Watsons Personal Care Stores (Phils.) Inc., a joint venture between SM Group and A.S. Watson & Co. Ltd. of the Hutchison Whampoa Group, is aggressively expanding its outlets this year with P80-million investments as it eyes 11 percent growth in sales this year and over 5 percent market share of the P90-billion beauty business in the country.

Robert U. Sun, chief operating officer of Watsons Philippines, told reporters at the official launch of “Beauty by SM” at its flagship SM Makati that the company is investing P80 million this year for new stores and the renovation of existing Watsons outlets.

“We will have a total of 245 Beauty and Watsons stores by end of 2010 from the current 200 outlets,” said Sun.

According to Sun, the company would be spending P50 million this year for the renovation and conversion of between 6 to 10 Watsons stores into its “Beauty” brand and establish 40 new stores in SM Department stores for a total investments this year of P80 million.

“The aim is to make Watsons the beauty destination in the country,” he said.

Watsons, which accounts for at least 6 percent of an SM department store sales, has been growing faster than the industry.

Sun noted that the entire beauty business in the country grew by 4 percent only in 2009 and is expected to grow 6 percent this as against 8 percent growth of Watsons last year.

The cosmetics segment accounts for the biggest share in the domestic beauty business followed by skin care with 15 percent and 5 percent hair.

According to Sun, the Beauty brand is being positioned as a notch higher or the B market than Watsons, which caters to the C and D market.

“The launch of Beauty by SM’s flagship store at SM Makati signals a new era as we now take Beauty to the next level,” said Sun.

SM Makati’s Beauty hall boasts of 1,390 square meters of 7,000 unique products composed of 72 fragrance brands, 36 cosmetic brands, 52 skin care brands and 16 exclusive brands.

Aside from its widest array of beauty products and a newly designed store, Beauty is also armed with trained beauty consultants.