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Despite being a well-established retailer in its market, ethical beauty brand Lush has used product innovation, such as its charcoal collection, to attract a new demographic to its stores. In April, the ethical beauty brand announced UK sales had risen 13.0% for FY2016/17, outperforming the UK health & beauty market that grew 2.9% in 2017.

While attracting new customers is essential to expand its reach, Lush has also been successful in retaining its core customer – females aged 16-24. Lush’s iconic bath bombs are its standout products that appeal to millennial shoppers, generating a cult following that has helped establish its reputation in the beauty market as a fun and unique retailer. This, alongside its extensive range of exclusive products, has allowed Lush to differentiate itself from market leaders such as Boots and Superdrug.

Source: GlobalData Retail’s How Britain shops survey of 10,000 respondents for 2017 & 2018

Customer loyalty has ensured that it has also retained its customers as they have grown up, with 25-34s accounting for 27% of Lush shoppers in 2018. Lush has also encouraged new consumers in this age group through its new cult products that are often featured in the press, highlighting that Lush is at the forefront of innovation and that it can adapt to the latest trends to widen its appeal to beauty-product enthusiasts.

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By GlobalData

In 2017, Lush’s Twilight body spray made headlines after insomniacs claimed it had sleep-inducing power. In addition, Lush recently expanded into charcoal products, a popular trend from 2017 that has continued into this year, offering tooth tabs and facemasks. Its own take on this trend will ensure that its creative and exclusive ranges drive revenue in 2018. Moreover, the retailer has recently expanded its instore spa proposition, merging leisure and retail in its stores. Lush’s spas offer a variety of services such as a ‘Validation facial’ and ensure the brand has greater appeal to shoppers looking for more than its traditional bath products.

Lush has also widened its reach to older consumers, with a larger proportion of 55+ shoppers purchasing from Lush. This comes as more of its products are perceived to have health benefits, attracting shoppers who would not normally consider shopping at Lush. For example, customers have claimed its Dream Cream alleviates skin conditions such as eczema, driving a surge in sales of the product this year and leaving the retailer with stock shortages across its store estate.

For more insight and data, visit the GlobalData Report Store – Verdict Retail is part of GlobalData Plc.