Following today’s release of Superdrug’s figures for the four weeks ending 31st December 2023; Sofie Willmott, associate retail director at GlobalData, a leading data and analytics company, offers her view: “Superdrug’s wide range of prices across gifts and beauty attracted Christmas shoppers and festive party goers, driving the health & beauty player to achieve impressive 9.2% sales growth in December 2023. The retailer has successfully captured consumers that adjusted their shopping habits with almost 45% of UK health & beauty shoppers trading down to cheaper toiletries within their usual retailer or switching to a cheaper retailer (according to GlobalData’s UK survey conducted in November 2023). Its own brand ranges resonated with thrifty shoppers with sales up 10% against a strong comparative and sales of its own make-up range, Studio London rising 20% on last year, which will drive higher profit margins for Superdrug.
“GlobalData predicted health & beauty would be the best performing non-food sector in the golden quarter and Superdrug’s strong results, alongside Boots’ performance for its quarter to the end of November (comparable retail sales +9.8%), demonstrate the resilience of the sector. As well as beauty items being accessible gifts and affordable treats, making the sector attractive in times of restricted spend, both retailers have invested in their store estate and have benefitted from the accessibly of their locations as shoppers have favoured physical stores. Additionally, their loyalty schemes have been at the forefront with member pricing being clearly communicated, appealing to shoppers seeking value for money and discounts.
“Superdrug must continue to focus on price and value for money in 2024 to continue to compete with the supermarkets, as well as market leader Boots which will be motoring on with its store improvements and focus on beauty. Sales via Superdrug’s services arm, Beauty Studio, rose 20%, proving that this point of difference to other key players in the market engages shoppers and should be developed further in the year ahead.”
