RUSSIA. LVMH-owned French beauty retailer Sephora is reportedly poised to purchase L’Etoile, Russia’s largest fragrances and cosmetics chain by volume of stores. If successful, the deal is expected to be closed in the second half of 2003.
Since Sephora joined the LVMH stable in 1997, its retail network has expanded significantly. It has 400 stores in Europe, spread across nine different countries. It entered the US market in mid-1998 where it now has about 80 doors.
Russian chain L’Etoile currently has 101 outlets in Moscow, plus a smaller presence in several other cities. According to the company, sales in 2002 hit about US$90 million. Last year the total Russian beauty market was worth around US$4.7 billion.
Sephora is reportedly keen to establish a presence in Russia at the earliest opportunity. Earlier this year German beauty powerhouse Douglas entered the market, via a joint venture with Russian perfumery group Rivoli, which took effect on 1 January 2003.
