Sephora targets shopping centres

Sephora Marinopoulos, the Greek cosmetics company that holds and operates the multibrand cosmetics store chain Sephora in Romania, will open at least seven units this year, in the cities that it is yet to tap into, with the investment in one such store amounting to 45,000 euros on average.
Currently, the Greek hold 10 Sephora stores in Bucharest, Constanta, Cluj and Iasi. The company estimates that the over 36% annual growth rate will be preserved this year as well, with Sephora's main growth drivers being the company's development projects.
"The 2007 turnover saw a 36% increase on 2006, mainly due to the rebranding process of the former Beauty Shops in the Sephora stores. For this year, we forecast almost the same growth, by 38%, but in this case, the growth would have to do with expansion plans," Cristina Marin, brand manager of Sephora, told ZF.
According to data supplied by the Finance Ministry, Sephora Marinopoulos closed 2006 with turnover worth 11.9 million euros, which puts last year's revenues at 16.1 million euros. As for this year, the Greek have budgeted a 22.2 million-euro turnover.
Last year, the company completed its rebranding process, which meant giving up the Beauty Shop brand and replacing it with Sephora.
"In 2007, all four stores known under the Beauty Shop name underwent a transformation, and, in parallel, another three Sephora stores were opened in Romania. This change entailed a 1.8 million-euro investment in the stores," explained Marin.
For Sephora Marinopoulos, as for most companies seeking to expand their brands, shopping centres were the most attractive targets, especially due to difficulties experienced in finding an appropriate location for an independent store.
"When we decide to open a Sephora store, all manner of parameters are considered: city, political context, consumer behaviour and purchasing power of a city's inhabitants. It is very true that, since there are no pedestrian areas where people can shop in Romania, and in Bucharest, in particular, like in other countries, we preferred shopping centres," explained Marin.