Superdrug has reported double-digit sales growth for FY 2022, thanks to the popularity of its own brand ranges and an increased footfall in city centre stores.
The UK health and beauty retailer’s revenue soared 17% to £1.4bn for the full year 2022, up from £1.2bn in 2021.
Sales from Superdrug’s own brand products is a key driver behind the growth, providing the company “with a significant point of difference and a means to showcase its innovation in the health and beauty market,” said a brand statement.
Superdrug’s B.Skincare range performed well throughout 2022, with Melting Cleansing Balm emerging as a hero product in the category.
The product has been so popular that the retailer has now supersized it for 2023.
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Superdrug’s 137-piece affordable make-up range Studio London, which launched in November 2022, also boosted sales last year, with customer favourite U Matte-R Setting Mist Matte selling out twice.
The retailer said its afro-textured hair care range Black Castor & Shea also proved popular.
Own brand sales contributed to a “strong” Christmas period for Superdrug too, with revenue in the category rising by 20% in December 2022.
Taking the initiative to freeze the price of 150 own brand Superdrug products to help customers during the cost of living crisis was also noted as a key factor.
Superdrug's own brand make-up range Studio London
Increased investment in the retailer’s Health & Beautycard customer loyalty programme was also pivotal for Superdrug’s 2022 sales success.
Sales from members “significantly” increased year-on-year and this was supported by the introduction of ‘Members Only’ prices and the launch of promotion Feel Good Fridays – where different discounts are revealed every Friday.
Superdrug had 15.7 million registered Health & Beautycard members by the end of the 2022 financial period.
“Throughout 2022, high food, energy and domestic costs continued to put severe pressure on household incomes,” said Superdrug CEO Peter Macnab.
“At Superdrug, we remained committed to supporting customers through the cost of living crisis, working with [poverty campaigner] Jack Monroe and becoming the first health and beauty retailer to introduce price freezes on essential products.
“Ensuring we brought best-in-class health and beauty at competitive prices, the success of which we see reflected in the growth of our own brand offering and the great take up of Members Only pricing.”
Superdrug.com was also re-platformed as part of the beauty giant’s O+O (offline-plus-online) strategy, “providing seamless accessibility and experience, regardless of how customers choose to start or conclude their shopping,” read the company statement.
The company’s pre-tax profit increased by 71.7% to £77.8m, compared to £45.3m in 2021, with online trading volumes continuing to track ahead of pre-pandemic levels.
The launch of Superdrug Marketplace in November 2022 was cited as another key driver, which lists new products and brands for customers to discover, as well as its store-to-door delivery service expanding into Scotland.
Studio London's U Matte-R Setting Mist Matte has sold out twice since launching in November 2022
However, it is Superdrug’s ongoing commitment to the high street post-Covid-19 that has helped boost 2022 sales.
The retailer invested in 12 new stores last year, resulting in a trading estate of 789 sites in the UK and Ireland at the end of the financial period.
It also landed several product range exclusives to help draw customers in, including Japan’s number-one selling skin care brand Hada Labo and launches by 3ina, Alya and Pacifica.
New cosmetics stands for a “modern shopping environment” were also implemented in-store.
As a result, the company experienced increased footfall in city centre stores and reported good sales during the Christmas period.
“Christmas 2022 was a particularly positive trading period for Superdrug and we have certainly carried this momentum into 2023, with customer footfall continuing to increase and all of our categories performing well,” added Macnab.
“Particularly cosmetics, which had a turbulent few years throughout the pandemic.”
A further 25 bricks-and-mortar stores are due to open this year.
Superdug recently cut the price of its own-brand sun care range by 20% as part of its promise to help customers during the cost of living crisis.
The beauty giant reduced the price of 41 Solait products, recognising the category as “a healthcare essential and not a beauty product”.
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