Health and Beauty Specialist Retailers in the US

PROSPECTS

Beauty specialist retailers drives category growth

Health and beauty specialist retailers continued to exhibit stable current value growth, in addition to an increase in the total number of outlets for beauty specialist retailers, which performed especially well. It managed to outperform the remaining categories of health and beauty specialist retailers mainly due to a successful omnichannel business strategy.

Consumers expect faster delivery times

Despite the growth in other product categories, prescription drugs remain at the core of drugstore services and products. As sales migrate online and to other channels, affected by recent pharmaceutical acquisitions from Amazon and retail giant Target, drugstore operators are revamping their delivery programmes to compete with shorter lead times.

Drugstores shifting focus to beauty aisles

Consumers are increasingly purchasing beauty products from drugstores, leading to a shift in selling space to favour skin care, hair care and cosmetics. The number of outlets and selling space are expected to continue to grow over the forecast period, as drugstores add new beauty brands and in-store customer touchpoints.

COMPETITIVE LANDSCAPE

Blurred lines ahead

Consumers visit drugstores/parapharmacies in the US searching for products that exceed the traditional channel offering. In early December 2018, Kroger announced a collaboration, whereby it would start selling groceries inside 13 Walgreens outlets across the country.

From aisle to pop-up salon

CVS has ventured into a partnership with NYC professional cosmetic service pioneer Glamsquad. As part of its strategy to expand its offerings and gain relevance amongst a younger demographic, CVS has added a cosmetic-driven shop-in-shop format called “Beauty IRL” to a select group of outlets.

Sephora’s loyal consumer base is key to success

Beauty specialist retailer Sephora has fostered a growing consumer following over the years, leveraged on a strong focus on in-store experiences and a successful mobile application, which includes a social media-like platform where consumers share product reviews and tips on Sephora’s products and services. In October 2018, the retailer hosted Sephoria, an immersive beauty event where consumers could live and breathe the brand through curated product testing experiences and workshops with key opinion leaders.

Files are delivered directly into your account within a few minutes of purchase.