Ahead of its potential sale, Boots has been ranked as the top retailer for health & beauty products across several key purchase factors.
Despite the retailer’s recent troubles, the consumer survey by GlobalData found that Boots was ahead of its competitors in terms of product range, value for money, and shopping experience both in-store and online.
Its lead for product range and the in-store shopping experience is significant, setting it apart from its competitors, likely helped by its recent focus on expanding the products and experiences available in its ‘beauty halls’ in new store formats. However, its lead for value for money and online shopping experience is far narrower, highlighting these as key areas for development for Boots’ prospective buyer, which could be the owners of Asda.
Lia Neophytou, Senior Health & Beauty Analyst at GlobalData, commented: “With the company up for sale, Boots’ prospective buyer is set to benefit from the firm’s established reputation among UK shoppers. However, due to the cost-of-living crisis, the buyer must be prepared to further cater to consumers by improving Boots’ value for money as well as enhancing its online shopping experience. These are two key areas for development for the future owner to ensure that the company retains its lead.”
GlobalData noted that Boots’ recent launch of its Price Advantage scheme offering advantage card members lower prices on certain items will appeal to price-conscious consumers but, to ensure consistency, it must incorporate this scheme on its website.
Neophytou added: “To better compete in the health & beauty space, ongoing investment into its online proposition is also a must. Currently, free delivery is only available for orders over £25, while competitors like Amazon offer this at no extra cost for Amazon Prime subscribers. By lowering the threshold for free delivery or developing a delivery saver subscription scheme similar to Amazon Prime or ASOS Premier, this would help to discourage Boots customers from straying to competitors.
“Lowering the threshold for free click & collect services, currently available on orders over £15, would also encourage purchases considering its large store estate comprised of easily accessible outlets.”
Latest quarterly trading figures released last week for Boots showed it had continued to bounce back from the effects of the pandemic. Over the three months to 28 February, total sales at Boots UK climbed 15.2% after recovering from the significant declines last year when its high street and travel sites were impacted by lockdowns, and shoppers turned to supermarkets for their health & beauty needs.
NAM Implications:
- Boots are ahead of its competitors in terms of product range, value for money, and shopping experience both in-store and online…
- It is patently obvious that suppliers helping them maintain these performance measures have to benefit, at least in terms of buyer attention…
- The rest is up to you.
