(Ap) – the stock of a number of specialised beauty retailers have dropped on the Monday following Amazon.com Inc. said it had begun the sale of personal care products used by licensed stylists, barbers and estheticians.
FILE PHOTO: The logo of the web service of Amazon, is pictured in this June 8, 2017, in an illustration picture. REUTERS/Carlos Jasso/Image/File Photo
Shares of Sally Beauty Holdings, which are focused on professionals in the industry fell to 17%, while those of Ulta Beauty, Inc., fell about 3 per cent.
They are simply the latest to suffer from Wall Street’s concern about the moves by the world’s largest retailer, in a series of niche-or less-regulated markets.
Last year, in the US, pharmacy chains and drug wholesalers, such as cvs, Walgreen, and McKesson Corp. (a). lost billions in market value when Amazon took its first step in to the online pharmacy by buying small existing player PillPack.
In the Amazon, is usually made use of in the size and profile of a wider range of products, at lower prices, easing the pressure on margins of existing players.
“At the moment, scientists often travel to the more how to make the supply of locations to get the required inventory,” Jefferies analysts said. “We expect Amazon quickly to become an important channel for brands to get the top deals on the platform.”
In the Amazon, said scientists would need to upload it on their state-issued licenses, and how to create a business account in order to purchase products from the store, which the company said it would supply the brands, such as Wella and OPI, a Professional.
The input is a direct threaten about 19 percent of Sally Beauty’s operating profit, and an additional 33%, it was probably the pressure of increased competition, according to DA Davidson analysts said.
Ulta, however, it will be less of a pain, as it mainly sells cosmetics and styling tools, that is, only 19% of the total turnover, analysts said.
The companies do not immediately respond to multiple requests for comment.
Shares of the e-commerce retailer, were trading 0.2% higher at $1,913.16.
Reporting Vibhuti Sharma in Bengaluru; Editing by Shinjini Ganguli and Arun Koyyur