Report Summary

Period covered 05 July – 01 August 2026

3 minute read

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. Become a member to access this data or take out a free 30 day membership trial now.

Health & Beauty - Retail Economics Sales Index

Health and beauty was again the strongest-performing retail sector in July, with sales increasing by xx% year-on-year, well ahead of the xx% growth recorded in the same month last year.

Growth eased only slightly from xx in June, leaving the category largely untouched by the wider slowdown in retail spending during the month.

The consistency of that performance is particularly notable, with health and beauty having recorded growth of at least xx% in every month of 2026 so far, including April when total retail sales fell by xx.

July continued that run at a time when households were becoming less willing to commit to larger discretionary purchases, showing that beauty and personal care retained a firm place in consumer spending.

Key trading themes and drivers

Another month of exceptional temperatures provided a favourable setting for parts of the category, with July becoming the UK's second warmest July on record and the sunniest on record.

After similarly hot conditions in May and June, sun protection and products associated with spending more time outdoors remained relevant well beyond the usual periods of concentrated summer demand. The longevity of the warm weather gave seasonal ranges an extended selling period rather than confining demand to a short burst at the beginning of summer.

Health and beauty also continued to benefit from the relatively accessible cost of many purchases.

A new fragrance, skincare product or cosmetic purchase can provide an element of indulgence without requiring the financial commitment attached to many other non-food categories.

The breadth of the sector also gives it several sources of demand at the same time. Personal care and toiletries form part of regular household expenditure, skincare and sun care respond to practical needs, while cosmetics, fragrance and beauty products carry a stronger discretionary element.

Consumer behaviour

Beauty purchasing has become increasingly fluid between stores and digital channels, with consumers often discovering products online before using stores to test colours, fragrances and formulations or obtain a product immediately.

Social media, product reviews and online comparison have expanded the amount of information available before purchase, but physical retail retains a role that is difficult to replicate fully in categories where consumers want to experience a product before buying.

July's stronger physical retail activity provided another opportunity for beauty purchases to form part of wider shopping and leisure trips. High streets, shopping centres and coastal destinations all became busier during the month, with consumers spending more time away from home during the school holidays and exceptional weather.

Outlook

After seven consecutive months of growth above xx, health and beauty enters the latter part of the summer from a much firmer position than most discretionary categories.

As temperatures eventually fall, the mix of purchases will change and some of the exceptional support for sun care and other summer products will naturally recede.

The category has several other reasons for consumers to keep spending, however, as regular replenishment continues throughout the year and the approach to autumn brings changes in skincare routines along with new beauty ranges and launches.

The more significant test will come from household finances, with higher energy bills now absorbing more income and the labour market has weakened. July’s performance leaves little evidence that consumers are preparing to give up these purchases, despite these cost pressures.

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