Super-Pharm is likely to cut 300 cosmetics staff. The company, which employs some 3,000 staff through cosmetics suppliers, has demanded that the suppliers cut back on their activity in Super-Pharm.
The company said that the measure was part of its general policy of reducing the nationwide presence of low-cost cosmetics brands, such as Rimmel, Bourjois, and L'Oreal, and replacing them with larger stands of the more prestigious brands, which are regarded as more profitable. Super-Pharm hopes that in this way, their suppliers will be able to obtain larger discounts from the manufacturers, which will reduce the price to the consumer.
Super-Pharm's measure is a response to increased online sales, after also launching its own website for ordering the chain's products in recent months. Israelis are also making overseas orders, and Super-Pharm also faces strong competition from duty-free shops and from Shufersal Ltd. (TASE:SAE), Israel's largest retail chain, in its pharmacy business, including expansion of Shufersal's cosmetics business through the acquisition of New-Pharm.
Super-Pharm said in response, "The chain has no intention of reducing the number of its employees. The cosmetics suppliers currently employ 3,000 cosmetics staff in the chain's branches. As a result of changes in consumption habits and the reduction in the number of low-cost brands sold by the chain, the number of cosmetic staff will be cut by 300, but all of them, without exception, will be offered other jobs in a variety of positions. Super-Pharm is continuing its growth and is constantly hiring new staff."
Published by Globes [online], Israel Business News - www.globes-online.com - on December 25, 2017
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