Once the place for beauty, drugstores face myriad challenges. BeautyMatter digs into its challenges and opportunities.Something isn’t adding up.Despite consumer concern over the economy and increasing prices, shoppers have yet to trade down to mass beauty options. According to Circana data from January through September 2024, prestige sales rose 7% compared to only 2% for mass options.However, regardless of disappointing overall third-quarter results, Target Corporporation called beauty one of its strongest categories, with sales up 6% year over year. Walmart recently reported that its beauty sales increased more than 20% in its third quarter for its online marketplace store.Peeling away the layers constituting "mass,” it becomes apparent that drugstores are ailing and dragging overall gains down.There has been a steady decline for the drug channel, which once commanded 51% of sales, outpacing department store competitors. Data from NielsenIQ for the 52 weeks ending June 15, 2024, shows drug dollar sales dropped 1.5% while units plummeted 9.5%.By contrast, discount store sales rose 2.3%. Undoubtedly, the presence of brands from Ulta Beauty sparks growth, but the retailer is also quick to add hot new brands and exclusives like Blake Lively’s Blake Brown hair care line and Maesa’s Fine’ry.Supermarkets generated 8.4% gains (albeit on a smaller base), thanks to the addition of more beauty products in food chains like Hy-Vee and HEB. Dollar stores are enhancing beauty departments, especially with a cadre of dupes and the addition of brands such as e.l.f. Sales climbed 3% in the channel.The drug channel needs a remedy. How did drugstores fall out of favor?