Tuesday, October 3, 2023

Consumers are reluctant to spend on health and beauty products

According to recent earnings announcements from retailers like Target and Walmart, consumers are showing robust spending patterns on health and beauty products. Despite a general decline in spending, shoppers are turning to online channels and omnichannel options to meet their self-care needs.

Target reported strength in the health and beauty segment, with comparable sales falling 5.4% year over year. However, the Essentials and Beauty categories saw moderate growth, led by Beauty. Core beauty sales posted double-digit growth, with Target’s Ulta Beauty sales more than doubling year over year.

Walmart also found that health and wellness items were among its strongest segments, along with groceries. US comparable sales, excluding fuel, rose 6.4%, driven by transactions in physical and digital stores. The health and wellness categories saw significant growth, with the number of teenagers increasing by several percentage points.

The shift towards buying health and beauty products online is evident in the data provided by PYMNTS. Amazon currently accounts for 5.1% of sales in this category, up from 2% before the pandemic, and Walmart is just behind at 5.9%. Additionally, a recent report highlighted that 39% of consumers are most likely to increase their online purchases of health and beauty products in the coming year.

This digital shopping trend provides favorable conditions for retailers such as Target, Walmart and Amazon as consumers continue to value self-care and maintaining/improving their health despite macroeconomic stresses. The convenience and accessibility that online channels offer has contributed to the resilience of this market segment.

World Nation News Desk
World Nation News Deskhttps://worldnationnews.com/
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