Superdrug reported plunging profits and sales for the year, despite its stores remaining open throughout lockdown.
For the 2020 financial year, the health and beauty retailer’s profits before tax fell by 79% in 2020 to £18.8m compared to £89.4m in 2019.
Revenues were also impacted by the decline in high street footfall, dropping 15% to £1.1bn. In the second quarter of the year alone, revenues plunged by 40% as footfall to high street stores was reduced by 75%.
Superdrug implemented a series of measures to counter the pandemic’s impact, cutting capital expenditure by almost half and cancelling all dividend payments.
The retailer also attempted to address the fall in customer visits in-store by introducing new initiatives online as website orders increased by 106% in 2020, including same day store-to-door delivery and 30 minute click and collect.
Superdrug offers help during Covid-19 pandemic
Superdrug’s Online Doctor Service also offered more than 40 online healthcare services to 1.6 million patients. The health division of the business also assisted in the vaccine rollout, vaccinating over 100,000 people in the first half of this year.
Chief executive Peter Macnab said: “On the Beauty side of the business, the decline in high street footfall, multiple lockdowns and ongoing social distancing measures has had a significant impact on 2020 revenue and continues to restrict sales recovery in 2021.
“Under such challenging circumstances it’s important to put customers at the heart of our business, and therefore we developed and launched over 700 new Own Brand ranges in 2020, strengthening our ‘Only At’ Superdrug offering and positioning ourselves as a top destination for beauty shoppers when lockdowns lift.”
Superdrug opened seven stores in 2020 despite difficult trading conditions, with the retailer’s largest Beauty Studio opening in Glasgow Silverburn. There is also a renewed focus on expanding Superdrug’s presence in retail parks in 2021, with new openings in MK1 and Rushden Lakes. The retailer also stated there are a further 15 store openings planned for later this year.
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