Health and Beauty Specialist Retailers in the US

PROSPECTS

Drugstores increasing their focus on grocery sales

Drugstores, with their large number of outlets, are looking to fill a gap in grocery retailing by focusing more on grocery sales. Much like convenience stores, drugstores are retail outlets that consumers might visit between their weekly or biweekly grocery shopping outings to purchase a couple of items when they are needed.

Health and beauty specialists use AI to enhance customer experience

Health and beauty specialist retailers are increasingly making use of AI to improve the in-store experience for their customers. Ulta is investing in technology to improve the shopper’s experience and allow for greater personalisation by capitalising on data from its loyalty programme.

Beauty specialists see personalisation as key to success

In February 2020 Sephora announced plans to open 100 new locations in North America. This strategy includes smaller-format outlets allowing for more stand-alone, street-front locations.

COMPETITIVE LANDSCAPE

Walgreen reconfigures its bricks-and-mortar stores in order to cut costs

Leading player Walgreen is carrying out changes to its store network in order to optimise sales and profits. This will involve closing stores, with the company announcing plans in August 2019 to shut 200 US locations as part of its cost-saving plan.

Ulta’s looks to exclusive launches and in-store experience to compete with Sephora

While Ulta will continue to recognise the importance of its digital operations, it will also continue to try and optimise the in-store experience for its customers. Ulta feels that physical stores help build brand loyalty and an emotional connection, which can be further strengthened with each visit.

CVS sees continued focus on health and wellness as key to success

Since it stopped selling tobacco products in 2014, CVS has been increasing its focus on health and wellness. It has opened more than 1,100 in-store clinics under its MinuteClinic banner and is devoting more floorspace to healthcare products.

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