Italian pharmacies prove their worth in recession

Pharmacies are the key outlets for the sale of cosmetics in Italy, according to a study for the sector association Unipro by Nielsen. Sales in Italy via pharmacies increased by 3.8% in 2008 to €1.3bn. The trend was modified slightly in the first half of 2009 as the value of the market overall declined by 1.9% but ex-pharmacy sales of cosmetics rose by 3% against a picture of declining sales through hairdressing and beauty salons, down by 7.1% and 4% respectively. Gian Andrea Postano, for Unipro, said that at a time of economic crisis which was also affecting cosmetics, the pharmacies were proving to be a significant and important channel for sales.

Meanwhile, Fabio Franchina, president of Unipro, said the industrial picture was not homogeneous because of the differing performance of the various distribution channels. Overall first half sales fell by 2.5% to around €8.1bn, affected by a 1.9% downturn in the Italian market and a 4.5% drop on the export market. Purchasers of cosmetics on the domestic market were being more cautious in their spending but were not giving up the use of hygiene and personal care products altogether.

The bulk distribution sector saw a fall of around 3% in demand in the perfumery outlets with a dip of 2% forecast for second half 2009.

Forecasts for the second half of this year are marked by economic uncertainty coupled with the expectation of reduced dynamism in the retail sector.