Superdrug saw strong trading over the four-week Christmas period to 30 December, with total sales up 9.2% and like-for-likes growing 7.1%.
The health & beauty retailer noted that its continued focus on O+O (Offline plus Online) and investment in providing “high-performance products at an affordable price” was a significant driver of growth, alongside a good uptake of member-only deals amongst members of its loyalty scheme.
Sales of Superdrug’s own-label products were up 10% year-on-year as cash-strapped shoppers switched to its “affordable” products. The retailer’s Studio London cosmetics range was the fastest-growing and contributed to Superdrug achieving 20% category growth in cosmetics and 9.1% volume growth in December.
The retailer noted that it now holds a 40% market share of mass-market cosmetics, its highest share in 10 years.
Meanwhile, own-label gift sets and oral care electricals also proved popular over the period. The retailer highlighted that a category hero was the Superdrug ProCare Water Flosser, which landed on shelves in quarter three and went on to sell more than three times the number of units that its branded counterpart had sold all year.
Superdrug has also invested heavily in the expansion of its Beauty Studio services, which recorded one of its biggest sales months in December, with sales up 20% year-on-year.
Meanwhile, the golden quarter saw the retailer’s online app sales up 74% and 127,000 new registrations for its Health & Beautycard, with total membership reaching 18.1 million thanks to the launch of its new ‘VIP Rewards’ offer.
Superdrug’s CEO Peter Macnab commented: ‘We are exceptionally pleased to be reporting strong Christmas results and appreciate our customers continued support. We understand the pressures customers are currently facing and are committed to supporting them and offering the very best in accessible health and beauty.
“The strong sales growth in own brand really demonstrates that customers are seeking quality products from a brand that they can trust, at an affordable price. Our continued investment in to expanding the store estate and digital services, as well as in innovation, remain imperative and has helped contribute to an increase in sales throughout the December period.”
NAM Implications:
- A 7.1% like-for-like increase vs inflation of say 8% suggests volumes were maintained…
- However, own-label growing at 10% suggests a fall in brand sales vs O/L.
- Meanwhile, key for suppliers to ensure they achieved their fair share of sales and investment.
- Its 40% market share of mass-market cosmetics makes these Superdrug trends even more important for branded suppliers…
