UK Health & Beauty Retailers 2008

SUMMARY

Abstract

Overview

Introduction

Verdict Research: We forecast that health & beauty will be the fastest growing retail sector over 2008, but the market will still be difficult with inflationary pressures and demanding consumers. This report analyses the key market issues, growth prospects and major retailers.

Scope

• Comprehensive market coverage - five years' data on health & beauty expenditure broken down into 11 product categories (2003-2008).
• Extensive profiles of 13 of the major health & beauty retailers including analysis of their retail propositions, store portfolios and strategy.
• Key operating statistics for each retailer - market shares, sales, store numbers, operating profit margin, sales per sq ft and space allocation.
• Sales through distribution channels (including specialists, grocers, department stores and mail order) and market shares.

Report Highlights

We forecast that health & beauty will be the fastest growing retail sector over 2008. Despite the external retail environment, we expect growth in the health & beauty market to be higher than 2007, largely due to price inflation, greater uptake of men's health & beauty products and continued trading up in categories such as skincare.

A set of smaller, yet authoritative retailers with a clear niche focus has developed and they threaten to steal share from larger players. The likes of Space NK and Molton Brown have been expanding their presence, building sizeable operations and threatening more established rivals.

Consumer interest in healthy, natural living is increasingly manifesting itself in the health & beauty market. This is affecting product development and driving growth for niche retailers with a relevant proposition - such as Lush. However, widespread availability makes it challenging for retailers to differentiate on this point alone.

Reasons to Purchase

• Understand the key market drivers. Use analysis of the major trends to gain insight into the challenges and opportunities going forward.
• Discover which retailers are set to outperform. In-depth analysis provides insight into the reasons for retailers' current and expected performances.
• Gain insight into the performance of key categories. Historical figures and 2008 category forecasts will help you identify growth opportunities.

TABLE OF CONTENTS

Table of Contents

• CHAPTER 1 EXECUTIVE SUMMARY
  • Key Findings
  • Main Conclusions
• CHAPTER 2 THE MARKET
  • Definition
  • Consumer Expenditure
  • Product Mix
  • Channels of Distribution
  • Grocers
  • Health & Beauty Specialists
  • Department Stores
  • Mail Order
  • Store Numbers
  • Specialists Sales
• CHAPTER 3 COMPANY DATA ANALYSIS
  • Top 10 Market Shares
  • Market Shares & Sales
  • Key Operating Statistics
  • Advertising
  • Space
• CHAPTER 4 OUTLOOK
  • Grocers Continue to Plunder Share From Specialists
  • Retailers Tap into Natural, Ethical and Health Trends
  • Pharmacy Deregulation Strengthens Competition
  • Inflation Squeezes Margins
  • Mens Toiletries Build Share
  • Innovative Niche Players Threaten Larger Players
  • Niche Retailers - Key Facts
• CHAPTER 5 ALLIANCE BOOTS
  • Company Overview
  • Market Shares
  • Trading Record
    • Year to March 2007
    • Year to March 2008
  • Store Portfolio
  • Space Allocation
  • Retail Propositions
  • Management, Marketing & Operations
  • Outlook
• CHAPTER 6 AVON UK
  • Company Overview
  • Market Share
  • Trading Record
    • Year to December 2006
    • Year to December 2007e
  • Retail Proposition
  • Management, Marketing & Operations
  • Outlook
• CHAPTER 7 THE BODY SHOP
  • Company Overview
  • Market Share
  • Trading Record
    • Year to December 2007
    • Current Trading
  • Store Portfolio
  • Retail Proposition
  • Space Allocation
  • Management, Marketing & Operations
  • Outlook
• CHAPTER 8 LLOYDSPHARMACY
  • Company Overview
  • Market Share
  • Trading Record
    • Year to December 2006
    • Year to December 2007
  • Store Portfolio
    • Year to December 2006
    • Year to December 2007
  • Retail Proposition
  • Space Allocation
  • Management, Marketing & Operations
  • Outlook
• CHAPTER 9 THE PERFUME SHOP
  • Company Overview
  • Market Share
  • Trading Record
    • Years to December 2006, 2007 & 2008
  • Store Portfolio
  • Retail Proposition
  • Space Allocation
  • Management, Marketing & Operations
  • Outlook
• CHAPTER 10 SAVERS
  • Company Overview
  • Market Share
  • Trading Record
    • Year to December 2006
    • Year to December 2007e
  • Store Portfolio
  • Retail Proposition
  • Space Allocation
  • Management, Marketing & Operations
  • Outlook
• CHAPTER 11 SUPERDRUG
  • Company Overview
  • Market Share
  • Trading Record
    • Year to December 2007
  • Store Portfolio
  • Retail Proposition
  • Space Allocation
  • Management, Marketing & Operations
  • Outlook
• CHAPTER 12 DEBENHAMS
  • Company Overview
  • Market Share
  • Trading Record
    • Year to August 2007
    • Six months to March 2008
    • Current Trading
  • Store Portfolio
  • Retail Proposition
  • Space Allocation
  • Marketing & Operations
  • Outlook
• CHAPTER 13 HOUSE OF FRASER
  • Company Overview
  • Market Shares
  • Trading Record
    • Year to January 2008
    • Christmas Trading
  • Store Portfolio
  • Retail Proposition
  • Space Allocation
  • Management, Marketing & Operations
  • Outlook
• CHAPTER 14 ASDA
  • Company Overview
  • Market Shares
  • Trading Record
    • Year to December 2007e
  • Store Portfolio
  • Retail Proposition
  • Space Allocation
  • Management, Marketing & Operations
  • Outlook
• CHAPTER 15 WM MORRISON
  • Company Overview
  • Market Shares
  • Trading Record
    • Year to January 2008
  • Store Portfolio
  • Retail Proposition
  • Space Allocation
  • Management, Marketing & Operations
  • Outlook
• CHAPTER 16 SAINSBURY
  • Company Overview
  • Market Shares
  • Trading Record
    • Year to March 2008e
  • Store Portfolio
  • Retail Proposition
  • Space Allocation
  • Management, Marketing & Operations
  • Outlook
• CHAPTER 17 TESCO
  • Company Overview
  • Market Shares
  • Trading Record
    • Year to February 2008
    • Current Trading
  • Store Portfolio
  • Retail Proposition
  • Space Allocation
  • Management, Marketing & Operations
  • Outlook
• CHAPTER 18 GLOSSARY
  • Financial Statistics - VAT
  • Trading Profile
  • Physical Development
  • Abbreviations & Definitions
• List of Tables
  • Table 1: Total health & beauty market expenditure1998-2008e
  • Table 2: Consumer spending at current prices in keyhealth & beauty product markets 2003-2008e
  • Table 3: Health & beauty product markets growthrates 2003-2008e
  • Table 4: Category shares of the health & beautymarket 2003-2008e
  • Table 5: Health & beauty - channels of distribution2003-2008e
  • Table 6: Grocers health & beauty sales 2003-2008e
  • Table 7: Health & beauty specialists sales of health& beauty products 2003-2008e
  • Table 8: Department stores health & beauty sales2003-2008e
  • Table 9: Mail order health & beauty sales 2003-2008e
  • Table 10: Pharmacy and specialist health & beautystore numbers 1998-2008e
  • Table 11: Health & beauty specialists sales trends1997-2008e
  • Table 12: Health & beauty selling space and salesdensity 2003-2008e
  • Table 13: Summary of health & beauty market sharedata for key retailers 2007e on 2006 and health & beauty sales growth2007e on 2002
  • Table 14: Summary of H&B key retailers market shares2003-2008e
  • Table 15: Retailers share of the health & beautymarket 2003-2008e
  • Table 16: Health & beauty sales 2002 & 2007e
  • Table 17: Specialist health & beauty retailers keyoperating statistics 2006/07
  • Table 18: Health & beauty retailers UK store profilestatistics 2006/07e
  • Table 19: Total advertising spend 2004-2007
  • Table 20: Advertising expenditure by media as % of total2007
  • Table 21: Alliance Boots space breakdown 2007
  • Table 22: H&B specialists space breakdown 2007
  • Table 23: Grocers space breakdown 2007
  • Table 24: Department stores space breakdown & marketaverage 2007
  • Table 25: Aveda key facts 2008
  • Table 26: Crabtree & Evelyn key facts 2008
  • Table 27: Holland & Barrett key facts 2008
  • Table 28: Jo Malone key facts 2008
  • Table 29: Liz Earle key facts 2008
  • Table 30: L'Occitane key facts 2008
  • Table 31: Lush key facts 2008
  • Table 32: Molton Brown key facts 2008
  • Table 33: Neal's Yard key facts 2008
  • Table 34: Passion for Perfume key facts 2008
  • Table 35: Space NK key facts 2008
  • Table 36: The Fragrance Shop key facts 2008
  • Table 37: Niche health & beauty retailers - Summary2008
  • Table 38: Alliance Boots company overview 2008
  • Table 39: Alliance Boots* UK key operating statistics2003-2008e
  • Table 40: Alliance Pharmacy trading record 1995-2005
  • Table 41: Boots trading record 1996-2006
  • Table 42: Alliance Boots UK Retail - Pro forma tradingrecord 2006-2008e
  • Table 43: Alliance Pharmacy store profile 1996-2005
  • Table 44: Boots store profile 1996-2006
  • Table 45: Alliance Boots pro forma store profile2006-2008e
  • Table 46: Alliance Boots h&b space breakdown vsmarket average 2007
  • Table 47: Alliance Boots retail proposition 2008
  • Table 48: Avon UK company overview 2008
  • Table 49: Avon UK key operating statistics 2002-2007e
  • Table 50: Avon UK trading record 1997-2007e
  • Table 51: Avon retail proposition 2008
  • Table 52: The Body Shop company overview 2008
  • Table 53: The Body Shop UK key operating statistics2003-2007e
  • Table 54: The Body Shop UK trading record 1998-2007e
  • Table 55: The Body Shop UK store profile 1998-2008e
  • Table 56: The Body Shop retail proposition 2008
  • Table 57: Body Shop health & beauty space vs marketaverage 2007
  • Table 58: Lloydspharmacy company overview 2008
  • Table 59: Lloydspharmacy key operating statistics2002-2007e
  • Table 60: Lloydspharmacy trading record 1998-2007e
  • Table 61: Lloydspharmacy store profile 1998-2007e
  • Table 62: Lloydspharmacy retail proposition 2007
  • Table 63: Lloydspharmacy Space Allocation 2007
  • Table 64: The Perfume Shop company overview 2008
  • Table 65: The Perfume Shop key operating statistics2003-2007e
  • Table 66: The Perfume Shop trading record 1997-2007e
  • Table 67: The Perfume Shop store profile 1998-2008e
  • Table 68: The Perfume Shop retail proposition 2008
  • Table 69: The Perfume Shop space breakdown vs market av.2007
  • Table 70: Savers company overview 2008
  • Table 71: Savers key operating statistics 2002-2007e
  • Table 72: Savers trading record 1997-2007e
  • Table 73: Savers UK store profile 1997-2007e
  • Table 74: Savers retail proposition 2008
  • Table 75: Savers space breakdown vs market average 2007
  • Table 76: Superdrug company overview 2008
  • Table 77: Superdrug key operating statistics 2002-2007e
  • Table 78: Superdrug trading record 1997-2007e
  • Table 79: Superdrug store profile 1997-2007e
  • Table 80: Superdrug retail proposition 2008
  • Table 81: Superdrug h&b space breakdown vs marketaverage 2007
  • Table 82: Debenhams company overview 2008
  • Table 83: Debenhams key operating statistics 2003-2008e
  • Table 84: Debenhams trading record 1997-2007
  • Table 85: Debenhams UK store portfolio 1997-2007
  • Table 86: Debenhams retail proposition 2008
  • Table 87: Debenhams health & beauty space vs marketaverage 2007
  • Table 88: House of Fraser company overview 2008
  • Table 89: House of Fraser key operating statistics2003-2008e
  • Table 90: House of Fraser trading record 1998-2008e
  • Table 91: House of Fraser store portfolio 1997-2008e
  • Table 92: House of Fraser confirmed opening plans to2010
  • Table 93: House of Fraser retail proposition 2008
  • Table 94: House of Fraser h&b space breakdown vsmarket average 2007
  • Table 95: Asda company overview 2008
  • Table 96: Asda key operating statistics 2002-2007e
  • Table 97: Asda trading record 1997-2007e
  • Table 98: Asda store profile 1997-2007e
  • Table 99: Asda retail proposition 2008
  • Table 100: Asda health & beauty space breakdown vsmarket average 2007
  • Table 101: Morrison company overview 2008
  • Table 102: Morrison UK key operating statistics2003-2008e
  • Table 103: Morrison trading record 1998-2008
  • Table 104: Morrison store profile 1998-2008
  • Table 105: Morrison retail proposition 2008
  • Table 106: Morrison h&b space breakdown vs marketaverage 2008
  • Table 107: Sainsbury company overview 2008
  • Table 108: Sainsbury UK key operating statistics2003-2008e
  • Table 109: Sainsbury trading record 1998-2008e
  • Table 110: Sainsbury supermarkets store profile1998-2008e
  • Table 111: Sainsbury retail proposition 2008
  • Table 112: Sainsbury h&b space breakdown vs marketaverage 2007
  • Table 113: Tesco company overview 2008
  • Table 114: Tesco key operating statistics 2003-2008
  • Table 115: Tesco trading record 1998-2008
  • Table 116: Tesco store portfolio 1998-2008
  • Table 117: Tesco retail proposition 2008
  • Table 118: Tesco online retail proposition 2008
  • Table 119: Tesco health & beauty space vs marketaverage 2007
  • Table 120: Health & beauty market definition
• List of Figures
  • Figure 1: Health, beauty & pharmacy market 2007
  • Figure 2: Consumer spending and retail sales componentsof the health & beauty market 2007
  • Figure 3: Health & beauty expenditure and growth2003-2008e
  • Figure 4: Total health & beauty expenditure as apercentage of total retail expenditure 2003-2008e
  • Figure 5: Health & beauty expenditure growth % vstotal retail expenditure growth 2003-2008e
  • Figure 6: Grocers % share of total health & beautymarket sales 2003-2008e
  • Figure 7: Specialists % share of total health &beauty market sales 2003-2008e
  • Figure 8: Department stores % share of total health& beauty market sales 2003-2008e
  • Figure 9: Mail order % share of total health &beauty market sales 2003-2008e
  • Figure 10: Winners & losers in market share 2007 on2006
  • Figure 11: Forecast winners & losers in market share2008e on 2007
  • Figure 12: Winners & losers in market share e2008 on2003
  • Figure 13: Leading five retail chains % share of thehealth & beauty market 2003-2008e
  • Figure 14: Advertising expenditure as % of sales2003-2007
  • Figure 15: Key issues in health & beauty 2008
  • Figure 16: Big four grocers' combined sales and marketshare 2002-2008e
  • Figure 17: Specialists responses to grocers developmentsin h&b 2008
  • Figure 18: Retail responses to natural, ethical andhealth trends 2008
  • Figure 19: Deregulation in pharmacy market leads toconsolidation 2008
  • Figure 20: Forecast price inflation by health &beauty category 2008
  • Figure 21: Men's toiletries expenditure as a % of health& beauty expenditure 1997-2012
  • Figure 22: Health & beauty categories forecastgrowth % 2007-2012
  • Figure 23: Health & Beauty categories forecastgrowth (£m) 2012 on 2007
  • Figure 24: Smaller Health & Beauty retailers,revenue growth 2006-07
  • igure 25: Boots health & beauty market shares2003-2008e
  • Figure 26: Boots and Alliance store formats health &beauty space as proportion of total retail space 2005-2007
  • Figure 27: Boots (large format) health & beautyspace allocation 2007
  • Figure 28: Boots (OOT format) health & beauty spaceallocation 2007
  • Figure 29: Boots (small format) health & beautyspace allocation 2007
  • Figure 30: Alliance Pharmacy health & beauty spaceallocation 2007
  • Figure 31: Avon health & beauty market share2003-2008e
  • Figure 32: The Body Shop health & beauty marketshare 2003-2008e
  • Figure 33: The Body Shop proportion of health &beauty space 2005-2007
  • Figure 34: The Body Shop health & beauty spaceallocation 2007
  • Figure 35: Lloydspharmacy health & beauty marketshare 2003-2008e
  • Figure 36: Lloydspharmacy proportion of health &beauty space 2007
  • Figure 37: Lloydspharmacy health & beauty spaceallocation 2007
  • Figure 38: The Perfume Shop health & beauty marketshare 2003-2008e
  • Figure 39: The Perfume Shop health & beauty spaceallocation 2007
  • Figure 40: Savers health & beauty market share2003-2008e
  • Figure 41: Savers health & beauty as proportion ofretail space 2005-2007
  • Figure 42: Savers health & beauty space allocation2007
  • Figure 43: Superdrug health & beauty market share2003-2008e
  • Figure 44: Superdrug proportion of health & beautyspace 2007
  • Figure 45: Superdrug health & beauty spaceallocation 2007
  • Figure 46: Debenhams health & beauty market share2002-2008e
  • Figure 47: Debenhams proportion of health & beautyspace 2007
  • Figure 48: Debenhams health & beauty spaceallocation 2007
  • Figure 49: House of Fraser health and beauty marketshares 2003-2008e
  • Figure 50: House of Fraser proportion of health &beauty space 2007
  • Figure 51: House of Fraser health & beauty spaceallocation 2007
  • Figure 52: Asda health & beauty market share2003-2008e
  • Figure 53: Asda proportion of health & beauty space2007
  • Figure 54: Asda health & beauty space allocation2007
  • Figure 55: Morrison health & beauty market share2003-2008e
  • Figure 56: Morrison proportion of health & beautyspace 2005-2007
  • Figure 57: Morrison health & beauty space allocation2007
  • Figure 58: Sainsbury health & beauty market share2003-2008e
  • Figure 59: Sainsbury proportion of health & beautyspace 2007
  • Figure 60: Sainsbury health & beauty spaceallocation 2007
  • Figure 61: Tesco health & beauty market share2003-2008e
  • Figure 62: Tesco proportion of health & beauty space2007
  • Figure 63: Tesco health & beauty space allocation2007