chain drug retailing.

"The Look Boutiques are gorgeous," says Shannon Petree, Walgreens' divisional vice president and general merchandise manager for beauty and personal care. "They are definitely beautiful in every sense of the word. They have done a tremendous job."

CVS Caremark Corp. launched the high-end Beauty XXX concept "because we believe there will be a place for it in the beauty care marketplace going forward," comments Mike Bloom, interim co-leader of CVS/pharmacy. "We're looking ahead--to the impact we hope to see in the marketplace that will exist five years from now."

BEAUTY CARE SALES IN DRUG STORES BY CATEGORY

                                                        % CHANGE
CATEGORY                              $ SALES *       VS. YEAR AGO

SECTION

Skin Care                          $X,XXX,XXX,XXX         -X.XX
  Facial antiaging                    XXX,XXX,XXX         +X.XX
  Facial cleansers                    XXX,XXX,XXX         +X.XX
  Acne treatments                     XXX,XXX,XXX         +X.XX
Eye cosmetics                         XXX,XXX,XXX         +X.XX
  Mascara                             XXX,XXX,XXX         +X.XX
  Eyeliner                            XXX,XXX,XXX         +X.XX
Facial cosmetics                      XXX,XXX,XXX         +X.XX
  Foundation                          XXX,XXX,XXX         +X.XX
Hair coloring                         XXX,XXX,XXX         +X.XX
...