A cost-of-living crisis is proving a challenging backdrop for many retailers this Christmas, however, one retailer is pretty confident that they can keep the tills ringing – Superdrug.
Chief commercial officer Simon Comins believes the retailer’s focus on value will help it emerge as a winner this festive period.
“Focusing on quality and value is at the heart of our Christmas plans this year. We think it’s going to be tough for everyone but we don’t want our customers not to be able to come in and spoil the people in their lives that they want to treat,” he tells Retail Gazette.
Comins already has a good idea about how Christmas will pan out as customers have started shopping earlier than ever this year, with sales of its festive gift sets up a whopping 219% in October.
Superdrug also went early with its Black Friday deals, which launched on 2 November, to help struggling consumers, and Comins says its customers have taken advantage of it.
“We really wanted to have customers that value when they need it,” says Comins. “People are shopping earlier than they’ve ever shopped because every single week they’re working out what they can spend and what they can’t spend.”
Superdrug’s own-brand Christmas
With shoppers watching their pennies, Comins believes Superdrug’s own-brand will be more critical than ever this year Christmas.
“Our own-brand gift sets are expected to feature heavily amongst the best sellers,” says Comins. “We know customers are wanting their money to stretch further and there’s no better way than coming into Superdrug and looking at our own-brand offer which is really broad.
“So whether you’re looking for your auntie, your sister, your brother, your kids, whoever it is, we have products and ranges at the prices that are for everybody.”
Own-brand is a big focus for Comins right now and it is “disproportionately growing ahead” of branded product.
Last month, the retailer launched a new own-brand makeup range, Studio London by Superdrug, expanding what was originally a gift offer into a full line. The majority of the range are £5 and under, again appealing to shoppers on a budget.
“You’ve got to continue to think of new things that are going to excite the customer,” says Comins.
“Even when you’ve got a cost-of-living crisis hanging over your head – and we know that’s going to continue into 2023 – you’ve got to continue to think of new things that are going to excite the customer but make sure it’s done via value.”
Exclusive ranges like Studio London and collaborations, such as its tie-up with RuPaul, are recent examples of this in action.
The retailer has also introduced more premium fragrances to its range in the run-up to Christmas.
“We all know that the sales of perfume peaks at Christmas, and to offer our customers those new brands this year is really exciting for us,” he says.
Helping shoppers during a tough 2023
Even during the final throes of peak, Comins is focused on next year, which he expects to be “tougher” for consumers.
In fact, throughout Christmas trading Superdrug has been running a campaign that gives shoppers a percentage off their next purchase in January when they buy a Christmas gift set.
“I think a lot of people may be using credit cards going into the Christmas season. When their credit card bill hits in January, we need to think about how we can help our customers then,” he says.
Despite the tougher trading environment, Superdrug believes its long-held value credentials can help it grow next year.
“We’ve got lots of ammunition,” he says.
He mentions Superdrug’s price freeze of 5,000 beauty items and its own-brand health items, along with its newly-launched marketplace, which hopes to “offer affordable products to UK consumers for the first time”.
“The focus on value is a big part of our investment, and that is evident in our marketplace offering,” he says.
He also highlights its Health & Beautycard, that offers members “the best possible savings” along with its planned promotions as ways it plans to not just retain but attract new customers.
“Having a strong promotional strategy is something that we’ve had for many years and something that we’re continuing with because we know our customers love it,” he says.
Comins believes the initiatives in place will help Superdrug not just retain share, but continue to grow.
“If you’ve got a clear strategy, and you know what your customers want, then it’s feasible to grow in this market.”
As long as we remain focused on our customers, focused on the online offer and the offline offer, then I think you can absolutely win.”
Few retailers will be so confident as we navigate through the most inflationary environment in generations.
However, Superdrug’s unwavering focus on value and what its customers want should help it weather the storm and emerge stronger.
