14 Jan 2021
Posted in Retail
The Hut Group’s aggressive expansion strategy places it ahead of rivals, says GlobalData
Following the news that The Hut Group (THG) has lifted its full-year sales guidance for the third time since its September IPO;
Mahya Agorlou, Retail Analyst at GlobalData, a leading data and analytics company, offers her view on the situation:
“THG has been a prime benefactor of the shift to online retailing, exacerbated by the closure of stores and changes in consumer interaction throughout the COVID-19 pandemic. The global online health and beauty market grew 40.4% in 2020, reaching an annual market size of $151.4bn, and THG’s focus on technology has stood it in good stead to react to the sudden change in shopping habits.
“THG, however, has not been alone in identifying this area of high growth – competitors such as Beauty Bay, Cult Beauty and Feelunique all stock a similar portfolio of brands. THG has employed an aggressive expansion strategy – including high-end US skincare retailer Dermstore.com from Target – to get ahead in this fragmented market. However, to protect itself and meet its lifted sales expectations, it is pivotal for THG to further expand on its offering on own-brand and premium-end beauty products to deepen its customer base and cultivate loyalty as more players enter the crowded market.”