AT: Drugstores In Austria

The strong position of drugstores and the increase of supermarkets/hypermarkets’ activity in cosmetics and toiletries dominated the retail landscape in Austria for the last few years. Private label was pushed in these distribution channels as it offers added profits at low risk, mimicking the best selling brands.

Drugstores are dominated by chains: Bipa, DM Drogeriemarkt and Schlecker.
Bipa and Billa, one of the large supermarket chains in Austria, belongs to the German Rewe group and offers the same private label brands and thus generates a stronger brand impression of its range.

They made further attempts to build upon their specific strengths as specialists: in the case of Schlecker, a very deep market penetration; in the case of DM Drogeriemarkt, the offering of services such as hairdressing; and in the case of Bipa, an upmarket move with more premium brands.