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UK Health & Beauty 2011

Verdict Research Ltd
September 2, 2011
239 Pages - SKU: VERA6647634

Abstract Table of Contents Search inside this report Related Reports

Countries covered: United Kingdom

The health & beauty market is set to grow by 3.4% in 2011, taking its value to £18.5bn. This will see it outpace total retail spending, which is expected to grow by 1.9% in 2011. Though consumers’ real incomes are being squeezed, hitting spending overall, the need for small luxuries in every day life and the low purchase price of many items means they are continuing to spend on health & beauty.

Health & beauty expenditure 2001-2011e, category and channel performance 2006-2010 with forecasts for 2011

Market shares 2006-2011e, sales, space, operating profits and margins and sales densities of Top 14 retailers in the sector

Outlook for the market including changing consumer shopping habits, emerging trends and growth strategies for health & beauty retailersThe resilient spending patterns in health & beauty are tempting non-specialists to target the sector. Budget variety retailers including B&M Bargains, Poundland, 99p Stores and Wilkinson are opening more stores as high street property becomes vacant. They are also upgrading their shop environments to attract midmarket shoppers who are trading down.

Department stores are reinforcing their health & beauty role as pampering zones by offering wider choices of services. House of Fraser is adding to its variety of treatments and services with brands like DestinationSkin and Clarins Spas, while John Lewis is adding beauty spas to stores in Reading and Cheadle this summer.

Demographic trends dictate that over 45s will increase rapidly while the under 45 population will stagnate in the next decade. In particular 55-64s will grow in number and still have high incomes pre-retirement. They appreciate deep ranges, good customer service and high quality products.

What are the threats facing the market and how can I take full advantage of its potential?

How have consumers and retailers reacted to recent economic turbulence?

What are the business models and key performance indicators of my competitors and how can I outperform them?

EXCUTIVE SUMMARY: Key findings; Buoyant health & beauty market to grow 3.4% to £18.5bn in 2011;; Grocers win share with increasing store space and promotions;; Boots suffers erosion;; Pound shops and clothing specialists zero in on health & beauty;; Niche stores target the fragrance market;; Superdrug tries a new image;; Pampering boom drives services offered by retailers;; Loyalty schemes gain popularity;; Population shifts to boost 55-64s and 25-34s markets;; Better store environments needed to get men shopping.; Main conclusions; (Untitled sub-section)
MARKET ANALYSIS: Definition; Overview; Holding up despite pressure on consumers; Category breakdowns; (Untitled sub-section); Channels of distribution; Grocers increase their lead; Grocers; Health & beauty specialists; Department stores; Mail order; Impact of rising pharmacy numbers
NHS receipts for all health & beauty retailers
COMPANY DATA ANALYSIS: Health & beauty market shares; Grocers gain ground on Boots; Overall market shares; Sainsbury's and Tesco to add the most share in 2011; Key operating statistics; Sales and space growth; House of Fraser grows the quickest; Grocers and The Perfume Shop add space; Sales densities; The Perfume Shop is density winner; Space allocation
KEY ISSUES: Health & beauty outperforms; Consumers pamper themselves in renewed downturn; Buoyancy attracts non-specialists; Impact of grocers’ development; Fashion retailers move in; Overcoming the credibility gap; Store format innovation; Superdrug responds to fashion stores; Luxury market focuses on experience; High fashion offers minimal chic; Men’s health & beauty market; Men underspend; What makes men buy?; Drastically different purchase patterns; Creating the right environment; Mass market approach; Loyalty schemes go head to head; Superdrug takes on Boots; Benefits to retailers; Zero sum game?; Targeting services income; Further development in department stores sector; Tesco moves in at mass market level; Market positioning; New entrants from younger and downmarket ends; Superdrug targets young fashion audience; Demographic trends; Number of over 45s to grow; 55-64s a long term winner; What the over 45s want; Department stores to benefit; 25-34s will also grow; Under 25s market will contract; Outlook and strategies for success; Consumers under pressure need feelgood factor; Store design key to communication for H&B specialists; Men need right environment; Loyalty allows better targeting; Services part of growth strategy; Age shift will boost over 45s and benefit department stores; 25-34s will also be key to premium and niche brands; Response to non-specialists is key for specialists
ASDA: Expands on to high street with Netto stores; Recent key events; Presses price button harder than ever; Proposition; Financials; Price push helps performance; Space; Aims to make up lost ground; Space allocation; Market share; Steady upward trend; Outlook; (Untitled sub-section)
AVON: Online poses challenge to model; Recent key events; Makes most of brand’s personal contact with customers; Proposition; Financials; Sales to flatten out in 2011; Struggles to make a profit; Market share; Outlook; Online a challenge but also an opportunity
THE BODY SHOP: Revamps product ranges; Recent key events; Pushes development with international slant; Proposition; Financials
UK sales remain under pressure: Sales hit by competition; Space; Decline in store numbers as franchises disappear; Space allocation; Market share; Outlook; Needs more product innovation and better marketing
BOOTS: Own label and efficiency drive profits; Recent key events; Increased efficiency; Proposition; Financials; Sales growth slows; Operating margin grows; Space; Focus on efficiency rather than growth; Space allocation; Market shares; Outlook; Under pressure along with rest of high street
DEBENHAMS: Multichannel key to growth; Recent key events; Own brands, multichannel and international main growth pillars; Proposition; Financials; Online and international support growth; Online speeds ahead with multichannel services expanding; Operating margins under pressure; Space; Presses on with space expansion; Space allocation; Market share; Outlook; Opportunities in international, own label and online but also risks
HOUSE OF FRASER: Builds beauty services proposition; Recent key events; Own brand development moves from fashion into beauty; Proposition; Financials; Growth slows in 2011 but remains strong; Slow recovery in profit margins; Space; Focuses on improving existing stores; Space allocation; Market share; Outlook; Further margin improvement needed
LLOYDSPHARMACY: New strategy needed to improve profits and growth; Recent key events; Moves to develop non pharmacy revenue; Proposition; Financials; Sales sustained by prescriptions; Profitability below its peak; Space; Pharmacy numbers contract in 2010; Space allocation; Market share; Outlook; Needs to address non-dispensing revenue
MORRISONS: Expansion focused on smaller formats; Recent key events; Accelerates pace of development; Proposition; Financials; Inflation and space sustain sales growth; Margins continue to recover; Space; Format flexibility helps expansion; Space allocation; Market share; Outlook; Grows space but faces more grocery competition
SAINSBURY'S: Allocates new store space to health & beauty; Recent key events; Non-food push intensifies; Proposition; Financials; Space, inflation and non-food all increase sales; Slow rise in margins; Space; Non-food growth seen as opportunity; Space allocation; Market share; Outlook; Space expansion should increase share
SUPERDRUG: Overhauls brand but grocers a threat; Recent key events; Overhauls image and encourages loyalty; Proposition; Financials; Sales fall back but profits rise; Struggles to make profits; Space; Improves existing stores; Space allocation; Market share; Outlook; More challenges than opportunities
TESCO: Space drives share growth; Recent key events; New chief executive moves to strengthen non-food; Proposition; Financials; Sales driven by space growth; Profit margins still high; Space; Caught in space race with grocery rivals; Space allocation; Market share; Outlook; Targets return to growth in non-food
THE PERFUME SHOP: Rapid store expansion; Recent key events; Growth and brand investment; Proposition; Financials; Sales to recover on higher space growth; Retailer blames lack of new launches; Space; Rapid expansion; Space allocation; Market share; Outlook; Dynamic store growth in prospect
WILKINSON: Grows into nationwide chain; Recent key events; Revamps and grows store portfolio; Proposition; Financials; Rapid rise in sales; Sales more than double since 2002; Space; Growth in store space slows; Space allocation; Market share; Outlook; New image will appeal to mainstream shoppers
SMALLER RETAILERS: 99p Stores; Tests new format to tempt upmarket shoppers; Analysis; Feelunique.com; Rapid growth but VAT threat; Analysis; L'Occitane; Expands after stockmarket flotation; Analysis; Lush; Rapid international expansion; Analysis; Neal’s Yard Remedies; Profitable again and under new management; Analysis; Poundland; Rapid expansion expected after sale to new owners; Analysis; Space NK; Focusing on direct sales growth; Analysis; The Fragrance Shop; Capturing lucrative perfume market
Analysis
APPENDIX: Definitions
Abbreviations: Methodology; Ask the analyst; Global Retail FreeView; Verdict consulting; Disclaimer
TABLES: Table: Total health & beauty market expenditure 2001-11e; Table: Consumer spending and growth rates in key health & beauty categories 2006-11e; Table: Category shares of the health & beauty market 2006-11e; Table: Health & beauty channels of distribution 2006-11e; Table: Grocers health & beauty sales 2006-11e; Table: Health & beauty specialists health & beauty sales 2006-11e; Table: Department stores health & beauty sales 2006-11e; Table: Mail order health & beauty sales 2006-11e; Table: Pharmacy and specialist health & beauty store numbers 2006-11e; Table: NHS receipts 2006-11e; Table: Top 10 health & beauty retail brands market shares 2006-11e; Table: Retailers share of health & beauty market 2006-11e; Table: Top 13 financials and space 2006-11e; Table: Health & beauty retailers space allocation (grocers) 2011; Table: Health & beauty retailers space allocation (high street) 2011; Table: Health & beauty retailers space allocation (high street - continued) 2011; Table: Big Four grocers development in health & beauty 2011; Table: Loyalty schemes in health & beauty 2010/11; Table: Salon, spa and therapy development in health & beauty 2011; Table: Population by age groups in thousands and change % 2016 and 2021 vs 2011; Table: Asda company overview 2011; Table: Asda retail proposition 2011; Table: Asda UK key operating statistics 2006-11e; Table: Asda store portfolio 2000-10e; Table: Asda health & beauty space allocation 2011; Table: Avon company overview 2011; Table: Avon retail proposition 2011; Table: Avon UK & Eire key operating statistics 2006-11e; Table: The Body Shop company overview 2011; Table: The Body Shop retail proposition 2011; Table: The Body Shop UK key operating statistics 2006-11e; Table: The Body Shop trading record 2001-11e; Table: The Body Shop store portfolio 2001-11e; Table: The Body Shop health & beauty space allocation vs average 2011; Table: Boots company overview 2011; Table: Boots retail proposition 2011; Table: Boots UK key operating statistics 2006-11; Table: Boots UK trading record 2006-11; Table: Boots UK store profile 2006-11; Table: Boots health & beauty space allocation 2011; Table: Debenhams overview 2011; Table: Debenhams retail proposition 2011; Table: Debenhams UK key operating statistics 2006-11e; Table: Debenhams trading record 2001-11e; Table: Debenhams UK store portfolio 2001-11e; Table: Debenhams health & beauty space allocation vs average 2011; Table: House of Fraser overview 2011; Table: House of Fraser retail proposition 2011; Table: House of Fraser UK key operating statistics 2006-11; Table: House of Fraser UK trading record 2001-11; Table: House of Fraser UK store portfolio 2001-11; Table: House of Fraser health & beauty space allocation vs average 2011; Table: Lloydspharmacy company overview 2011; Table: Lloydspharmacy retail proposition 2011; Table: Lloydspharmacy UK key operating statistics 2006-11e; Table: Lloydspharmacy UK trading record 2001-11e; Table: Lloydspharmacy UK store portfolio 2001-11e; Table: Lloydspharmacy health & beauty space allocation vs average 2011; Table: Morrisons company overview 2011; Table: Morrisons retail proposition 2011; Table: Morrisons key operating statistics 2006-11; Table: Morrisons UK trading record 2001-11; Table: Morrisons UK store portfolio 2001-11; Table: Morrisons health & beauty space allocation vs average 2011; Table: Sainsbury’s company overview 2011; Table: Sainsbury's retail proposition 2011; Table: Sainsbury's key operating statistics 2006-11; Table: Sainsbury’s trading record 2001-11; Table: Sainsbury’s UK store portfolio 2001-11e; Table: Sainsbury’s health & beauty space allocation vs average 2011; Table: Superdrug company overview 2011; Table: Superdrug retail proposition 2011; Table: Superdrug key operating statistics 2006-2011e; Table: Superdrug trading record 2001-11e; Table: Superdrug UK store portfolio 2001-11e; Table: Superdrug health & beauty space allocation vs average 2011; Table: Tesco company overview 2011; Table: Tesco retail proposition 2011; Table: Tesco key operating statistics 2006-11e; Table: Tesco trading record 2001-11; Table: Tesco UK store portfolio 2001-11; Table: Tesco health & beauty space allocation vs average 2011; Table: The Perfume Shop company overview 2011; Table: The Perfume Shop retail proposition 2011; Table: The Perfume Shop UK & Eire key operating statistics 2006-11e; Table: The Perfume Shop UK & Eire trading record 2001-11e; Table: The Perfume Shop UK and Eire store portfolio 2001-11e; Table: The Perfume Shop health & beauty space allocation vs average 2011; Table: Wilkinson company overview 2011; Table: Wilkinson retail proposition 2011; Table: Wilkinson key operating statistics 2006-2011; Table: Wilkinson trading record 2001-11; Table: Wilkinson UK store portfolio 2001-11; Table: Wilkinson health & beauty space allocation vs average 2011; Table: 99p Stores key facts 2011; Table: Feelunique.com key facts 2011; Table: L'Occitane key facts 2011; Table: Lush key facts 2011; Table: Neal’s Yard Remedies key facts 2011; Table: Poundland key facts 2011; Table: Space NK key facts 2011; Table: The Fragrance Shop key facts 2011
FIGURES: Figure: Health & beauty expenditure and growth 2006-11e; Figure: Health & beauty expenditure as a percentage of total retail expenditure 2006-11e; Figure: Health & beauty expenditure growth vs y-o-y change in total retail spend % 2006-11e; Figure: Grocers % share of total health & beauty market sales 2006-11e; Figure: Specialists % share of total health & beauty market sales 2006-11e; Figure: Department stores % share of total health & beauty market sales 2006-11e; Figure: Mail order % share of total health & beauty market sales 2006-11e; Figure: Health & beauty market share winners and losers 2011e on 2006; Figure: Health & beauty market share winners and losers 2011e on 2010; Figure: Health & beauty sales growth 2010/11 on 2009/10; Figure: UK health and beauty space growth 2010/11 on 2009/10; Figure: Health & beauty sales densities 2009/10 and 2010/11; Figure: Key issues in health & beauty retailing 2011; Figure: Health & beauty vs total retail sales growth y-o-y change & 2010 and 2011; Figure: Harvey Nichols Beauty Bazaar store 2011; Figure: Aesop pop up store in Merci department store, Paris March 2011; Figure: Leading loyalty drivers for men and women when shopping for personal care 2011 - % of respondents who mentioned; Figure: Harrods gentleman's lounge 2011; Figure: Tesco your Beauty 2011; Figure: Socio-economic/age positioning of health & beauty retailers customer bases 2011; Figure: Population change by age group % 2016 and 2021 vs 2011; Figure: Asda fascia 2011; Figure: Asda UK sales and growth 2006-11e; Figure: Asda UK operating profit to December 2006-09; Figure: Asda UK Health & beauty sales densities 2006-11; Figure: Asda space allocated to health & beauty % 2007-11; Figure: Asda health & beauty space breakdown 2011; Figure: Asda health & beauty market share 2006-11e; Figure: Avon logo 2011; Figure: Avon UK retail sales and growth to December 2006-11e; Figure: Avon UK & Eire retail operating profit to December 2005-09; Figure: Avon health & beauty market share 2006-11e; Figure: The Body Shop fascia 2011; Figure: The Body Shop total UK sales and growth to December 2006-11e; Figure: The Body Shop estimated UK operating profit to December 2004-09; Figure: The Body Shop UK health & beauty sales density to December 2006-11e; Figure: The Body Shop space allocated to health & beauty % 2007-11; Figure: The Body Shop health & beauty space breakdown by category 2011; Figure: The Body Shop health & beauty market share 2006-11e; Figure: Boots fascia 2011; Figure: Boots UK sales and growth to March 2006-11; Figure: Boots UK operating profit to March 2006-11; Figure: Boots UK health & beauty sales density to March 2006-11; Figure: Boots space allocated to health & beauty by format % 2007-11; Figure: Boots large format health & beauty space breakdown 2011; Figure: Boots OOT format health & beauty space breakdown 2011; Figure: Boots small format health & beauty space breakdown 2011; Figure: Boots market shares 2006-11e; Figure: Debenhams fascia 2011; Figure: Debenhams UK sales and growth to August 2006-11e; Figure: Debenhams group operating profit to August 2005-10; Figure: Debenhams UK health & beauty sales density to August 2006-11e; Figure: Debenhams space allocated to health & beauty % 2007-11; Figure: Debenhams health & beauty space breakdown by category 2011; Figure: Debenhams health & beauty market share 2006-11e; Figure: House of Fraser 2011; Figure: House of Fraser gross transactional value and growth to January 2006-11; Figure: House of Fraser group operating profit to January 2006-11; Figure: House of Fraser UK health & beauty sales density to January 2006-11e; Figure: House of Fraser space allocated to health & beauty % 2007-11; Figure: House of Fraser health & beauty space breakdown by category 2011; Figure: House of Fraser health & beauty market share 2006-11e; Figure: Lloydspharmacy fascia 2011; Figure: Lloydspharmacy retail sales and growth to December 2006-11e; Figure: Lloydspharmacy operating profit to December 2004-09; Figure: Lloydspharmacy UK health & beauty sales density to December 2006-11e; Figure: Lloydspharmacy space allocated to health & beauty % 2007-11; Figure: Lloydspharmacy health & beauty space breakdown by category 2011; Figure: Lloydspharmacy health & beauty market share 2006-11e; Figure: Morrisons fascia 2011; Figure: Morrisons retail sales and growth to January 2006-11; Figure: Morrisons operating profit to January 2006-11; Figure: Morrisons UK health & beauty sales density to January 2006-11; Figure: Morrisons space allocated to health & beauty % 2007-11; Figure: Morrisons health & beauty space breakdown by category 2011; Figure: Morrisons health & beauty market share 2006-11e; Figure: Sainsbury’s fascia 2011; Figure: Sainsbury's UK sales and growth to March 2006-11; Figure: Sainsbury's operating profit to March 2006-11; Figure: Sainsbury’s UK health & beauty sales density to December 2006-11e; Figure: Sainsbury’s space allocated to health & beauty % 2007-11; Figure: Sainsbury’s health & beauty space breakdown by category 2011; Figure: Sainsbury’s health & beauty market share 2006-11e; Figure: Superdrug fascia 2011; Figure: Superdrug UK sales and growth to December 2006-2011e; Figure: Superdrug operating profit to December 2005-10; Figure: Superdrug UK health & beauty sales density to December 2006-11e; Figure: Superdrug space allocated to health & beauty % 2007-11; Figure: Superdrug health & beauty space breakdown by category 2011; Figure: Superdrug health & beauty market share 2006-11e; Figure: Tesco health & beauty instore 2011; Figure: Tesco UK sales and growth to February 2006-11; Figure: Tesco operating profit to February 2006-11; Figure: Tesco UK health & beauty sales density to February 2006-11e; Figure: Tesco space allocated to health & beauty % 2007-11; Figure: Tesco health & beauty space breakdown by category 2011; Figure: Tesco health & beauty market share 2006-11e; Figure: The Perfume Shop fascia 2011; Figure: The Perfume Shop UK & Eire sales and growth to December 2006-11e; Figure: The Perfume Shop UK & Eire operating profit to December 2005-10; Figure: The Perfume Shop UK & Eire sales density to December 2006-11e; Figure: The Perfume Shop health & beauty space breakdown by category 2011; Figure: The Perfume Shop health & beauty market share 2006-11e; Figure: Wilkinson fascia 2011; Figure: Wilkinson UK sales and growth to January 2006-11e; Figure: Wilkinson operating profit to January 2006-11; Figure: Wilkinson UK health & beauty sales density to January 2006-11e; Figure: Wilkinson space allocated to health & beauty % 2007-11; Figure: Wilkinson health & beauty space breakdown by category 2011; Figure: Wilkinson health & beauty market share 2006-11e; Figure: 99p Stores fascia 2011; Figure: Feelunique.com webpage 2011; Figure: L'Occitane fascia 2011; Figure: Lush interior 2011; Figure: Neal’s Yard Remedies fascia 2011; Figure: Poundland fascia 2011; Figure: Space NK fascia and interior 2011; Figure: The Fragrance Shop logo 2011

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