Superdrug cites service as key driver of 62% profit rise in 2015

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Superdrug cites service as key driver of 62% profit rise in 2015

 

Superdrug, part of the A.S. Watson Group, has posted an operating profit of £62.2m for 2015 – an increase of 62.4% from 2014.

Revenue growth was 5.4%, driven by a like-for-like sales increase of 6.6%. Make up and beauty accessories saw strong growth of 11%, while fragrance was also identified as an excellent performer.

The high street health and beauty retailer identified customer service as a key driver of this growth. Peter Macnab, CEO of A.S. Watson Health & Beauty UK, says: “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.”

Superdrug is recognized as a top 20 UK company for customer service, according to the UK Customer Satisfaction Index.

Superdrug continues to invest in its 787 stores, with a refurbishment programme underway to offer new merchandising and display units. Seven new stores opened in 2015, and the retailer aims to increase this opening rate in 2016.

Superdrug.com also experienced strong growth, with online sales increasing by over 50%. Meanwhile, the Health & Beautycard customer loyalty programme now has seven million members, with sales from members increasing by almost 5% over the previous period. Membership was last year opened up to customers in the Republic of Ireland, to mark the launch of Superdrug.com there.

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