UK Health & Beauty Sector Report summary
August 2021
Period covered: Period covered: 04 - 31 July 2021
Note: This report summary is one or two months behind the current month as standard reporting practice. The content is indicative only and incomplete with certain data undisclosed. Subscribe to access this data or take out a free 30 day subscription trial now.
Health & Beauty sales rose 00% YoY in July, but remain 5.4% below the equivalent pre-pandemic period in 2019, according to Retail Economics.
Total retail sales rose by 00% YoY, and 7.9% versus July 2019, according to the Retail Economics Retail Sales Index (value, non-seasonally adjusted).
Spending on ‘social’ components of the consumer spending basket (e.g. hotels, restaurants, pubs and air travel) rose by 59.5% YoY in July (Bank of England).
As such, there was a surprise month-on-month fall of 1.5% in retail sales between June and July (ONS), uncharacteristic for this time of year. Indeed, it was the only month-on-month fall between June and July in the last decade.
The end to mandatory mask wearing has increased demand for lipstick and makeup as shoppers enjoy spending money on their appearance once again.
The No7 Beauty company saw a 61% increase in the volume of lipstick sales in the second quarter this year. Bold, showstopping colours are reportedly in favour.
Compared to other retail sectors, Health & Beauty has one of the lowest online penetration rates. Even with the pandemic-induced shift to online, Retail Economics forecasts online to account for just 00% of total Health & Beauty sales in 2021.
Sephora is one of the most innovative retailers in the global beauty industry. Their entrance into the UK market will push established players to optimise their business models, particularly as the opening of Sephora stores in the UK is expected to follow.
Retail Economics forecasts Health & Beauty sales to rebound over 2021, growing by 00% YoY to reach just under £21.1bn, returning close to 2019’s pre-pandemic levels.
Retail Economics forecasts Online Health & Beauty sales to rise by 00% YoY in 2021, maintaining positive momentum following a surge in online sales growth over 2020.
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Confidence back to pre-pandemic levels but still fragile
Source: GfK
