Superdrug sees sales cross £1 billion thanks to store expansions and own brand growth
09 Jul 2024 --- Superdrug’s annual sales increased 11.8% to £1.5 billion (US$1.9 billion), boosted by store expansions and own brand sales.
Pre-tax profit jumped 43% to £111.6 million (US$142.8 million), compared to £77.8 million (US$99.8 million) in 2022.
The UK health and beauty giant increased its market share for the third consecutive year, rising 10.6% compared to 8.9% in 2020.
Peter Macnab, CEO of Superdrug, says the company’s “vision is to be the UK’s leading accessible health and beauty retailer, with high-quality, affordable products at the heart of everything we do.”
Stores making sales
Superdrug attributes the growth to its investment in new stores. It opened 14 new stores in locations such as The Trafford Centre in Manchester, Brent Cross Shopping Centre and Braehead last year. These store openings generated over 400 jobs, taking the total number of employees to 13,845.
“Over the last year, we’ve continued to invest in our store estate to provide customers with best-in-class shopping experiences. The store sales growth gives us the confidence that our strategy is working and new stores are being welcomed by customers and the local community,” explains Macnab.
Peter Macnab, CEO at Superdrug.The company also modernized and refitted 45 of its existing stores. It created shopfronts, new floor layouts, upgraded store Wi-Fi, improved flooring and ceiling tiles made from bio-soluble mineral wool, clay and starch and energy-efficient LED lighting.
Some of the retailer’s larger stores carry a broader product offering, including Beauty Studios, premium fragrance counters and health services.
Popular brands
Members made over 60% of the company’s total sales, which it said highlights increasing levels of brand loyalty and competitive prices.
Macnab says Superdrug focused on pricing as consumers faced persistent inflationary pressure:
“We invested heavily to keep our prices competitive and help families keep costs down. In May 2023, we reduced prices by 20%, equivalent to VAT, across the Solait sun protection range to help make products more affordable for families and rolled out additional members-only pricing across own brand ranges.
Superdrug’s own brand products also drove sales. Due to strong demand, Its Optimum Collagen Night Cream sold out twice, and its Studio London line was popular as well.
“The Superdrug Mobile tariff was also frozen for another year following an investment in a new platform and 5G services to provide our customers with more value for money,” adds Macnab.
Besides its own brand achievements, exclusive launches such as Biore’s SPF, NYX x Barbie, and Eilish fragrance by Billie Eilish comprised a high proportion of sales.
By Sabine Waldeck
