Heatwave gives Superdrug sales a boost, but profits dive

By

Barbara Santamaria

Published
Jun 17, 2019

Sales of sunshine-ready products helped British beauty retailer Superdrug post a 3.3% increase in sales in the 52 weeks to December 29, but the company saw annual profits dip amid “challenging times” for the high street.

Superdrug, owned by global health and beauty retailer AS Watson, made £1.3 billion in revenue last year, boosted by the opening of 23 new stores and the launch of new product categories.

The company said sunshine-ready products performed particularly well during last year’s heatwave, with sales of bronzing gear up 29% and the Soilait suncare range among its best-selling products.

Superdrug has also taken advantage of the growing vegan movement by introducing vegan beauty products such as plant-based face masks and charcoal toothpaste, and promoting the range in its “little vegan pop-up shop”. Sales of vegan own-branded range grew by 25% last year.

And the retailer introduced a controversial Botox and dermal filler service at its London flagship store, which sent sales of health services soaring by 84%.

But this was not enough to offset a decline in profits, down to £88.2 million from £92.9 million a year earlier.  

Peter Macnab, chief executive of AS Watson Health & Beauty UK, commented: "We are pleased with the company's performance in challenging times, and I'd like to thank every team member for their hard work and contribution to these results.

“Our strategy for 2019 is to ensure we are offering all our customers everyday accessible health and beauty, giving them the beauty and health services they need in a vibrant and friendly store environment."