Report Summary

Period covered: 31 May – 04 July 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 were the strongest-performing retail sector in June, with sales increasing by xx% year-on-year, comfortably ahead of the xx% growth recorded in the same month last year.

The sector entered the month with several favourable trading conditions. England experienced its warmest June on record, encouraging demand for seasonal products, while easing inflation helped reduce pressure on household budgets.

Unlike many discretionary sectors, health and beauty also benefited from purchases that consumers considered essential during prolonged periods of hot weather. Products linked to skincare, personal care and summer wellbeing became everyday necessities rather than optional purchases, allowing the sector to outperform the wider retail market.

The result continues a trend seen throughout the first half of 2026, with health and beauty proving one of the most resilient areas of retail despite continued pressure on discretionary spending.

Key trading themes and drivers

June heatwave: June's exceptional weather was the defining influence on trading. Demand increased as consumers adapted to prolonged periods of sunshine and higher temperatures, supporting sales across products associated with summer skincare, personal care and wellbeing.

Social occasions: The season also brought a greater number of social occasions. Outdoor dining, holidays, festivals and sporting events encouraged spending on beauty and grooming products as households prepared for time away from home and social gatherings.

Easing Inflation: Easing inflation also provided a more supportive backdrop than earlier in the year. While consumers continued to assess larger discretionary purchases carefully, everyday health and beauty products remained a regular part of weekly spending, allowing the sector to benefit from consistent purchasing patterns.

Consumer behaviour and channel trends

Health and beauty continued to benefit from the frequency with which consumers purchase products across the category.

Many items are replenished regularly, making demand less dependent on confidence than sectors built around occasional high value purchases.

Digital channels also remained important, with online reporting another month of strong growth as consumers increasingly chose to shop from home while footfall weakened across many high streets.

Macroeconomic backdrop

The wider economic picture became more favourable during June. Consumer price inflation eased to xx%, fuel prices declined and grocery inflation continued to slow, providing households with some relief after several years of elevated living costs

The Bank of England kept Bank Rate at xx, leaving borrowing costs elevated for households with mortgages, credit balances or plans to finance larger purchases.

Housing activity also remained subdued, with mortgage approvals falling to their lowest level since December 2023.

The increase in the energy price cap from 1st July will place renewed pressure on some household finances, with higher utility bills narrowing the spending headroom created by lower inflation and cheaper fuel.

Outlook

Seasonal demand should remain supportive through July as warm weather, holidays and outdoor events continue to drive purchases linked to skincare, personal care and everyday wellbeing.

The increase in the energy price cap from July will place fresh pressure on household budgets, while softer labour market conditions and suggest many consumers will continue to weigh discretionary purchases carefully.

Health and beauty has consistently demonstrated an ability to perform well when spending elsewhere comes under pressure, supported by frequent purchasing cycles and products that remain closely connected to everyday routines.

The performance in June suggests consumers remain willing to spend where products have an immediate purpose, and that characteristic is likely to provide an important source of resilience over the coming months.

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Consumer confidence stable