Superdrug is raking in record make-up sales at its 780 stores in the UK and Ireland, as the ‘lipstick effect’ boosts business.
The lipstick effect is the phenomenon in which consumers treat themselves to small indulgences like lipstick in tough times.
In this difficult period, the effect appears to be supercharged when a beauty product is promoted on social media.
Superdrug chief executive Peter McNab said: ‘We’re seeing record growth in cosmetics this year thanks to brands like the American brand Morphe and Trouble Maker Beauty, an entry-level vegan British range.
‘The Australian MCoBeauty is also doing very well. All have the backing of TikTok and Instagram.’
Superdrug is a division of AS Watson, the Hong Kong group which also owns The Perfume Shop and Savers, the discount beauty and household chain. Both are also benefiting from the lipstick effect.
Little luxuries: Superdrug is raking in record make-up sales at its 780 stores in the UK and Ireland despite the cost of living squeeze
The apparently resilient nature of demand for cosmetics, scent and skincare amid a cost of living squeeze may spark more speculation that AS Watson could be floated off by its parent company CK Hutchinson.
The other UK interests of this Hong Kong conglomerate include the Port of Felixstowe and 39 per cent of Northumbrian Water.
Earlier this year, CK Hutchinson is reported to have selected Goldman Sachs and UBS as advisers to a possible IPO of AS Watson – which has 17,000 stores in Europe and Asia employing 140,000 people.
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