Overall in 2012, the Germany beauty retailers market continued to be rather fragmented in terms of the competitive environment and companies' shares of overall sales. The largest players in Germany in 2012 were DM-Drogerie Markt and Rossmann, with 8% and 7% retail value shares respectively. Both companies are present in parapharmacies/drugstores with many outlets all across Germany, and enjoy a comparatively good reputation amongst German consumers. Both companies saw very strong performances in 2012, because of the insolvency of Schlecker, as many former customers now go to DM-Drogerie Markt or Rossmann.
Schlecker, one of the leading chains in parapharmacies/drugstores, filed for bankruptcy in January 2012. The strategy of the company, which was to have a very high number of small outlets, which had worked well in the 1980s and 1990s, turned into a disaster, because the bigger outlets of Drogerie Markt and Rossmann at highly frequented locations attracted more customers due to the larger product offer and more modern store designs. The launch of 350 larger Schlecker XL outlets came too late to save the company. All Schlecker outlets were closed by August 2012, because no new investor was found. Of Schlecker's subsidiary Ihr Platz, 104 outlets are being taken over by Rossmann, but the other 600 outlets were also closed.
Health and beauty specialist retailers is expected to increase by a negligible CAGR in constant value terms to 2017. There is no sign that the health and wellness trend will subside over the next five years, nor are there expected to be significant changes in demographic developments in Germany during the same period. However, the number of outlets and sales area are expected to see slight growth, due to the bankruptcy of Schlecker in early 2012, which has left some towns without any parapharmacy/drugstore. These gaps are likely to be filled by the remaining three chains Dm, Rossmann and Müller.
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