Superdrug’s sales surged 11.8% to £1.5bn during 2023, as investment in its own-label brands and stores helped drive footfall across its estate.
The health & beauty retailer opened 14 new stores and refitted 45 existing branches as part of an ongoing expansion plan during the period. It came alongside an expansion of its Superdrug Heath & Beauty card loyalty scheme across its own-label lines, and extension of its e-commerce marketplace.
Volumes grew by 4.2%, helping the retailer achieve what it said was its third consecutive year of market growth. Overall pre-tax profits increased 43% to £111.6m.
“Our vision is to be the UK’s leading accessible health & beauty retailer with high-quality, affordable products at the heart of everything we do,” said Superdrug CEO Peter Macnab.
“Our financial results demonstrate the trust that customers are continually putting in us and I would like to thank our colleagues for their ongoing hard work and commitment and for living and breathing our vision every day.”
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The expansion of its own-label lines, including its Made By Superdrug range, had contributed significantly to the volumes increase, the retailer said.
It had also “invested heavily” in keeping its prices competitive during the year, Macnab said. The investment included a 20% price cut in May 2023. It also froze the price of its mobile tariff.
“Over the last year, we’ve continued to invest into our store estate to provide customers with best-in-class shopping experiences. The strong store sales growth gives us the confidence that our strategy is working, and new stores are being welcomed by customers and the local community,” Macnab added.
As part of the store modernisation scheme, Superdrug has enhanced shop fronts, upgraded Wi-Fi, widened aisles and improved internal signage.
The results come as the retailer celebrates it’s 60th anniversary. Last week it opened its largest store site to date in London’s Westfield Shopping Centre, as part of plans to open 25 more by the end of 2024.
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