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Beauty Retail Sector To Expand this Year

February 7, 2014

The economic recovery will be the most powerful driver for the beauty, cosmetics and fragrance store industry, according to recent data from IBISWorld. According to the research firm, major players such as L Brands, Sally Beauty Supply, Ulta and Sephora are fueling the marketplace.

IBISWorld forecasts that consumer confidence will continue growing, prompting consumers to spend more money on discretionary goods, such as cosmetics. Consequently, from 2013 to 2018, industry revenue is forecast to grow at an average annual rate of 5.2% to $16.8 billion. Also, the number of store locations is expected to rise at an annualized rate of 4.3%, reaching 126,534 stores in 2018.

IBISWorld projects that the top four companies will maintain their position in the market and account for an even larger portion of the industry by 2018.
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