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Superdrug reports a 3.3% lift in sales to £1.28bn in the 52 weeks to December 29th 2018.

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Superdrug and Co-op set to enter a food-to-go partnership and Co-op set to open new distribution centre.

Co-op tie-up sees Superdrug enter the meal deal market

Health and beauty specialist Superdrug has entered a new food-to-go partnership with Co-op.

The two are trialling a new offer enabling Superdrug shoppers to pick up their lunchtime meal deal for under £4.

The offer will be available in seven branches located in key travel hubs. Stores included in the trial are East Midlands, Bristol and Edinburgh Airports, and in Brighton, Sheffield, and London’s Victoria and Fenchurch Street Railway Stations.

The move follows the news that Boots is trialling a 10% student discount offer, which brings its meal deal offer down to an extremely competitive price of £2.96.

Chris Brown, Superdrug Head of Personal Care & Convenience comments: “We are delighted to be introducing Co-op food-to-go in some of our travel branches. We know our customers will appreciate the range available, and the fact it offers a great value choice for busy commuters and travellers.”

Extending the reach of Co-op private label products

Co-op will supply a range of over 40 of its products to the health and beauty specialist, including vegan and gluten-free options. The move follows a two year food-to-go development programme for Co-op and aligns with its continued efforts to drive its private label range, expanding into new channels and reaching new shoppers.

The news comes as WH Smith's trial with Sainsbury's, which began last summer, ends. The trial saw Sainsbury's roll out its food-to-go products in nine WH Smith stores.

Matt Hood, Trading Director, Co-op Food, said: “We are continually exploring new ways to bring our award-winning products closer to shoppers and to reach new customers. Becoming food-to-go partner for Superdrug is an exciting development as Co-op continues to grow its brand, further increasing the accessibility of own-brand products."

Co-op set to launch new distribution centre

Co-op is set to open a new distribution centre at Symmetry Park, Biggleswade.

The 661,000 sq. ft site, set to open in early 2022, will support existing stores and growth plans for London, the South and South East.

Andy Perry, Supply Chain & Logistics Director, Co-op, said: “The infrastructure and site selection will deliver greater agility, scale and efficiency - improving service and availability at existing stores while building capacity to support our store investment programme and ambitions for continued growth. The new site will provide greater scale while future-proofing our operations.”

The news follows the opening of its £6mn distribution centre at Inverness Airport Business Park, Scotland, in August 2018.

 

Want to know more?

Retail Analysis subscribers can read and download our latest insight on Drugstores here.

Retail Analysis subscribers can read and download our latest insight on Co-op here.

Drugstore operator Rossmann is investing in expanding its estate and modernising existing branches as it seeks to reach its €10bn turnover target.

Expansion and modernisation plans

Rossmann has announced investment of €215m in its store estate, both new openings and modernising existing stores.

The retailer currently operates 3,900 stores across seven markets in Europe.

A total of 175 existing stores will benefit from the revamp this year and the drugstore operator plans to open 200 new stores, both in Germany and internationally.

New store openings will have an increased sales area, c.700 sq. m, compared to existing stores which are on average 580 sq. m, designed to enhance the in-store experience for shoppers.

Challenging market conditions including high rental costs,  Rossmann's assessment  and optimisation of its portfolio will be ongoing.

In reach of €10bn turnover

This activity will help Rossmann reach its target turnover of €9.9bn in 2019, an increase on €9.46bn achieved in 2018.

The retailer has outlined that store investment is particularly relevant for the business, as online accounts for a relatively small proportion of sales.

See inside Rossmann's Cologne flagship

Retail Analysis subscribers can read and download our latest store visit report here.

Superdrug looks to add new beauty products to its range, launches beauty banks and rolls out in-store breast cancer consultations.

Seeking new beauty brands

Superdrug has announced its plans to host it Open House event again this year, which invites new beauty brands to meet the retailer's senior buying team.

The event will take place in May at its head office in Croydon.

The purpose behind the event being its ambition to boost its beauty product portfolio, in line with its priority to 'be the best in everyday accessible beauty'. As part of the event, a chosen beauty brand could receive a support package worth £100,000.

The package will also include a personalised plan co-created by the supplier and Superdrug's marketing team which may include features in DARE Magazine, promotion via Superdrug's social media channels, in-store promotion, CRM, in-store media support for example digital screen POS and launch features on store radio.

Superdrug has stated a particular interest in brands that are halal certified or brands that address eco-concerns. Simon Comins, Superdrug commercial director, comments: "We want to see brands from people that know their customer, care about the planet, are looking to spread the word about their passions and have products that will make us go wow.”

Giving back: Beauty Banks

Superdrug has teamed with Beauty Banks, a non-profit organisation that collects and redistributes personal care items to those in hygiene poverty in the locality of that store.

The retailer has launched Beauty Bank drop points at a selection of its stores.

Shoppers simply need to purchase an item from the wish list displayed on the Bank and deposit it on their way out. Items on the wish list include shampoo, deodorant, soap, toothpaste and razors.

This is a simple but effective strategy to encourage shoppers to give back and make a difference to local communities.

Leading in services: breast cancer consultations

Superdrug has partnered with breast cancer awareness charity CoppaFeel! to launch in-store breast checking consultations.

The launch follows research conducted by Superdrug which found that 82% survey participants didn’t feel comfortable talking about any changes in their breasts.

The move is designed to reduce this level of discomfort and promote awareness amongst young people to improve rates of early diagnosis.

The services were made available on 20th March in 56 of its store health clinics nationwide. The retailer hopes the new service will support over 100,00 women in its first year.

Shoppers are simply required to pre-book an appointment, before heading to the store to speak to a trained nurse about how to carry out examinations and recognise symptoms.

The move aligns with other developments we're seeing in this space, both in the UK and internationally. For example, Boots recently launched in-home health test kits, supporting customers in finding new ways to feel in control of their health and wellbeing.

In a similar move, US-based Walgreens is expanding its service offer, finding new ways to bring shoppers into stores and foster loyalty through services.

 

Want to know more?

Retail Analysis subscribers can read and download our latest insight on Drugstores here.

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