Record-breaking beauty success propels Boots‘ ongoing market share expansion.
In the three months leading up to February 28, 2023, Boots maintained its strong performance, with brisk holiday sales and a record-breaking showing in the cosmetics category fueling a 16% increase in retail sales.
With gains in all categories, including beauty, which was the quarter’s standout performer, the company announced its eighth consecutive quarter of market share growth. As more people chose to shop at Boots, so did traffic, basket size, and the amount of Advantage Card users. Retail revenue increased 17.4% over the course of the five weeks leading up to December 31 during the Christmas season, outpacing the market.
A milestone was set in the beauty category in January, and the biggest sales week ever for premium beauty occurred in December. In December, the “expert skincare” category, which featured brands like No7, La Roche-Posay, CeraVe, and Eucerin, saw three weeks in a row of high sales. The 170th store to undergo a beauty makeover opened at Westfield White City at the close of the period, as part of Boots’ ongoing beauty transformation strategy. In Q2, 19 new beauty halls were opened. Boots now carries more than 500 well-known and niche beauty products, and it is the only retailer of No7, the top skincare brand in the UK.
As part of its ongoing commitment to making the necessities of living affordable, Boots announced its largest ever savings during the third quarter, expanding its value offering even further. This included expanding the Price Advantage program, which has so far saved customers £30 million and now offers discounts on more than 800 goods each month, as well as adding 60 new products to the Boots Everyday label.
Customers are still visiting stores frequently (footfall increased by 16% in the quarter), and they are also making larger purchases (number of products sold increased compared to the previous year). Boots.com maintained its strong performance at the same period. Over 15% of retail sales now come from digital channels, which saw a 17% rise in sales. Over the time year over year, The Boots App saw growth of 65%, and it now accounts for over 25% of all digital sales.
“More people are choosing to shop with Boots, largely due to our focus on value and our market-leading beauty offer,” said Sebastian James, managing director of Boots UK & ROI. This is demonstrated by our strong retail sales results and ongoing market share expansion, especially during the holiday season. Despite the difficult industry background, we also increased pharmacy sales. I want to express my gratitude to all of our wonderful team members for their dedication to serving our customers and ongoing hard work.
Unless otherwise indicated, comparisons are made against the same quarter last year.