Report Summary

Period covered: 02 February – 01 March 2025

3 minute read

Note: This report summary is one or two months behind the current month as standard reporting practice. The content is indicative only and incomplete with certain data undisclosed. Become a member to access this data or take out a free 30 day membership trial now.

Health and Beauty sales

Health & Beauty sales rose by xx% YoY in February, compared to xx% growth in February 2024, according to the Retail Economics Retail Sales Index (value, non-seasonally adjusted).

Homewares and electricals both saw higher rates of growth than the Health & Beauty sector in February, with product innovation helping to drive sales in these categories.

Sales drivers

Several key factors influenced this performance:

Half term holidays(+/-): The half term holiday in mid-to-late February had mixed effects. Family-oriented retailers reported a slightly uptick in footfall as families visited shopping centers during the break, but retailers competed with the leisure and entertainment sectors for spend.

Dreary weather: February’s weather was cold and dreary, contributing to shoppers staying at home and to footfall falling xx% across the month.

Inreased spend outside of retail: Digital content and subscription spending increased by xx% as shoppers stayed home, according to Barclaycard, marking two years of consecutive growth for the category. Meanwhile spending on airlines increased xx% as shoppers booked holidays, and travel agent spend grew xx%.

Valentine’s Day boost: Fragrances and beauty products experienced a notable uplift over Valentine’s Day, driven by gifting trends as more shoppers turned to Health and Beauty products.

It was a particularly strong Valentine’s Day for the sector in 2025, as Shopify data revealed perfume and makeup surpassed wine and chocolate as the UK’s most popular Valentine’s gifts.

Shopify reported that lip balm sales surged xx% from January, while perfume rose xx%. The trend reflects a shift towards beauty and non-perishable gifts, with houseplants and DIY kits also gaining popularity.

The Perfume Shop sold xx bottles in the two weeks to 14 February, with retail sales up xx% YoY and gift set sales soaring xx%. Online sales peaked on 12 February, while personalised services saw high demand. Lancome La Vie Est Belle and Dior Sauvage were the best-selling fragrances.

Outlook  

Headline inflation fell to xx% in February, down from xx% in January, slightly below expectations, driven by discounting in women’s clothing and slower price growth in housing and cultural services. CPI inflation is expected to peak at xx% in Q3 2025 due to increased global energy costs before falling back to its xx% target.

The Bank of England cut rates from xx% to xx% in February, before holding them in March. Markets now predict a xx% chance of a May rate cut.

Both the BoE and the Office for Budget Responsibility cut their UK 2025 growth forecasts from xx% to xx%, and from xx% to xx%, respectively.

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Inflation rose by 2.8% in February