In a world where shopping for beauty products often leads us to high-end boutiques and specialty stores, there's a hidden gem waiting to be discovered in an unlikely place, the humble supermarket. Look around at your local shop and you’ll notice that its bustling aisles now boast an array of beauty treasures that can rival even the most exclusive beauty retailers.

In the ever-changing landscape of retail, supermarkets are undergoing a silent revolution, transforming from places where you grab your groceries to unexpected beauty havens. Grocery stores now boast an extensive range of beauty products. Let’s delve into the reasons why supermarkets are elevating their beauty offerings, what you need to know about this trend and what consumers want from their shopping experiences.

Why are supermarkets tapping into beauty?

Maximising Profits:

In the face of the cost of living crisis, supermarkets are feeling the pinch in their food profits. This squeeze has led them to explore other avenues, and beauty products, with their higher profit margins, have become an enticing prospect. By expanding their beauty offerings, supermarkets aim not only to boost their profits but also to encourage shoppers to increase their average transaction value. Beauty is historically the most buoyant category in a recession, whereas Fashion and Homeware categories have taken a downturn.

This is what you need to know about this trend

Navigating the Beauty Aisles:

The challenge lies in how customers navigate the expanding beauty offerings in a self-service environment. There is a huge opportunity for sales, as shoppers consolidate their spending into as few transactions as possible, so supermarkets are trying to capitalise on this. Offering as much breadth of choice as possible will benefit the supermarkets, but also present a challenge, as shoppers are in a 'swipe and go' frame of mind, rather than behaviours learned in a department store where salespeople are on hand to teach customers about the products in hand. However, this presents a new challenge: how to help customers make informed decisions without the presence of knowledgeable salespeople. Innovative solutions like digital screens and strategic signage are stepping in, guiding customers and adding a touch of sophistication to the shopping experience.

Why consumers are shopping beauty at supermarkets

UK consumers are shopping at Supermarket aisles as well as big Beauty halls for a variety of reasons, but these are the most striking and important for both sides of the retail table to consider:

People are busy, and having a wide range of brands, as well as own-brand products, available where they also do their grocery shop saves people time.

In the midst of the continued Cost of Living crisis, many shoppers are trading down to more affordable brands for their Beauty, Makeup and everyday Wellness purchases.

Research may be done online with the brands before shopping, so the customer doesn’t have to spend their time learning and researching in store, they are shopping with a list in mind, which fits the Supermarket model as a ‘grab-and-go’ item.

With more Supermarkets introducing Loyalty Rewards and points, shopping Beauty at the Supermarket can benefit the customer financially too.

In the last few years, UK supermarkets have become credible beauty destinations for shoppers.

The Rise of Beauty Dupes

Ever heard of beauty “dupes”? These are affordable alternatives to high-end beauty products. Supermarkets like Aldi have capitalised on this trend, offering quality dupes that shoppers rave about. This strategy not only caters to the budget-conscious consumer but also creates buzz around their products, enhancing their appeal.

What consumers want

Who is winning

My observations are that Sainsbury’s and Aldi have emerged as leaders in this space, as they have built great reputations as Beauty destinations, catching a lower price bracket shopper. Sainsbury’s has a great range of branded Beauty through its Future Brands Programme, actively supports upcoming brands and curates in-store destinations for emerging trends. Aldi has become recognised as a destination for beauty dupes. There is a segment of customers who just got to Aldi for Beauty dupes such as the TikTok famous hand wash.

These retailers differentiate themselves through products, extensive ranges, reputation, and a deep understanding of their customers and what they want, which sets them apart in the competitive grocery market and in a buoyant beauty market.

The Future of Supermarket Beauty

The future of supermarket beauty is promising. As shoppers increasingly value convenience, time-saving, and affordability, supermarkets are here to stay as credible beauty destinations. Brands are not just trading and marketing within the stores; the opportunity is to create engaging activities outside, leveraging social media, online platforms, advertising and pop-ups to enhance sales and customer engagement.

The biggest opportunity for supermarkets is elevating how customers navigate the Beauty offerings in a self-service environment, especially as the category expands and more brands are stocked. As the supermarket isn’t a place where shoppers often ask for advice or guidance, signage and ‘shelf-talkers’ are really key here, to show the customer what they are looking for, how they navigate brands within categories, and the options therein. Digital screens are the next step, as these would also lend a more premium feel, with content syndicated on websites and in-store, with a dual purpose.

Another of the big challenges supermarkets and brands face is scalability. Teams in store will have to ensure that the presentation and execution of visual merchandising are maintained. This can be a challenge as the running of a supermarket is very different to a pure-play beauty store or department store. For example in a supermarket keeping the shelves stocked and checkouts flowing is a key priority and could override the importance of visual merchandising.

Many supermarkets are getting savvy in categorising their Beauty products, creating trends or features at the ends of aisles, and making that part of the store feel more like a destination.

In this era of rapid change, supermarkets have reinvented themselves as more than just places to buy groceries. They have become hubs of beauty exploration, catering to the needs and desires of the modern, busy consumer.

How can beauty brands drive revenue through supermarkets?

As with a lot of the brands I work with, who are trying to leverage and grow sales and build better relationships with retailers, it’s important that brands are trading and marketing the brand with the retailers but also creating activations outside of the retailer to build sales and engagement.

Read my top tips on trading with retailers here.

I see the future of supermarket Beauty growing, many retailers are trying to get into Beauty, some more successful than others. We will see winners and losers, as beauty is a hugely competitive market. I anticipate supermarkets will keep beauty as a revenue stream, some as a serious growth category.

Is the grocery aisles the right distribution strategy for your brand? They certainly need to be considered but I stand by the same principles when approaching distribution.

If you want help with launching your brand into retail or maxismising your retail partnerships you are in the right place. Get in touch now as I am here to help

Read more insights on these articles I contributed to in The Industry.Beauty and Cosmetics Business

Winning at retail

If your brand is not growing with retail partners then you have a problem! Retail is booming for many… I’ve been witnessing this and reading so much recently. It’s all to play for.

• Teenagers screaming with delight as they jump off the train at Westfield with their Mums

• A 30-person queue to get into the Sephora store

• Multi-brand beauty retailers driving huge growth online while brand DTC channels are trading relatively flat

• Queues at tills 5-10 deep on the quietest Sunday in August in London

Retail partnerships are the biggest growth opportunity for brands. The most established brands have the majority of sales from retailers (sometimes too dominant, DTC is still important). Although we are about to see Glosser launch with Sephora! Many of the fastest-growing indie brands I’ve seen have a majority of sales coming from retail partners.

What To Review Now

• What’s your current sales channel mix?

• Where do you want this to be in 12 months time?

• What do you need to focus on or change to get there?

Make sure you win in retail… I have the right webinar for you if you’re just starting out.

“Trading With Global Retailers” Webinar Replay

Are you maximising the sales potential with your retail partners? Watch this free webinar to learn how to increase sales and better understand the buyer.

You will learn:

• The three mistakes brands make when trading with retailers so you can avoid them

• What buyers want to know at strategy meetings

• Gain a real insight into how to navigate the buyer relationship

• Retail vs DTC, what you should be considering as the landscape is evolving

This event is for brands (founder, or senior sales team and marketing teams) trading with large retailers.

I Would Love Your Help

Growing a business takes time (and blood sweat and tears!) and I am learning to ask for more help and feedback, here are four ideas that would help enormously:

• Share this blog with anyone you think would find it useful

• Post this blog on LinkedIn

• Help me create more in-person events by either sponsoring the next event or sending sponsors my way

• Comment on my LinkedIn posts to help engagement

I highly appreciate it!

MARKET INSIGHTS, WORKSHOPS AND STRATEGY ADVISORY

I can support you with market overview talks and workshops that will help you understand what’s changing in the market and how you can adapt your strategy.

Market overviews can then be followed up with ideation workshops and mentoring for teams and individuals. This approach sets you up with avenues for growth and advises you on how and where to focus for the best results. It’s the best way to achieve significant results quickly, develop key stakeholders' knowledge and ensure the team is set up for success once the partnership concludes.

BUSINESS COACHING AND MENTORING

If you are looking for support to navigate your strategy or you want to reach your goals faster then I would love to support you. I will advise, teach, coach and mentor you to develop a focused strategy and am your sidekick through implementation. We can focus on:

• Review and map out your growth strategy

• Positioning and USP development to stand out and differentiate in the market

• Sales strategy with an achievable marketing strategy to support your goals

• Streamline your strategy to focus on more profit and engagement

SPEAKING AND SPONSORED EVENTS

I’m planning more live events to develop connections and inspiration with brands and retail leaders. If you are interested in getting your service solution in front of high-level retail leaders there are sponsorship opportunities.

Or if you would like me to speak at your next event or at away days you can also get in touch.

Send me an email at info@wizzandco.com and we can set up a time to speak.

JOIN THE RETAIL MASTERMIND

This high-level mastermind is not just another program—it's a carefully curated experience designed to accelerate your business growth in ways you've never imagined.

🚀 Scaling with Large Retailers: Unlock the full potential of your brand's trading opportunities with retail partners. Gain insight into buyer expectations, plan for strategy meetings and develop innovative marketing and commercial strategies to boost sales and profits.

🛍️ Maximise Key Trading Periods: Equipping you with peak planning strategies to ensure you make the most of high-impact trading seasons. Learn how to navigate both DTC channels and retail partnerships for maximum profit.

🌟 Brand Building: Craft a channel strategy that blends sales and profit goals. Stay ahead of market trends with retail insights and strategic foresight, while enhancing your brand's impact and profitability. Apply here.

You Made It!

It's time to redefine the way we think about beauty, and it all begins right where you least expect it. Thank you for reading to the end, please let me know your thoughts on this blog.

Wizz x