The neighborhood CVS or Duane Reade is a classic go-to source for that last-minute stocking stuffer for a relative, friend or associate. From Burt’s Bees gift sets to celebrity fragrances, mass market stores always seem to have trendy gift ideas at a reasonable price point. Therefore, in the current gloomy economic state-of-affairs, chain drugstores fared well for Holiday 2008, according to a recent report from WWD.

The WWD report says that even thought this past holiday season was one of the worst in more than 15 years, somehow, mass marketers managed to post slightly better-than-expected beauty sales, led by fragrance and skin care, and clean sell-through on value purchases.

In an interview with a regional chain drugstore executive, WWD reported that beauty fared better than general merchandise, as the poor economic condition led women to want to look better. Sales at this chain showed that “skin care was fairly healthy; cosmetics was not as good as skin care but it was not on the floor, either, and in hair care, we are seeing trade-off from high-end to medium- and low-end brands. Customers are cherry-picking brands on promotion, seeing how they can get the bargains,” the executive told WWD, noting that depletions in cosmetics negatively affected sales, since many retailers are changing over their current sets to get ready for Spring 2009.

In contrast, WWD also reported that many prestige marketers in the U.S. took a hit this holiday season, and the European marketplace is slowing down.