Superdrug reports 2.3% growth in revenue in the year to 30 December 2017,  pre-tax profits also increased by 16% to £92.9m.

Driven by strong LFL growth and new store openings

Health and beauty specialist, Superdrug has revealed 2.3% growth in total revenue to £1.2bn in 2017 and pre-tax profits increased by 16% to £92.9mn.

The positive result was driven by 2.5% growth in LFL store sales and 22 new store openings.

A range of categories benefitted from sales growth, but skincare and health and wellbeing performed particularly strongly. Skincare sales grew by 10% and health and wellbeing sales increased by 8%, boosted by the continued success of its growing pharmacy business and online doctor service.

The A.S. Watson owned retailer also attributed its strong performance to the success of its partnership with ITV's Love Island. The sponsorship, along with the roll out of new brands such as Revolution helped to drive cosmetic sales, increasing Superdrug's market share of the sector to 32%.

The retailer has sponsored the reality show again this year, unveiling a new and exclusive range of products to help drive sales further.

Online sales boosted by investment in digital

Online sales grew by over 30% due to business-wide investment in digital capabilities and international expansion. The platform benefitted from improved website usability, a new mobile app and an extended delivery service, helping to drive sales. The retailer also extended its online service to new markets including Sweden, Finland and Denmark.

Want to know more?

Retail analysis subscribers can read our latest health and beauty insight here.

We take a look at how retailers are becoming increasingly imaginative in executing seasonal within the health and beauty category.

M&S’ Beauty Box: providing value on summer essentials

The new beauty box is available to purchase for £15 when spending £40 or more on Clothing, Beauty and Homeware.

The content of the box is worth a total of £135 and includes a range of both full size and sample size items ranging from skincare and haircare to pillow sprays and make up.

Sample size products will  offer convenience to holiday shoppers.

The strategy is a great way of offering value and providing excitement for customers, whilst building M&S's reputation in the beauty category.

The box is available both in-store and online and includes several M&S private label products. This is a strategic way to encourage shoppers to try new products and incentivise repeat purchases.

Source: IGD store visit

Asos’ Holiday Countdown Calendar: creating shopper excitement

Online-only operator asos has introduced a holiday countdown calendar containing twelve branded health and beauty products including skincare, make-up and haircare items.

The advent-calendar style strategy maintains engagement with shoppers across the twelve days.

It is also a fun method of generating shopper excitement in the lead up to their holiday.

The calendar is available to purchase on the asos website under the ‘Face + Body’ genderless range.

Source: Asos.com

Superdrug's Love Island tie up: creating differentiation with exclusive ranges

Beauty specialist Superdrug has partnered with the ITV reality show Love Island for the fourth consecutive year.

The retailer has launched a new and exclusive range of products inspired by the show, including branded and private label products.

Results from the campaign have been very positive, ITV media reported 200,000 visits online after each show. 

Superdrug is also using its social media platforms to engage with Love Island fans, running a competition via Instagram which offers viewers the chance to win tickets to the Love Island final. 

This is a great way for Superdrug to differentiate itself with an exclusive range of on-trend cosmetics, tailored to its younger target audience.

Source: Superdrug Instagram

Want to know more?

Retail Analysis subscribers can view our latest health and beauty insight here

 

A.S. Watson has announced plans to open 1300 new stores this year, equalling a new store every seven hours.

Plans to roll out a new store every seven hours

A.S. Watson has announced plans to add 1300 new stores to its global portfolio, totalling to a new store every seven hours.

A.S Watson currently operates 14,300 stores, across 24 different markets, under 12 different fascias.

The retail group has previously announced its ambitious plans for expansion both in the UK, and globally.

Group Managing Director of A.S. Watson Group commented on its plans, “A.S. Watson Group is the world’s largest international health and beauty retailer. With the speed of opening one store in every seven hours, ASW plans to open 1,300 new stores worldwide this year and continues to expand in Hong Kong.”

A.S. Watson is also committed to developing its digital capabilities, announcing further investment targeted at enhancing store experience for its customers and improving business efficiencies.

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