The increasing options available to shoppers is changing the market. Already one-in-five are buying beauty products from internet-only retailers or from discount stores. Moreover there is a high level of satisfaction with the discount stores, suggesting that they would do well to strengthen the upper end of the offer just as they have done with food. But it’s not all bad news for midmarket specialists – they stand to gain from the growing trend away from superstore shopping towards more frequent, smaller shops. High-street specialists, in particular Boots and Superdrug, are well positioned to cater to this demand. Hilary Monk Senior Retail Analyst

Beauty Retailers at a glance
January 2015

Market shares

• Boots still dominates the market, but all the major players have been losing share to discounters and online pure players. The market is changing. There is growth in the discounters, not just because they are lower priced, but because they are seen as offering great value for money. We do not think this is just a recessionary factor but represents a fundamental change in the way we shop. The challenge for the market leaders such as Boots and Superdrug is to take advantage of the changes.

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Performance Indicators

• 2013 was a better year for the two leading specialists, Boots and Superdrug after a poor 2012. Boots registered some growth and Superdrug’s sales decline slowed. But Superdrug’s sister companies, Savers at the bottom of the market and The Perfume Shop somewhat more upmarket, both performed well, reflecting a general trend in the market where shoppers have sought out value at either end of the spectrum.

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Space Allocation

• Department stores devote the most health and beauty space to beauty while the grocers and discounters focus more on basic toiletries. Boots’ beauty offer instore is high profile, but a smaller proportion of