Cosmetic “daughter” of “Magnet” surpassed revenue “Rive Gauche”

The store network “Magnit Kosmetik” in Moscow

Not only cosmetics

As estimated by the consulting company INFOLine-Analitika, at the end of 2015 in the segment of “Cosmetics and drogerie” chain store “Magnet Cosmetics” for the first time took second place, ahead of “Rive Gauche”: the annual sales of the “daughter” of “Magnet” was 40.1 billion rubles to 38 billion rubles from a competitor.

Remains the leader of the network “L’etoile”, the proceeds of which amounted to about 70 billion rubles, and on the fourth place “Ile de Beaute” from 24.5 billion rubles. the Top 5 was closed by another representative of the drogerie format Petersburg network “Smile of the rainbow”, whose sales INFOLine estimated at 14.9 billion rubles in addition to Magnit Kosmetik”, none of the networks does not publish the figures.

Drogerie is also called the “Apothecary shops”: as a rule, they have a small premises in residential areas, they sell non-food consumer goods, including cosmetics, household, dishes, clothing, etc Magnit Kosmetik”, according to the financial Director of “Magnet” Khachatur Pombukhchan, 5 thousand items in stock for cosmetics and perfumes accounted for 40%. “The magnet of Kosmetik” and Krasnodar “Sangi Style” the largest number of stores among drogerie retailers in Russia, according to INFOLine.

The largest Russian retailer Magnit has launched a network “the Magnet of Kosmetik” in 2009. The number of the shops network “Magnit Kosmetik” has become a leader in its segment in 2014: then she turned out to be 1080 pixels compared to 880 stores “L’etoile”. May 2016 “Magnit Kosmetik” there were already 2,5 thousand stores.

“Magnet”

On may 31, 2016 total number of stores of the retailer reached nearly 12.8 thousand, including about 9.9 thousand convenience stores “at home”, 227 hypermarkets, 167 stores “Magnit Family”. For the first five months of 2016 the turnover of the company amounted to 430,3 billion rubles or 14.7% more than in the same period a year earlier.

The main shareholder of the company with a share of 35.1% its founder Sergei Galitsky. It occupies 17-e a place in rating of the richest Russians, according to Forbes, his fortune is estimated at $5.7 billion.

“In recent years “Magnet” built to its user friendly concept of a network has created the correct layout and established effective working with suppliers,” explains the success of General Director of “INFOLine-Analytics” Mikhail Burmistrov.

According to a member of the Board Russian perfumery-cosmetic Association Anna Dycheva-Smirnova, “Magnit Cosmetics” won by a large representation of shops and a wide selection. “The cosmetic market, especially regional, is far from saturated and, despite the crisis, the cosmetics is not a luxury, people bathe, use deodorant and skin care,” she says.

In the early autumn of 2014 we opened the first re-branded “Magnet Cosmetics”: changed design (new logo with a heart pattern is not similar to the brand “big” Magnet”), and range. “80% of the audience “Magnit Kosmetik” women who come to the store also for emotions, not just for a new lipstick,” explained previously, RBC Director of drogerie format in “the Magnet” Sergey Goncharov. All new stores were opened already in the new format and the old, according to Goncharov, it was planned to Rabindranath approximately 200 per year. By the end of 2015 in the new format worked half points in the network.

Today “Magnit Kosmetik” is for “Magnet” in the most dynamic format to increase space and revenue. Revenue “Magnet Cosmetics” in five months of 2016 has almost doubled to 22.9 billion rubles In the same period, the revenue of main division stores “at home” increased 13.9% to 318,6 billion RUB, the company Informed the representative of “Magnit” announced its plans to open in 2016 additional 1.2 thousand points of Magnit Kosmetik”.

Purchasing power

According to INFOLine, the rate of growth of Magnit Kosmetik” showed one of the best results among networks of all sizes. Grow faster only network alkomarketov “Bristol” Igor Kesaeva (revenue growth of 109%) and the Krasnoyarsk food discounters “Traffic light” (105,9%).

The growth of specialized networks is slowed down (see infographic). So, in 2014, “L’etoile” increased its trading volume of 19.9% and in 2015 only 12.9%. “Rive Gauche” two years ago, increased annual revenue by 15%, and in the past year only 10%.

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The press-service networking, “L’etoile” and “Rive Gauche” to a request to RBC did not answer.

Pombuhchan notes that in the development of drogerie “Magnet” is almost never focuses on the specialized perfumery-cosmetic retail. “Of course, we are competing for the purse of consumers the budget people have one, but mostly we are watching the development of competitors from a segment of drogerie”, he added. Burmistrov agree that network drogerie compete with a specialized cosmetic retail, not directly, but in the conditions of decrease in consumer ability of Russians in the format “eats away” part of the traffic of all the competitors.

Thus the drogerie interested in increase in your share range of cosmetics. “We strive to make products beauty categories held in our stores at least 20%, says the owner of “Sangi Style”, Dmitry Shcherbakov. As our consultants are the highest paid employees, we want their time to be converted into sales more difficult and marginal product”.

In the segment of inexpensive brands of cosmetics and perfumes, none of the specialized networks does not have the purchasing power, which has a “Magnet,” explained Burmistrov. Forfrequent beauty stores “Magnet” opened “the door to the door with his food stores, but they do not interfere”, said earlier the basic owner “the Magnet” Sergey Galitsky.