The outbreak of COVID-19 that started in 2020 and continued in 2021 had a mixed impact on health and beauty specialist retailers resulting in overall current value growth remaining positive but flat. Due to the health crisis, chemists/pharmacies and drugstores/parapharmacies both registered strong growth in 2020 but such momentum was unsustainable in 2021 as fewer consumers were stocking up on a range of consumer health products as they learnt to live in a pandemic environment.
Retail conglomerate Wesfarmers Ltd has added Priceline and Soul Pattinson Chemist to its already impressive list of retail brands including Bunnings, Kmart, Target, and Officeworks. While Australian Pharmaceutical Industries Ltd’s earnings have been damaged by COVID-19’s rolling closures, this acquisition is likely to bring benefits to Priceline and Soul Pattinson Chemist as Wesfarmers is predicted to follow up with other acquisitions to strengthen its position in health and beauty specialists and better compete with other retailers within this space such as leader Chemist Warehouse.
In this extremely competitive beauty landscape, collaborations and partnerships are key for both beauty brands and retailers to claim their positions and look to scale up their e-commerce capabilities. Consumers are notoriously sticky with the brands they trust and use, and therefore, working with well-known and rated brands will provide the exclusive opportunity to increase share.
While beauty specialist retailers and optical goods stores both suffered losses in current value terms in 2020, these retailers bounced back to positive retail value growth in 2021. Beauty specialist retailers were still forced to close during the various state-wide lockdowns in 2021, leading to a less dynamic performance compared to optical goods stores.
The beauty industry is a dynamic area, constantly fluctuating with changing fashions and trends. As such, it is one where vloggers and influencers can create mini peaks in demand.
There have been calls by the Australian Medical Association (AMA) to push for an overhaul of the rules governing the way Australians buy medicine, allowing the sales of medications via vending machines in GP clinics, which will help to open up competition from supermarkets and online retailers. At the end of the review period, there were location rules that banned new chemists from opening within 1.
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Understand the latest market trends and future growth opportunities for the Health and Beauty Specialist Retailers industry in Australia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
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This is the aggregation of chemists/pharmacies, drugstores/parapharmacies, beauty specialist retailers, optical goods stores and other healthcare specialist retailers.See All of Our Definitions
This report originates from Passport, our Health and Beauty Specialist Retailers research and analysis database.
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