Love Island tie-up helps Superdrug lift sales and profits
Superdrug’s tie-up with Love Island has helped drive a 16% profits leap as fans of the hit TV show snapped up bronzer, make-up and hair products.
The high street chain posted pre-tax profits of £92.9 million for 2017, up from £80.4 million the previous year, with like-for-like sales 2.5% higher.
Superdrug, which has continued its sponsorship of Love Island this summer, also said the trend for social media facemask selfies helped skincare sales rise 10%, with sheet-masks and bubble-masks popular products.
The group – owned by AS Watson, which is ultimately controlled by Hong Kong billionaire Li Ka-Shing – said overall revenues rose 2.3% to £1.2 billion as it bucked wider woes on the high street to open 22 more stores – taking its total at year-end to 804 across the UK and Ireland.
It invested £31 million last year, mainly on the new stores and refurbishments as well as its digital IT capability.
It comes as many rivals are axeing shops in the face of flagging sales.
Peter Macnab, chief executive of AS Watson health and beauty division in the UK, said: “We are pleased with the company’s performance, and the continued recognition of our colleague’s customer service efforts.
“This year we will continue to focus on offering customers the service and products they want, including our new Superdrug Mobile.”
The group launched its new mobile network last month offering members of its Health & Beauty card loyalty scheme a £10-a-month plan on pay as you go, with no contract.
Its annual results showed Superdrug’s share of cosmetic sales lifted to 32%, while sales of healthcare and wellbeing products rose 8%.
Website sales rose by more than 30% over the year, helped by a new mobile app and better delivery options.
AS Watson also owns the Perfume Shop and discount health and beauty firm Savers in the UK, but is a part of multinational conglomerate CK Hutchison Holdings.