Report Summary

Period covered 29 September – 26 October 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 October, 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 sector in October, across both food and non-food.

Sales drivers

Several key factors influenced this performance:

• Weather impact: October saw mild weather that was average for the time of year. Temperatures were slightly above the 30-year average, while rainfall and sunshine were both just below average. The first named storm of the year, Storm Ashley, fell in the middle of the month, impacting footfall and bringing heavy rain and winds to Northern Ireland, Scotland, and northern parts of England and Wales.
• Halloween: The Halloween holiday at the end of the month saw some consumers dressing up and heading to seasonal parties, boosting beauty sales.
• Consumer confidence drops: Consumer confidence fell to -xx points in October (GfK) as speculation grew over the impact of the upcoming Budget at the end of the month.
• Peak preparation: Health and beauty retailers launched their Christmas offerings as the peak Q4 period continued and Black Friday approached. Beauty advent calendars were off to a particularly strong start as consumers geared up for the festive season.

Black Friday beckons

• Health & Beauty is one of the hardest-hit sectors by a high volume and frequency of returns, new Retail Economics research has found.
• The sector tends to suffer from gifting issues, meaning it has one of the highest return rates in retail
• In total, Retail Economics forecasts that returns will tip £xx across the retail sector in 2024. 
• Health & Beauty is forecast to account for £xxbn of this, with a return rate of xx% - the third highest return rate, behind clothing and footwear.
• The cost of returns varies widely depending on product category, seasonality, and return speed, but is estimated to cost between £xx and £xx. This includes postage, packaging, depreciation, labour, and missed sales opportunities.

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Projected Real household disposable income per person expected to decline in 2024-25