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The changing face of health and beauty in the UK

04/06/2014

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Research from Kantar Worldpanel shows the growth in the health and beauty sector is with discounters and bargain stores

Research from Kantar Worldpanel shows the growth in the health and beauty sector is with discounters and bargain stores

UK health and beauty sales grow in the discounters and bargain stores.

Research from Kantar Worldpanel shows the growth in the health and beauty sector is with discounters and bargain stores.

In quarter four last year health and beauty sales grew 17% in the discount retailers such as Aldi, and 9% in bargain stores like Poundland - adding a combined £9 million to the health and beauty market. This compares with the high street which increased just 1%. 12 million people per quarter now buy health and beauty products in bargain stores compared with 16 million in Boots and this gap is narrowing.

Sales at grocers' main stores, meanwhile, declined £18 million in the fourth quarter of last year. In many ways this is a recessionary trend; shoppers are increasingly savvy so will compare brands and buy them where they perceive they get the best value for money.

To address this, supermarkets should consider more promotions to win back the 'value' space and leverage their online presence.

Even though sales increased by 17% last year, online still only accounts for less than 6% of health and beauty sales. Supermarkets already have dedicated beauty web pages, but need to do more to drive their millions of shoppers toward them and create a more rewarding experience.

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Fraser McKevitt

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