Superdrug today said that its online sales grew by more than 60% in a year that it saw revenues grow by 10.4% and pre-tax profits by 41%.
It said that the growth was underpinned by improved website functionality and improved delivery solutions. Availability was also at “best ever” levels.
Overall, Superdrug reported sales of £1.2bn in 2016. That’s 10.4% up on the previous year, with like-for-like sales up by 7.8%. Pre-tax profits of £80.4m were up by 41% on last year.
Superdrug said that an innovative approach to merchandising had helped to drive customer engagement and transactions, helping to grow both sales (+14%) and market share (30%) in the cosmetics category.
A store opening programme included new sites in Fosse Park Leicester, and Castlepoint, Bournemouth. The retailer had 789 stores in the UK and Ireland by the end of the year.
Its loyalty card, the Health & Beautycard programme, had 9m registered customers by the end of 2016. Over the last two years membership has doubled. Sales made by members increased by 5%, supported, said parent company AS Watson , by benefits such as double points on Christmas gifts and ‘member-only’ pricing.
Peter Macnab, chief executive of AS Watson Health & Beauty UK, said: “We have had a strong year and are pleased with the company’s performance. We believe the service offered in our stores is key and we continue to invest into helping our colleagues offer great customer service and we were delighted to receive a CIPD award for Best Learning and Development Initiative for our customer experience training. This award is a brilliant endorsement of all the great work our colleagues do and I would like to thank every team member for their hard work and contribution to these results.
“Looking to the future our strategy remains to offer customers everyday accessible health and beauty, giving them the beauty and health services they need, and an unbeatable selection of products at great prices, in a vibrant and friendly store environment.”
