When Prestige and Mass Market Meet

Shoppers Drug Mart Corporation in Canada offers mass-market products while differentiating prestige products through its in-store boutiques. At the same time, the company is seeing an increasing number of prestige companies such as Smashbox, Shiseido and Clarins that want to increase consumer access rather than limiting themselves to its upscale boutiques.

“I think we’re feeling good about the prospect of adding more brands to the beauty boutique, but also taking some traditional brands from the beauty boutique and putting them in the open-sell environment,” said Glenn Murphy, CEO. The company also expanded its selling space, up 10.3% to 8.2 million square feet. With a thirdquarter profi t increase of 15.1%, this drugstore/boutique format may be a glimpse of the future.