Report Summary

Period covered: 28 July – 24 August 2024

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 and Beauty sales

Health & Beauty sales rose by xx% YoY in September, compared to xx% growth in September 2023, according to the Retail Economics Retail Sales Index (value, non-seasonally adjusted).

The Health & Beauty sector remains the fastest-growing in UK retail and is at its strongest rate of growth of the year.

Sales drivers

Several key factors influenced this performance:

Weather impact: September saw fluctuating temperatures, with a warm start followed by cooler spells. It was drier and duller than a year ago and the coolest September since 2018. Trains and motorways were disrupted by heavy downpours later in the month, and shopping behaviour was influenced as consumers opted to spend more time indoors.

Back to school: Consumers got back into day-to-day routines following summer holidays, stocking up on routine essentials and back-to-school and university necessities.

Consumer confidence drops: Consumer confidence fell 20 points in September (GfK) as people worried about the impact of the upcoming Budget at the end of October.

Peak preparation: Health and beauty retailers expanded offerings as the peak Q4 period got underway and ahead of the holiday gifting period. Retailers are gearing up for Black Friday in November as the pivotal shopping event approaches.

Beauty continues to buoy retail

Health & Beauty continued to outperform in September, with consumers gravitating towards smaller, feel-good purchases as household finances gradually improve post-cost-of-living crisis.

Weakening confidence 

Health and beauty retailers have so far performed well in a constrained spending environment, and this month has been no different.

Big ticket items bore the brunt of the downturn in confidence, with more shoppers expecting a weakening of their personal financial situation, according to our latest Shopper Sentiment Survey (fig 1).

Black Friday beckons

Health & Beauty retailers have already started releasing holiday health and beauty ranges, helping to accelerate the sector’s growth to its highest level since mid-2023.

High street names including Marks & Spencer, Next and John Lewis are bolstering their offerings ahead of the peak period, using strategies including online product recommendations and gifting bundles to get holiday sales off to a strong start.

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Consumer confidence declined