THIS WEEK: Lancaster axes link with Boots

Lancaster, the personal health and beauty company, has launched a major overhaul of its business and is pulling its loss-making cosmetics brands out of all Boots stores in a bid to move up-market.

Lancaster, the personal health and beauty company, has launched a major

overhaul of its business and is pulling its loss-making cosmetics brands

out of all Boots stores in a bid to move up-market.



The German-owned company wants to reposition its Lancaster cosmetics

brand as an exclusive department store treatment brand - found in stores

such as Harvey Nichols and House of Fraser.



It will slim down from being sold in 200 stores in 1994 to 60 by the end

of this year. It is currently in about 150 stores and the reduction will

mean the loss of about 65 sales consultants jobs.



It has promoted marketing director David Daniels to commercial director,

but sales director Gary Snook has lost his job as a result of the

changes.



The restructure focuses on the cosmetics business which has been losing

money since its UK launch six years ago.



‘We had to invest to get the brand going but it’s clear that we can’t

carry on sustaining a heavy loss when the group is profit-driven and

really trying to grow,’ said Daniels.



Daniels is confident that repositioning Lancaster will make it stronger

in preparation for two fragrance launches next year, and a complete

relaunch of its established suncare brand.



Men’s fragrances such as Davidoff Cool Water and Joop! Homme have

traditionally been Lancaster’s strengths but it is now looking to build

up its women’s fragrance division.



Cool Water Women and All About Eve will be launched in the UK in April

and September respectively, with a combined spend of over pounds 1m.



It is dropping eight brands including Davidoff Classic and several sub-

brands of Joop!



Daniels said Lancaster is aiming for 30% growth next year which will

bring it back to a break-even position.