18/08/2026
Is the beauty industry in a constant promotion trap?
A recent Reuters report highlighted a challenge that many beauty retailers may recognize: one of the sector's leading players increased sales by more than 1.5% year-on-year, while EBITDA declined by more than 5%, as consumers became more price-sensitive and the market became increasingly promotion-driven.
(https://www.reuters.com/business/beauty-retailer-douglas-reports-drop-first-quarter-core-profit-2026-02-11/)
This raises an important question:
How do you keep customers coming back without constantly lowering prices?
Promotions can help drive demand in the short term. But over time, they can put increasing pressure on margins and train customers to wait for the next discount. The challenge for beauty retailers is no longer just generating sales. It's maintaining demand without eroding profitability.
Among our beauty retail clients, we see that loyalty strategies powered by customer behaviour and personalisation can transition business from relying on discounts to protect margin with incentives that realy resonate with specific customer segments at the right time.