Boots profits soar as Korean skincare trends dominate beauty industry

In the UK, Boots, the health and beauty retailer, enjoyed a significant sales boost between September and November 2024, reporting an 8.1% increase compared to the same period in 2023. The growth was influenced by a surge in digital sales, which grew by nearly 25%, while store sales also exhibited positive trends, particularly in flagship and travel locations. Boots experienced a record-breaking Black Friday, marking its largest sales day ever with nearly five transactions occurring every second at peak hours, showcasing a strong customer interest in its beauty category. The retailer's beauty segment was particularly robust, increasing by 11% year-on-year. Popular beauty products included fragrance, skincare, and premium items. Additionally, significant growth was noted for Korean skincare products, attributed to the rising K-beauty trend that has attracted more customers to premium offerings. During this quarter, Boots introduced six new brands, like Anua, popular on TikTok, and the hypoallergenic skincare brand Skin1004, further capitalizing on the growing beauty market. Despite this success, Boots observed a shift in customer preferences, with more shoppers opting for its own-brand beauty products, which are competitively priced compared to premium labels. There was an indication that customers have been increasingly interested in vitamins and supplements, aligning with a broader trend of consumers seeking health and wellness products. The company did not include December sales in its latest update, although it mentioned signs of solid trade during the Christmas season. Looking ahead, Boots is preparing to navigate heightened cost pressures in 2025, following the recent autumn Budget in the UK. Anthony Hemmerdinger, managing director of Boots UK and Ireland, emphasized the company’s commitment to its transformation strategy and plans for enhancing customer experiences. He also expressed concerns shared by other major UK retailers about potential job losses and increased prices due to proposed Budget tax hikes. Amid these challenges, Boots continues to focus on sustainable long-term growth while managing its store estate, having reduced its number of locations over the past year.