16 Apr 2020
Posted in Retail
COVID-19 presents an opportunity for beauty retailers as salons remain closed
Sales opportunities for non-food retailers are scarce amid the COVID-19 pandemic as lockdowns are enforced and non-essential stores remain temporarily closed. However, with 59.8% of consumers globally using salons and spas for treatments*, the desire to replicate salon treatments at home will provide a much needed revenue stream for beauty retailers, says GlobalData, a leading data and analytics company.
Kate Ormrod, Lead Retail Analyst at GlobalData, comments: “Essential health & beauty items such as paper products and bathroom toiletries are being prioritised, with more frivolous purchases abandoned by many. However, as the weeks go by and shoppers want to treat themselves and regain a sense of normality, we expect them to seek out at-home beauty and grooming alternatives now that their usual destinations for treatments are temporarily closed.”
As consumers strive to maintain their beauty regimes there will be an increase in demand for products such as hair dyes, hair removal creams and wax strips, self-tanners and nail products among others, as consumers strive to maintain their beauty regimes.
Ormrod continues: “GlobalData research reveals that of the 60% of global consumers who use salons and spas for beauty or grooming treatments, 18.9% attend appointments at least once a week, with usage higher among females*. Additionally, attending salons and spas is particularly rife among younger shoppers, with 74.1% of 25-34s receiving treatments – with the under 44s therefore more likely to carry out at-home treatments during lockdown.”
Although, health & beauty retailers are somewhat protected by the need for everyday essentials, sales will still fall this year owing to demand being decimated in categories such as fragrance.
Ormrod adds: “While not enough to offset the overall decline in health & beauty sales, beauty retailers have an opportunity to cater to consumers now finding themselves acting as their own beauticians, hairdressers, barbers and manicurists.”
* source: GlobalData’s Q3 2018 consumer survey