Holland & Barrett is ramping up its food proposition, ahead of another major expansion of its food and drink category.
Having relaunched its entire food and drink category in September 2023, the retailer is now investing in upping its in-house food development capabilities ahead of further own-label launches.
As part of the work, in May H&B expanded its London office in order to add a new innovation kitchen – dubbed the Innovation Lab – dedicated to developing own-label NPD.
H&B also has the long-term plan of investing in more branded innovation, and is understood to have been discussing proposals to launch its own in-house challenger brand programme with some of its supply base. The Grocer understands the proposals are yet to progress beyond the initial planning stage.
“It’s early days, and we continue to innovate the food range full stop,” Nick Gerrard, H&B property and format director, told The Grocer, confirming the opening of the new innovation hub.
Despite building its reputation as a health and wellness retailer, Holland & Barrett began life in 1870 as a greengrocer, and the business views speciality food and drink as a major point of difference and opportunity to build market share.
The first wave of the relaunch kicked off in September 2023 with the launch of 700 new food and drink lines across its entire store estate. It saw the return of chillers to H&B stores the first time since before the Covid pandemic.
At the time, Lisa Tookey, H&B group growth and food director, told The Grocer H&B would focus on “filling gaps” in the market with products that complemented its existing health, wellness and supplements offer, rather than directly compete with supermarkets. It included store cupboard staples like pasta sauces, baked beans and bread tailored to specific allergy needs.
The focus on food has come alongside a major store redevelopment plan over the past year, as part of owner LetterOne’s turnaround strategy. H&B has added 35 new shops, and refurbished 280 more in 2024 as part of the turnaround plan. It has set the goal of opening nearly one store a week in 2025.
The investment has dragged on its bottom line, but helped draw customers back to stores, with revenues growing by £81m in the year to 30 September. Sales at its UK stores were up 11% to £565m, which was, the retailer said, driven in part by its “new product offering, particularly food”.
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