Shoppers Drug Mart said Thursday that it has a new beauty concept — and a new divisional president.

This story first appeared in the March 28, 2008 issue of WWD. Subscribe Today.

The Canadian retailer has tapped Shelley Rozenwald, formerly senior vice president of cosmetics, skin care, fragrance and beauty services for upscale retailer Holt Renfrew, as president of its yet-to-be-named new concept store.

The upscale format will feature a wide range of prestige cosmetics, fragrances, skin care items and dermatological lines, in addition to a full-service pharmacy, said Rozenwald, who begins her new job April 7.

This new concept is an extension of Shoppers Drug Mart’s Beauty Boutique format, first introduced in 2003 to increase the company’s share in the prestige beauty market. Beauty Boutiques, adjacent to Shoppers Drug Mart stores, are staffed by sales associates trained in all of the brands. The boutiques are now in more than 140 Shoppers Drug Mart and Pharmaprix (as the chain is known in Québec) locations across Canada. In total, the chain operates about 1,080 locations in Canada.

While both the Beauty Boutique stores and the new concept stores carry cosmetics, fragrances and skin care items, the difference in the two store formats comes in the product mix.

“While the Beauty Boutique stores focus on prestige color cosmetics and fragrances, the new concept stores will be very heavy on skin care and treatment products,” said Rozenwald. “We’re really looking to cross beauty and pharmacy as you would find it in Europe — for instance, pharmacists will be on full-time duty in these stores. As well, we are looking at doing a brow bar, injectables, nutraceuticals, facials and other treatments. We will also bring in a range of brands that you won’t see everywhere in Canada. It’s about taking beauty to a more sophisticated level.”

The first beauty store with the new format is expected to open in Ontario in July and is expected to feature about 5,000 square feet of selling space, slightly smaller than a traditional Shoppers Drug Mart location. Eventually, Rozenwald hopes to launch several hundred of these new stores in Shoppers Drug Mart stores throughout Canada.

In addition to its new concept stores, Shoppers Drug Mart will roll out 40 additional Beauty Boutique units this year, noted Rozenwald.

“Evolving our beauty offering is a key component of our growth strategy,” stated Jürgen Schreiber, president and chief executive officer of Shoppers Drug Mart. “This new concept will allow us to offer customers a unique and upscale beauty experience. At the same time, it provides us with a platform from which to launch new and exciting prestige brands and exclusive lines, as we continue to expand our presence in the marketplace.”