BERLIN — The Parma-Aurel and Intercos perfumery co-ops are joining forces effective July 1 to create a new force in the German beauty market.
The new group, to be called Beauty Alliance Deutschland GmbH & Co. KG, will represent almost 300 members operating more than 900 perfumery doors in Germany. The retail turnover of the new co-op is in the area of 650 million euros, or $787.5 million, the group said, and represents a workforce of more than 7,000 employees. Dollars have been converted from euros at current exchange.
Moreover, the new group will be part of the European Beauty Alliance, a five-country cooperative organization which encompasses 1,300 beauty doors with sales of almost 1 billion euros, or $1.21 billion, Beauty Alliance said.
In an official statement, Parma-Aurel and Intercos said the move “is the answer to the growing concentration in the European perfumery retail scene.” In terms of doors, Beauty Alliance Deutschland is the largest group in Germany, larger than Douglas which operates 420 domestic doors. “But in terms of sales, unfortunately not,” said Reiner Metz, one of Parma-Aurel’s three managing directors with responsibility for finance and membership consultation.
He said response to the new group has been “positive from both the members and the manufacturers. As the trade concentrates, it’s an advantage for both sides to have a stronger partner.”
Parma-Aurel, based in Bielefeld, and Intercos, in Stuttgart, were primarily active in separate geographic regions. “There was very little overlap,” Metz noted. The new group will be headquartered in Bielefeld with a branch in Stuttgart.
Among the many synergy effects, Metz noted that Intercos has a “more individual advertising concept than we (Parma-Aurel), which could be an advantage to some of our members. Intercos had few large, multidoor members, whereas some of ours have 30 doors,” he explained.
— Melissa Drier