Woolworths Beauty may add nail and skin treatments at its existing beauty sections. The company recently opened its first standalone beauty store, along with a research and manufacturing centre, in Cape Town as part of its strategy to grow its beauty segment.
Julie Maggs, general manager for Woolworths Beauty, told Business Times that while the group did not have “any solid plans to open more locations just yet ... we are investigating how to improve our existing beauty offering in Woolworths stores and offer services like nail and skin treatments. We don’t want to limit ourselves to just stand-alone stores to bring unique services to our customers; we have started with existing beauty departments in our Woolworths stores.”
Woolworths’ beauty business has recorded strong growth over the last few years and the group aims to double it in the coming years. It “is incredibly optimistic about the future of Woolworths Beauty, and we’re investing heavily in its potential. The intention is to double our beauty business over the next three years, with R300m already invested to achieve this growth — and I’m happy to report that we’re well on our way to achieving our goal”, Maggs said.
The retailer also plans to add more skincare and make-up products at its stores in nine countries on the continent. She said Botswana and Namibia were launching significant new ranges that include international brands — a first for Woolworths stores — and there was room to expand this strategy to more countries.
Woolworths’ beauty business has recorded strong growth over the last few years and the group aims to double it in the coming years
The beauty and personal care market in South Africa is projected to generate revenue of $4.33bn (R78bn) this year, according to research firm Statista. It is forecast to experience an annual growth rate of 3.92% (CAGR 2024-2029). The market is thriving, Statista said, making it one of the fastest-growing consumer sectors, driven in particular by the cosmetics and skin care segment on the back of a generational shift as younger consumers enter the market. The change is reinforced by social media, international brands, and e-commerce.
Maggs said the launch of more international brands in South Africa had made the local retail industry more compelling, with shoppers now exposed to new ranges they had previously only seen in the media or online.
About 25% of the beauty products stocked at Woolies are private label products, such as WBeauty, and the remaining 75% is made up of external brands, both local and international. Of its private labels, about 85% of items are produced locally. Across its various suppliers, Maggs said, Woolworths had created 500 jobs.
Product selection is based on three elements: skin type, skin colour, and skin concern. The products also cater to younger shoppers interested in skincare to treat breakouts and to older customers looking for high-coverage make-up.
When it comes to popular items in stores, Maggs said Glow Toner was a standout product. “In fact, Woolworths sells a Glow Toner every four minutes! The success of our Glow Toner led to the expansion of the range.”
It introduced a number of products including Glow Mist and Glow Concentrate, Glow Intensive Skin Body Balm. Another popular item is the versatile All Over Face Multi Stick that can be used on lips, cheeks and eyes, and the rise of niche fragrances. “Our customers are beginning to look beyond the popular brands, and instead they’re shopping for unique, one-of-a-kind scents.”
She said African beauty products were also in their sights as they were becoming a trend. “African beauty is fast becoming a trend in its own right. Indigenous ingredients like baobab seed oil, honeybush extract, Kalahari melon seed oil and kraalbos extract are firmly on our radar.”
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