The number of beauty specialist retailers in South Africa continued to decline in 2021, as consumers favoured one-stop stores such as drugstores/parapharmacies from which to purchase all health and beauty-related requirements. In response to the trend, Retailability Group, which entered the channel by acquiring beauty specialist banner Edgars Beauty in 2021, reduced the number of the latter’s outlets while expanding the selling space allocated to beauty products in Edgars department stores.
The Competition Tribunal approved a deal that will allow Clicks Group to take over 25 Pick ‘n’ Pay pharmacies, which will lead to the group becoming the largest pharmacy in South Africa in terms of outlets. The deal was in line with the long-term expansion strategy of Clicks, with the company reporting up to 80 acquisitions over the review period.
Technology enabled global brands such as Sephora and Cult Beauty to tap into the South African market towards the end of the review period. However, since the pandemic, local health and beauty specialist retailers have been fast-tracking their digital solutions in response to the increased demand for convenience.
Drugstores/parapharmacies will continue to dominate value sales of the overall channel, supported by extended footprint, brand loyalty and diversified offers. Players will also leverage private label lines to expand their value offers, a differentiation tool that will continue to give them a competitive edge compared to independent pharmacies.
Beauty specialist retailers will benefit from improving economic conditions, with the rising mid-income group across the predominantly young South African population supporting growth. However, the channel will also face intensified competition from models such as direct selling that utilise innovation and aggressive salesforce recruitment strategies to gain traction.
With convenience and consumer services likely to reshape the health and beauty specialist model during the forecast period, telemedicine and tele-pharmacies will grow to become the new standard. The trend will allow the emergence of virtual beauty and healthcare apps aiming to provide consumers with a seamless experience.
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Understand the latest market trends and future growth opportunities for the Health and Beauty Specialist Retailers industry in South Africa with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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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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