Superdrug delivers 62% profit rise as customer service focus pays off
Superdrug show an operating profit for 2015 of £62.2 million, an increase of 62.4 per cent from the operating profit of £38.3 million reported for 2014.
The revenue growth was 5.4 per cent in 2015, driven by sales from like for like stores increased by 6.6 per cent. This strong LFL sales growth is on top of the 4.7 per cent recorded in 2014 showing the company’s continued growth momentum.
Makeup and beauty accessories saw strong growth of 11 per cent, while the fragrance category was another excellent performer with sales supported by an expansion of the range of designer brands such as Marc Jacobs, Dolce & Gabbana and Gucci.
Services in store also continue to grow and now customers can find health and beauty services in over 200 stores including eyebrow shaping, nail treatments and Glitter Lips, a sparkly lip treatment. Customers can also find health services such as travel vaccinations in 41 stores across the country, also nurse clinics operate in 24 stores where customers can find services such as weight management advice.
Superdrug.com saw strong growth with online sales increasing by over 50 per cent. The successful Superdrug Online Doctor service, dispensing products direct to customers’ doors or nearby stores, was joined by Superdrug Opticians which has performed well. 2015 also saw the company offer delivery from Superdrug.com to customers in the Republic of Ireland for the first time.
The customer loyalty programme, Health & Beautycard, continues to grow with seven million members who receive free online delivery, special member pricing and bespoke deals; the proportion of sales from members has increased by almost 5 per cent over the previous period, supported by enhanced benefits such as double points on all Christmas gifts and 10 per cent off events in key categories such as fragrance and cosmetics. To support the launch of Superdrug.com in Republic of Ireland customers there were able to become a Health & Beautycard member in store for the first time.
The company continues to invest in its store estate of 787 stores with a refurbishment programme underway to offer new merchandising and display units for customers. Seven new stores were also opened in 2015, with the company looking to increase this rate of opening in 2016.
2015 saw the second Superdrug Wellbeing store open in Watford, offering customers an innovative and service-led shopping experience. A focus on wellbeing and a more holistic approach to health saw the business become the nation’s number one retailer for diet and fitness products. Superdrug Pharmacies also took first place in the National Customer Satisfaction Index.
Peter Macnab, CEO of A.S. Watson Health & Beauty UK comments; “We have had a strong year and are pleased with the company’s performance. We believe the service offered in our stores is key, whether it’s our experts offering beauty and health services, or advice given about the latest products.
“We’ve also continued to invest in our store colleagues, to give them the tools they need to offer the best service and give great advice. We are delighted that Superdrug is now recognized as a top 20 UK company for customer service1.
“Looking to the future our strategy remains to offer customers everyday accessible health and beauty, giving them the products they are looking for at great prices, in a vibrant store environment.”