In a press conference discussing the fiscal year ending September 2009 and future strategy of the company held earlier this week, Douglas Holdings stated that future investment would focus on the perfumeries.
Approximately 40 new stores are planned across Europe with a particular focus placed on Poland and Italy.
In addition, the company said it will be looking to increase the number of private label offerings and brands exclusive to Douglas particularly in the fragrance sector in an attempt to differentiate itself from competition on the market.
It also plans to increase entry level body care products in an attempt to attract new consumer groups, as well as extending own and exclusive brands in the care and decorative cosmetic segments.
Spain and Portugal sales down
The last fiscal year was a mixed bag for the perfumery division, with sales up overall but largely due to new store openings and investment in Croatian perfumery company iRis.
Although the domestic market recorded sales growth of 1.2 per cent to €920m, certain markets brought in disappointing results including Spain, Portugal, the Baltic States and Hungary.
On the back of some of these results, Douglas decided to close a number of the more struggling stores.
CEO Dr Henning Kreke described the year’s results as more modest than most.
“However, we still feel a sense of pride that we have managed to achieve our goals despite the unfavourable economic climate and defend our position against so many competitors,” he said.
Preliminary results from the first quarter of the new financial year were discussed and show a slight sales drop of 0.8 per cent at Douglas Perfumeries; mainly due to a significant drop in sales in the international markets, according to the company.
“Although the impact of economic crises is still palpable, we produced a respectable start into the new fiscal year and are not dissatisfied with the performance of the first quarter and the holiday season sales as a whole,” said Kreke.