Bath & Body Works - Competitors

Bath & Body Works Competition

Now Viewing Bath & Body Works's competition in: Cosmetics, Beauty Supply, and Perfume Stores (primary)

Recent Developments

Personal Care Product Sales Slow - Sales of beauty products were disappointing in first quarter 2008. L'Oreal had organic growth of 5.1 percent, its worst quarterly revenue growth in three years. Procter & Gamble's beauty segment grew just 3 percent, while Unilever's personal care segment grew 5.8 percent. Competing in the beauty and personal care business is getting difficult as more companies enter the retail segment and fight for market share, which then forces price reductions and leads to corresponding declining margins.

Beauty School Offers Dollar Haircuts - A beauty school in St Petersburg, Florida is helping consumers fight slumping economic times, while ensuring that its students have real customers, by offering dollar haircuts. The promotion is a win-win, as hair stylist students must have hundreds of hours experience to graduate. Live customers, rather than mannequins, give them that experience while offering consumers a price break.

Anti-Aging Products Thrive - As the skin care market grows in the US, the anti-aging sector is thriving. Anti-aging product sales are forecast to grow 50 percent from 2006 to 2011, according to Information Resources; growth in 2007 was 7.6 percent over 2006. Information Resources' data indicates that the US skin care products industry totals about $2 billion, with $606 million from anti-aging products.

Competitive Landscape

Demographics, consumer spending, and fashion trends drive demand. The profitability of individual stores depends on the ability to generate store traffic and effective merchandising. Large companies can offer a wide selection of products, and have advantages in purchasing, distribution, and marketing. Small companies can compete effectively by selling specialty products, providing superior customer service, or serving a local market. The industry is labor-intensive: average annual revenue per worker is about $85,000.

Full Industry Overview For Cosmetics, Beauty Supply, and Perfume Stores

Cosmetics, Beauty Supply, and Perfume Stores Industry Forecast

from Hoover's/D&B subsidiary First Research

US personal consumption expenditures on barbershops, beauty, and health clubs, which are indicators for cosmetics, beauty, and perfume stores, are forecast to grow at an annual compounded rate of 3.8 percent between 2007 and 2012.

Consumer Spending Growth on Beauty and Health Slows

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.