How Britain Shops for Health & Beauty | Verdict Consumer Report

How Britain Shops for Health & Beauty | Verdict Consumer Report

Summary

21.6% of health & beauty shoppers are aged 65+; however, health & beauty penetration among 65+s is the second lowest after the 16–24 age group, at 65.5% compared to 35–44s at 70.4% – the highest of all age groups. Retailers must drive more regular spend from mature shoppers, with 55+s conducting a health & beauty shop once every few months, compared to 25–34s and 35–44s who shop more often.

Key Findings

  • Use retailer ratings across eight key metrics to benchmark the performance of retailers in the health & beauty market
  • Identify what factors health & beauty shoppers find important, and how well retailers satisfy the expectations of their shoppers
  • Understand what channels shoppers are using to make purchases and see how this varies across regions and demographics to improve customer targeting
Summary

25.2% of health & beauty shoppers feel better off in 2015 compared to last year, and as a result 26.8% feel they are spending more. This has enabled health & beauty retailers to premiumise their offers, as willingness to spend is increasing and shoppers are becoming more easily encouraged to buy into newness of non-essentials more regularly.

Only 47.3% of Superdrug’s visitors are frequent shoppers, causing its shopping around score to be high compared to rivals Tesco, Boots, and Asda. Superdrug needs to invest in new creative products to stand out among its value and midmarket competitors and drive additional spend from experimental shoppers.

52.4% of shoppers visit Boots for health & beauty products, a 24.1 percentage point lead ahead of the second most visited retailer, Tesco. However, when looking at frequent shoppers, Tesco outshines, with 63.5% of consumers shopping frequently with the grocer compared to 60.7% at Boots.

Reasons To Buy
  • Which health & beauty retailers have the highest share of visitors and purchasers? Which retailer has the highest conversion rate in health & beauty?
  • How many other stores do your shoppers use for health & beauty?
  • How often do health & beauty shoppers shop for health & beauty?
  • How much better off do health & beauty shoppers feel in comparison to last year? And how much are they spending compared to last year?


  • Overview
  • Main Conclusions
    • Health & beauty shoppers are feeling better off financially, aiding premiumisation in the sector
    • Potential for health & beauty players to increase frequency usage among males
    • 65+s are an underserved but lucrative consumer segment
    • 32.4% of shoppers buy online for health & beauty and have goods delivered
    • Boots must drive visitor frequency through investing in convenience
    • Superdrug must improve its own label offer to encourage shopper loyalty
    • While Aldi and Poundland win on price, low quality scores result in customers shopping around
  • Sector Analysis
    • Sector summary
      • Over 25% of shoppers feel better off, leading to almost 27% feeling they spend more
    • Shopping frequency
      • Retailers must drive shopping trip frequency among males and 65+s
        • Table Frequency of health & beauty shopping trips by region (%), 2015
        • Table Frequency of health & beauty shopping trips by demographics (%), 2015
    • Channel spend
      • Immediate needs sector leads to wide gap between store and online purchasing
        • Table Channels used in the last year by health & beauty shoppers by region (%), 2015
        • Table Channels used in the last year by health & beauty shoppers by demographics (%),2015
    • Penetration of shoppers
      • While Boots draws in more visitors, Tesco outshines in frequency shopper numbers
        • Table Top 10 retailers' share of regional health & beauty shoppers (%), 2015
    • Conversion
      • Body Shop has the lowest conversion, with low scores in price, convenience instore and value
        • Table Average conversion of health & beauty retailers by region (%), 2015
    • Shopping around
      • Boots' Advantage Card and wide product choice result in its customers shopping around the least
  • Retailer Ratings
    • Importance of shopping drivers
      • Value for money ranks most important
    • Retailer ratings
      • Body Shop ranks highest for customer service so must better promote its services to shoppers
        • Table Health & beauty retailer ratings for shopping drivers (rated out of 10), 2015
        • Table Health & beauty retailer ratings versus driver importance, 2015
  • Methodology
    • Table Sample sizes by sector, 2015
    • Access to additional data
  • Appendix
    • About Verdict Retail
    • Disclaimer

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