Superdrug

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Superdrug Stores PLC
Subsidiary
Industry Retail
Founded 1964; 53 years ago (1964)
Founders
Headquarters Croydon, South London
Number of locations
787+ (recently announced intentions to open 100 stores over the next three years taking the total to over 887)
Key people
Products B. Skin Care & Make Up
Solait Suncare & Bronzing
Arora Indulgent Bathing
Services Prescriptions, Health Checks, Threading, Lazer Hair Removal & Botox
Revenue Increase £1.11 billion, up 5.4% on 2014. (2015)
Increase Pre-tax profit of £62.2m, up 62.4% on 2014. (2015)
Owner CK Hutchison Holdings
Parent A.S. Watson Group
Website www.superdrug.com

Superdrug Stores PLC (trading as Superdrug) is a health and beauty retailer in the United Kingdom, and the second largest in the country behind Boots. The company has been a subsidiary of A.S. Watson Group since October 2002, itself part of the Hong Kong conglomerate CK Hutchison Holdings.

It trades from nearly 900 stores across the United Kingdom and Ireland, with the recent intention another 100 over the next three years. Superdrug employs over 14,000 people, ranging from minimum wage jobs to some of the highest paid within the industry. Superdrug is currently the United Kingdom's fastest growing health and beauty retailer, more than doubling its profit in 2015.[citation needed]

Besides health and beauty products, the company also have pharmacies with consultation rooms in over 220 stores, and a further 19 contain nurse clinics. It maintains links with its sister companies also owned by A.S. Watson Group, Savers and The Perfume Shop.

History[edit]

Origins and expansion[edit]

Superdrug in the Horsefair Centre, Wetherby, West Yorkshire
Superdrug, Kings Mall, Hammersmith, London (2016)

In 1964, Superdrug was incorporated under the name of Leading Supermarkets Limited by the Goldstein brothers in London, both of whom had experience working in the grocery retail industry. Later that year the business adopted the present name. The first official Superdrug Store opened in Putney, London on 26 April 1966.[citation needed]

By 1968, there was a total of three stores trading, Putney, Croydon and Streatham, also in the same year Superdrug acquired its first distribution centre, which was situated in Wimbledon. The chain grew rapidly, and expanded to a chain of forty stores by the early 1970s, and in 1971, The Rite Aid Corporation, an American drugstore chain, acquired 49% of the business.[citation needed]

By 1981, there were three hundred Superdrug stores in the United Kingdom, and they opened their 11,148 m² (120,000 ft²) distribution centre and office complex at Beddington Lane in Croydon. This particular distribution centre closed in July 2007, and the southern distribution operation moved to Dunstable, although the head office remains in Croydon. The northern distribution operates from Pontefract.[citation needed]

In 1983, the business was floated on London's Unlisted Securities Market stock market.[1]

In March 1987, Superdrug was sold to Woolworth Holdings (now known as Kingfisher plc) for £57 million.[1] The sale allowed accelerated growth of the brand through utilisation of Kingfisher's surplus high-street property portfolio and substantial financial assets.

In January 1988, Superdrug acquired Tip-Top, a discount drugstore chain which had a large presence in the north of England and Scotland, and Share Drug Stores plc, a southern based chain. These acquisitions and a continually aggressive expansion programme saw the chain grow to six hundred outlets throughout the United Kingdom.

Superdrug continued to grow over the next 8 years, increasing profitability and market share. In 1995, the company began a rebranding programme, which saw it leave behind its discount heritage and move upmarket, with a new corporate identity – under the banner “the real beauty is the price” – and new larger stores in prime retail locations.

This led to a marked increase in prices in order to fund a higher cost base, and left the chain vulnerable to attack from new discount chains, such as Savers and Wilkinson, who were rapidly expanding at the time and the supermarkets such as Tesco and Asda, who were growing their presence in the high margin non food sector.[citation needed]

Acquisition[edit]

Facing increasing pressure from supermarkets and new discount chains, in July 2001, Superdrug was sold to Kruidvat, a drugstore operator from continental Europe, to allow Kingfisher to focus on its DIY and electrical chains. Kruidvat was subsequently sold to AS Watson, the retail and manufacturing business of the Hong Kong conglomerate CK Hutchison Holdings formally Hutchison Whampoa in November 2002.

AS Watson is also the parent company of Savers, the United Kingdom's number three drugstore chain. Subsequently, several of Superdrug's smaller stores were converted into Savers, and approximately three hundred Savers stores were converted into branches of Superdrug.

In April 2006, Superdrug entered the Republic of Ireland, and began rolling out its "next generation" stores, the first of which opened in Uxbridge. These focused on cosmetics and fragrance above all else and used plasma screens throughout the store. Superdrug announced their intention to create 150 more next generation stores in 2008.[2]

Recent years[edit]

In February 2010, Superdrug became a BUAV approved retailer,[3] joining several other high street chains in pledging its own brand products will be free from animal testing. All Superdrug own label products carry the leaping bunny cruelty free logo. This does not, however, cover products made by other brands sold in the store.

During 2010, Superdrug went into partnership with sister company The Perfume Shop by trialling shop in shop concessions. The partnership was tried in eleven stores of Superdrug, including; Aylesbury, Milton Keynes, Bury, Glasgow, Westfield London and Kensington High Street.[4]

Products[edit]

In February 2012, Superdrug went into partnership with Pro Skin Clinics, which has enabled Superdrug to offer specialist skincare clinics instore. Treatments on offer range from laser hair removal to facials. Superdrug planned to have fifty clinics by the end of 2013, starting with stores on Kensington High Street and Oxford Street, and then concentrating on recently refurbished stores.[5]

In February 2013, Superdrug ventured into the Premium Skin Care market, by launching a new and exclusive brand called “B”. The brand offers both skin care and makeup, and was launched during January to February 2013, accompanied by a multimillion-pound advertising campaign including television advertising, magazine promotion, blogger reviews and a pop up tour around the United Kingdom's largest shopping centres.[6]

It became first high street retailer to offer chickenpox vaccination in 58 of its stores, at a cost of £65 per dose, two doses being required, in July 2017.[7]

Marketing[edit]

Advertising[edit]

On 1 October 2010, the campaign Take Another Look was launched by Superdrug to encourage customers to “Take Another Look” at the company.[8]

On 7 February 2013, Superdrug launched a new marketing and advertising campaign, “That Superdrug Feeling”, featuring actual Superdrug staff from their stores.[9]

Dare Magazine[edit]

Superdrug's Dare Magazine underwent a major makeover, to bring it in line with the companies "Take Another Look" Campaign. The Magazine is distributed instore and on the street's of London for free. On 10 February 2011, Superdrug announced that the magazine would be the first customer magazine to use digital watermarking technology.

Readers will be able to use their smartphone to view interactive video content, and access exclusive news and tips by scanning digital watermarks, embedded in the magazine.[10]

Loyalty card[edit]

On 11 May 2011, Superdrug launched their first reward card called, The Beautycard.[11] The card was launched as part of the Take Another Look campaign, which has been at the heart of the companies marketing strategy since October 2010. On 27 May 2011, Superdrug announced they had signed up one million customers to its loyalty card scheme.[12]

In 2015, Superdrug adapted their loyalty card in order to appeal to more of a mass market, renaming it Health and Beautycard. The concept of the card containing a mirror remained but was redesigned to give a more mature look and feel.

Controversies[edit]

In December 2007, Superdrug was forced to withdraw a women's punch bag following complaints from anti-domestic violence campaigners. The man-shaped product encouraged women to insert a photo of a male in the punch bag's face and had an arrow pointing at the groin stating – "kick him here".

The ManKind Initiative said it was disgraceful that a national retailer like Superdrug should be openly selling products encouraging domestic violence against men. Following the complaints, the retailer withdrew the product, and promised to donate any profits from sales of the item to domestic violence charity The ManKind Initiative.[13][14]

References[edit]

  1. ^ a b "Superdrug History". Retrieved 1 September 2008. 
  2. ^ "Superdrug rolls out the next generation". July 2007. 
  3. ^ "Superdrug becomes BUAV approved". 19 February 2010. Retrieved 26 July 2010. 
  4. ^ "The Perfume Shop to trial Superdrug tie-up". retail-week.com. Retrieved 25 August 2015. 
  5. ^ Holland, Tiffany (24 February 2012). "Superdrug launches advanced skincare clinics". Retail Week. Retrieved 13 July 2012. 
  6. ^ "Superdrug set to unveil new beauty brand, B". The Drum. 14 February 2013. Retrieved 21 September 2013. 
  7. ^ "Superdrug becomes first high street retailer to offer chickenpox vaccine". Manchester Evening News. 12 July 2017. Retrieved 12 July 2017. 
  8. ^ "Superdrug makes TV comeback with a new ad". marketingweek.co.uk. Retrieved 12 October 2010. 
  9. ^ "Superdrug set to run new ad campaign featuring real staff from its stores". The Drum. 17 January 2013. Retrieved 21 September 2013. 
  10. ^ "Superdrug's customer mag Dares to go digital - News - Marketing Week". 4 September 2012. Archived from the original on 4 September 2012. 
  11. ^ Baker, Rosie. "Superdrug takes on Boots with loyalty". Marketing Week. Retrieved 13 July 2012. 
  12. ^ Creevy, Jennifer (27 May 2011). "Superdrug signs first million users for loyalty card". Retail Week. Retrieved 13 July 2012. 
  13. ^ Truscott, Claire (7 December 2007). "Counted out: Superdrug withdraws man-shaped punchbag". The Guardian. London. Retrieved 24 May 2010. 
  14. ^ "Superdrug Press Release" (PDF). Mankind.org.uk. Retrieved 21 September 2013. 

External links[edit]