Superdrug

Superdrug Stores PLC

File:Superdrug.svg
Company type	Subsidiary of A.S Watson Group
Industry	Retail
Founded	1964 by Ronald & Peter Goldstein
Key people	Dominic Lai (Group Managing Director) Jeremy Seigal (CEO) Joey Wat (COO)
Products	Solait, Optimum, Natural High, Simply Pure
Services	Health Checks, Threading, Fish Pedicure
Operating income	Operating Profit of £15.2m
Owner	A.S Watson Group
Number of employees	16,000
Parent	Hutchison Whampoa
Website	www.superdrug.com

Superdrug Stores PLC (trading as Superdrug) is Britain's second-largest beauty and health retailer behind Boots. Superdrug - part of the AS Watson Group which in turn is part of the Hong Kong conglomerate Hutchinson Whampoa - is a UK based company with over 890 stores, which since 2006, includes the Republic of Ireland. The Company has two large Distribution Centre's, one in Pontefract and one in Dunstable. Both Distribution Centre's serve Superdrug, Savers and The Perfume Shop. The chain employs 16,000 people. Every store has a fragrance offer and over 220 stores include pharmacies with pharmacy consultation rooms. Additionally 19 stores contain nurse clinics offering health checks for lots of people every day.

History

Superdrug was founded in 1961, under the name of Leading Supermarkets Limited, by the Goldstein brothers in London, both of whom had experience working in the grocery retail industry. The business kept this name until 1966 when it was officially changed to Superdrug. It was in the same year that the company opened their first outlet in Putney, London.

The chain grew rapidly and expanded to a chain of 40 stores by the early 1970s and in 1971, The Rite Aid Corporation, an American drugstore chain, acquired 49% of the business.

In 1981, there were 300 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.

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

In 1987, Superdrug was sold to Woolworth Holdings (now known as Kingfisher plc) for £57 million. This allowed accelerated growth of the brand through utilization of Kingfisher's surplus high street property portfolio and substantial financial assets. In this year Superdrug acquired Tip-Top, a discount drugstore chain which had a large presence in the north of England and Scotland, and ShareDrug, a southern based chain. These acquisitions and a continually aggressive expansion programme saw the chain grow to 600 outlets throughout the UK.

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. This 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.

Facing increasing pressure from supermarkets and new discount chains 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 Hutchison Whampoa in 2002. AS Watson are also the parent company of Savers, the UK's number three drugstore chain.

In 2003, Superdrug, in conjunction with Hutchison's international branding function (behind brands such as PowWow and Orange), launched another rebranding campaign which saw all stores being rebranded in the new "you star" style.

Superdrug (now closed) on Oxford Street

As part of the rebrand, a store-by-store review was conducted of both Superdrug and Savers stores. As a result, several of Superdrug's smaller stores were converted into Savers, and approximately 200 Savers stores were converted into branches of Superdrug.

In 2006, Superdrug entered the Republic of Ireland, and began rolling out its "next generation" stores, the first of which opened in Uxbridge. These focussed 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.

In 2007 as well as the chain of stores having grown to over 900, it was announced that Superdrug was the largest growing fragrance retailer in the UK. Kelly Brook and the Beckhams both launched new perfumes in Superdrug stores.

Present Day

In February 2010 Superdrug became a BUAV approved retailer, joining several other high street chains in pledging its own brand products will be free from animal testing. This does not however cover products made by other brands sold in store.

Superdrug was a leading lobbyist in a 10 month campaign lobbying the UK Government to lower VAT on Condoms, the campaign was successful, resulting in VAT being lowered from 17.5% to 5% on condoms in 2006.

Over the past five years the company has worked with a number of charities. These included: The Prince's Trust, Institute of Cancer Research, The Teenage Cancer Trust and Cancer Research UK. Since 2006 raising over £1 Million for its nominated good causes.

Superdrug also signed up to the Governments skills pledge, to ensure that all the young people who work for the Company, have received the necessary vocational and educational skills through a modern apperenticeships scheme, Superdrug aims to provide this throughout its unique Team Academy Programme.

Superdrug also launched its £1 value cosmetics range 'Make Up Academy' (MUA) earlier in the year at certain stores. The range was successful and is set to make it into more stores later in the year.

Superdrug also celebrated 20 years of high street trade in Northern Ireland in 2010.

The company has stated that they plan to relaunch and refocus their own-brand products in 2010.

In October Superdrug plan to launch their first television advertising campaign for 10 years in a bid for customers to rediscover the brand for Christmas 2010.

It was announced on the 3rd August 2010, that Superdrug will cut the cost of Private Prescriptions. This means that consumers could make a possible saving of £4.70 on a private prescription originally costing £28.20. Superdrug has suggested other Pharmacies follow suit.

Superdrug are going into partnership with sister company The Perfume Shop by trialing shop in shop consessions. The partnership will be trialied in 11 Superdrug Stores, including; Aylesbury, Milton Keynes, Bury, Glasgow, Westfield London and Kensington High Street.

On 12 August 2010, Superdrug announced it was launching an Overnight Miracle serum. The Swiss Apple formula is part of Superdrug's own label range, Optimum. The formula originally only available in high end beauty ranges, ranging from £122 to £225. Superdrug's version contains the same ingerdients as the more expensive ranges and will cost just £9.99 when first launched and will rise to £14.99 in October.

In October Superdrug launch their first Television advertising campaign for 10 years. On the 3rd September 2010 Superdrug, announced they had signed a deal with Joanna Page the star of Gavin & Stacey, to make her the face of Superdrug. The campaign will be brand focused and not just about the products, and will run from October 1 through, and into 2011 with Christmas variations, and possibly further if the campaign is a success.

On 2 December 2010, Superdrug opened its first Bureau de Change, the consession opened in Superdrug's Liverpool Store in an aim to get customers to get everything they need for their Vacation under one roof.

On March 2, 2011 Superdrug came 4th in consumer poll carried out by Verdict Research. Superdrug came in the top five UK retailers according to the survey carried out on more than 6000 consumers, naming Superdrug the best for Personal Care. The top spot was taken by Department Store John Lewis, closely followed by Ikea and Waitrose.

Take Another Look

On October 1, 2010, the Take Another Look campaign was launched by Superdrug to encourage customers to "Take Another Look" at the company. The idea of the campaign is to prove that the company has changed. The campaign includes the company's first television advert for 10 years, fronted by the new face of Superdrug, Joanna Page, star of Gavin and Stacey. There will also be radio adverts and also in store to create maximum effect in order for the campaign to be a success. This brings in line the company's aim to be the best in everyday accessible beauty.

Superdrug is to make 2011 all about its customer, after announcing sales were up 1.7% in the four weeks to January 1, 2011. Superdrug will launch its first loyalty programme on May 11, 2011, in a bid to get to know their customer better and reward their customers for their loyalty. The card scheme will enable customers to earn and redeem points online and in-store. This brings the company in line with other AS Watson companies who also have their own loyalty cards, which boasts 35 million members world wide.

Superdrug are launching a new store format on March 25, 2011. As part of the 'Take Another Look' campaign, this is to help cement Superdrug as the Best in Everyday Accessible Beauty. The New look store is situated in the Centre Court Shopping Centre in Wimbledon. The store has been sectioned into different zones and designed by Dalziel+Pow. Ten further locations will see the new format by the end of April 2011, and others will follow by the end of the year.

In 2011, Superdrug and its sister company The Perfume Shop will strengthen their ties even further by expanding on their shop-in-shop format. 11 shop in shop formats were launched last year, and in 2011 50 more locations will be added to the scheme. The trail proved such a huge success for both companies, raising awareness of both companies and attracting new customers. Also as Superdrug launches its Beauty Card in May, The Perfume Shop will follow suit and also launch their own loyalty scheme, also in the form of points card. Both card schemes will be linked, possibly allowing customers to earn and spend points in both stores, but no formal details have been released yet.

On March 25, 2011, Superdrug launched a new concept store in the Centre Court Shopping Centre, Wimbledon. The new concept store designed by Dalziel & Pow takes its format straight from the fast-paced fashion market, reflecting trends and High-street fashion rather than trying to compete with competitors. The store is modern, fresh and lively, and has been sectioned into different zones: Make Up, Skin Care, Beauty, Hair, Mens, Everyday, Food and Health. The pharmacy has been made over to include a consultation room for more privacy for patients.

Beauty Card

Superdrug will launch their first reward card on 11th May, 2011. The reward scheme will be launched with a full Television Advertising campaign starring, the face of Superdrug, Joanna Page. This will form part of Superdrug's 'Take Another Look' campaign and is another step toward the company becoming the Best in everyday accessible beauty. The card scheme will allow cutomers to earn and redeem points online and in store, gaining 1 point per pound spent. There is also likely to be a link to The Perfume Shop loyalty card scheme, allowing customers to use their cards in either store, more formal details on this matter have yet to be announced.

On May 11, 2011, Superdrug launched their first reward card called, The Beautycard. The card has been launched as part of the 'Take Another Look' campaign, which has been at the heart of the companies marketing strategy since October 2010. Just two weeks after the launch of the Beautycard, the company launched it's new television advertising campaign to promote the Beautycard, featuring the tales of Brand Ambassador Joanna Page star of Gavin and Stacey. And on May 27, 2011 Superdrug announced they had signed up 1 million customers to its loyalty card scheme.

Dare Magazine

Superdrug's Dare Magazine has recently under gone a major makeover, which brings it in line with the companies "Take Another Look" Campaign. The Magazine is distributed in-store and on the street's of London for free. On February 10, 2011, Superdrug announced that the magazine would be the first UK 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.

Exclusive to Superdrug

This is a list of some of the brands which are exclusive to Superdrug stores (some ranges only available at selected stores) .

• Accessorize
• Andrea Fullerton
• Gosh
• Me Me Me
• NYC Cosmetics
• Bloom
• Beauty UK
• 2 True
• Scarlett & Crimson By Ruby & Millie
• Famous by Sue Moxley
• Fudge Urban
• Make Up Academy (MUA)
• Optimum
• Vitamin E
• Natural High
• Naturals
• Deep Action
• Solait
• Simply Pure
• Colour Sensations
• Colour Performance
• Colour Vibrance
• Colour Radiancene
• True Spirit
• The Beauty Parlour
• Scandalous
• Sinless Sun
• Miss Cole
• I Love...
• Sleek
• Naked Truth By Dr Darren McKeown
• Naked Natural Skin Care

Controversies

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 immediately and promised to donate any profits from sales of the item to domestic violence charity The Mankind Initiative.

Marketing Initiatives

Recently, Superdrug have undergone a huge experiential marketing campaign, holding product demonstrations throughout their stores. This campaign commenced after research proved that 89% of shoppers want to try something before they buy it and over 80% who take part in such demonstrations either make a purchase, or consider making a purchase after participating. Bourjois, Aveeno and L'Oréal products have all been demonstrated in this way.

Awards and Acclaims

2011

• UK's Best for Personal Care (Verdict Research)
• A Top Five UK Retailer (Verdict Research)

References

• http://www.gmb.org.uk/Templates/Internal.asp?NodeID=99163

External links

• Superdrug Official Website
• AS Watson Group Official Website
• Hutchinson Whampoa Official Website
• Beautycard Website