Boots yesterday unveiled a new 60-strong budget range to help consumers tackle the rising cost of living. Juliet Cuell, retail analyst at GlobalData, offers her view:
“Boots’ launch is well timed and will ensure it remains a market leader. It will also ensure that the company will not lose out to rival discounters, including Savers, Aldi and Lidl, which have been growing their market share amid the cost-of-living crisis, having built robust reputations for their own brand toiletries and everyday items. Boots’ extensive and easily accessible store network will appeal to those conscious of making costly trips to town centres and will ensure it remains front of mind among shoppers, as Aldi and Lidl push on with store expansion plans.
“Over one-fifth of consumers expect to trade down to own brand beauty or switch to cheaper retailers for beauty purchases, according to GlobalData’s monthly UK consumer survey conducted in August 2022, and consequently, we estimate that Boots’ share will fall 0.2ppts to 15.4% in 2022 compared to 2021. The company will need to expand its Price Advantage scheme to include a greater variety of brands, like P20 suncare, or risk losing shoppers, who want to continue purchasing from trusted and established brand names, to discounters and the big four grocers.”
NAM Implications:
- Given Boots footprint and franchise, this value range could slow the migration to the discounters.
- But growth will be at the expense of brands…
- Time for suppliers to ramp up convincing reasons to shop at Boots.
