Superdrug, the leading health and beauty retail chain, achieved remarkable success during the festive season, witnessing a substantial 9.2% surge in total sales in December and an impressive 7.1% growth in like-for-like sales. This holiday triumph is credited to the well-known «lipstick effect» and the irresistible appeal of Superdrug’s own-brand products.
A standout highlight includes a noteworthy 10% spike in own-brand sales, propelled by enticing gifting options and exclusive loyalty club deals. Cosmetic, fragrance, and oral care categories shone, with a particular focus on consumers investing in dental electricals, exemplified by the exceptional performance of the Superdrug ProCare Water Flosser.
The Beauty Studio experienced a significant 20% uptick in sales, perfectly aligning with the spirited Christmas party season. Superdrug’s strategic investment in expanding Beauty Studio services, including the recent launch in Jersey, played a pivotal role in this success. Additionally, the company celebrated a milestone with its 500th piercing store, witnessing a remarkable 54% increase in piercing services compared to 2022.
The importance of own-brand products is underscored, with Studio London emerging as the fastest-growing and most extensive own-brand range. This contributed to an outstanding 20% year-on-year category growth in Cosmetics and a substantial 9.1% volume growth in December. Notably, the Studio London 8-piece brush set emerged as the top-selling product, showcasing the effectiveness of Superdrug’s partnership with beauty broadcaster Ateh Jewel.
Superdrug now commands a formidable 40% market share of mass-market cosmetics, marking its highest share in the last ten years. Sales through the retailer’s app soared by an impressive 74%, courtesy of the introduction of VIP rewards.
The company’s success, both online and offline, is attributed to its commitment to offering high-performance products at affordable prices. The exclusive members-only deals for loyal Health & Beautycard customers played a pivotal role in addressing the challenges posed by the cost-of-living leading up to Christmas.
In the peak trading weeks preceding Christmas, Superdrug achieved remarkable sales milestones, with three own-brand gift sets sold every second and three fragrance sets sold every minute. Popular scents included Ariana Grande, Versace Eros Flame, and CK Euphoria.
Industry analysts have lauded Superdrug’s stellar performance, highlighting the continued influence of the «lipstick effect» and consumers’ inclination towards budget-friendly own-brand products. The retailer’s ability to captivate thrifty shoppers with a diverse range of prices and its strategic investment in loyalty schemes have been identified as key factors propelling its success.
Jacqui Baker, Head of Retail at RSM UK, emphasized the enduring allure of health and beauty, with consumers opting for affordable luxuries despite economic constraints. Sofie Willmott, Associate Retail Director at GlobalData, acknowledged Superdrug’s resilience and the sector’s attractiveness, particularly during periods of restricted spending.
Superdrug’s robust results align with predictions, positioning health and beauty as the top-performing non-food sector in the golden quarter. The retailer’s success, alongside others in the sector, underscores the accessibility of beauty items as gifts and treats, making it a compelling choice for consumers even in challenging economic times.
