Superdrug hails strong full year financials as results shine

Health and beauty retailer, Superdrug, has reported strong financial results for the year 2023, with sales increasing by 11.8 percent to £1,528 million (vs £1,367 million in 2022). Market share also grew for the third consecutive year rising to 10.6 percent^[1] , versus the 8.9 percent market share held in 2020^[2] . The positive figures have been driven by strong retail store performance, increased sales volume and continued Own Brand growth.

The results also show that pre-tax profit increased by 43 percent to £111.6 million – over last period’s £77.8 million – as more shoppers continue to discover high quality, trending health and beauty products at an affordable price.

Superdrug’s ongoing investment into best-in-class stores in prime retail destinations contributed to robust sales during the financial period, with 14 new stores opening in key locations such as The Trafford Centre in Manchester, Brent Cross Shopping Centre and Braehead – Superdrug’s largest store in Scotland. The larger stores include spacious aisles where Superdrug customers can enjoy browsing the latest trending cosmetics and skincare products, Beauty Studios offering beauty services, premium fragrance counters and health services.

In addition to the new store locations, Superdrug has enhanced customers’ experience by modernising and refitting 45 existing stores over the course of the year. Updates included new shop fronts, upgraded store Wi-Fi, new floor layouts, upgraded fascia and internal signage, improved flooring and ceiling tiles made from bio-soluble mineral wool, clay and starch and energy efficient LED lighting.

Volume sales for total revenue increased by 4.2 percent year-on-year owing to Superdrug’s strategy to list up to the minute ‘Made by’ Superdrug products, providing the company with a significant point of difference and a means to showcase its innovation in the health and beauty market.

Superdrug’s Optimum Collagen Night Cream flew off the shelves in the first half of the year after amazing reviews by beauty fans and twice sold out due to demand. The retailer’s own brand cosmetic range, Studio London, also continued to grow, and in 2023 a campaign called ‘Studio Stars’ was launched with the aim to discover 10 makeup artists (MUAs) and give them industry leading experience.

‘Exclusive to’ launches from brands including Biore SPF, Nyx X Barbie and fragrance by Billie Eilish made up a high proportion of sales, as customers snapped up the latest trending beauty products.

Superdrug’s CEO Peter Macnab commented: “Our vision is to be the UK’s leading accessible health & beauty retailer with high quality, affordable products at the heart of everything we do. Our financial results demonstrate the trust that customers are continually putting in us and I would like to thank our colleagues for their ongoing hard work and commitment and for living and breathing our vision every day.

Over the last year, we’ve continued to invest into our store estate to provide customers with best-in class shopping experiences. The strong store sales growth gives us the confidence that our strategy is working, and new stores are being welcomed by customers and the local community.

As inflation continued to put pressure on households, at Superdrug we’ve invested heavily to keep our prices competitive and help families keep costs down. In May 2023, we reduced prices by 20 percent, 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. 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.”

Superdrug Healthcare continues to ensure communities have access to vital medicines, prescriptions, and professional advice, with 183 stores now containing a Pharmacy and over 85 Nurse Clinics, with an amazing Trustpilot score of 5 out of 5. Online Doctor also celebrated its 10^th year, with healthcare now offering over 75 services including women’s health, travel health and healthy weight management.

Superdrug’s Health & Beautycard customer loyalty programme remains pivotal to its engagement with customers, with total membership reaching 18.1 million at financial period end thanks to the launch of VIP Rewards, which sees Health & Beautycard members being rewarded for spend on top of Superdrug’s already great everyday offers. Over 60 percent of total sales are made through members, which highlights increasing levels of brand loyalty and competitive price.

Investment into colleagues is a key part to the vision and strategy and in August 2023, Superdrug launched ‘Rise Up to Level Up’, a campaign to drive apprenticeship recruitment and reinforce the British Retail Consortium’s call for change to the Apprenticeship Levy, which asks for more flexibility in the scheme.

Superdrug continues to enhance its O+O (offline plus online) offering, with Marketplace expanding product offerings across categories, adapting to market trends and enhancing the customer experience. Over 22,000 products are now listed on the Marketplace and online business participation continues to increase.

^[1] Circana data 2023

^[2] Circana data 2023