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Drugstore Operator dm Revamps its Assortment

German drugstore operator dm is revamping its assortment in Austria, adding 1,900 products, mostly in the cosmetics and organic food categories. The new assortment will be rolled out to all stores in the country by mid-June 2017.

In detail, around 1,000 SKUs will be added to the cosmetics and facial care category. New brands will be added, such as L.O.V. and Revlon, alongside dm’s new private label line Trend It Up, which was only available online in Austria so far.

Opinion

The Battle Goes On

It comes with no surprise to us that dm revamps its assortment, given that the drugstore retailer is doing so every three to four years. But what is interesting is the timing as its main competitor Bipa — which belongs to German Rewe Group — announced a complete overhaul of its range just recently. This translates in the refurbishment of 30 of its 612 Austrian drugstores each week. This drastic move comes after declining sales and the loss of the Austrian drugstore market leadership in 2015, to no other than dm. 

There is no doubt that Bipa will benefit from its current overhaul. That said, we see no evidence at the moment that Rewe Group's drugstore chain will ever regain its number one position. Very much like in Germany, dm indeed shows an impressive performance in Austria: According to LZ Retailytics data, dm’s sales density (excluding hair and beauty salons) is a third higher than Bipa’s, and the gap is widening. This means that even with a larger store network, Bipa will be unlikely to catch up with dm any time soon.

Despite its leadership secured, dm shouldn’t rest on its current success, expanding and adapting its assortment in a bid to remain ahead of competition. After Bipa announced to add healthy food as well as to move away from perfumery, we are sure dm will find new categories to excel in.


Topics: dm Rewe Group