Health and personal care stores
Total Sector Spending
Overall spending trends across an industry sector
What's the story behind the data?
Spending in health and personal care stores has shown steady demand, with fluctuations driven by seasonal and behavioral health triggers. Gen X and upper-income households show the strongest share of wallet in this sector, suggesting more routine or chronic health spend. Top brands span retail pharmacies and specialty beauty/health categories, with noticeable AOV and share divergence. These patterns align with seasonal themes—such as wellness resolutions in January and allergy spikes in April—as confirmed in CDC wellness reports and recent earnings calls from Walgreens and Ulta.
Implications by Audience
FP&A / Strategy Teams
- Budget for seasonal spikes in January and April—these correlate with resolution season and allergy upticks, supported by observed Facteus data and CDC health trend seasonality.
- Lean into AOV leaders like Sephora and Ulta—these brands signal premium bundling and add-on behavior. Ulta’s Q1 earnings attributed strong sales to bundling of skincare and wellness SKUs.
- Use demographic targeting to forecast demand: Gen X and $100K+ income households are consistent drivers of recurring health/wellness spend. CVS reported stronger sales from higher-income loyalty segments.
Marketing and Brand Teams
- Prioritize Gen X in creative and media planning—they drive the highest spend and are aligned with habitual health and wellness needs.
- Test loyalty and bundling strategies with Ulta and Sephora shoppers—these shoppers exhibit higher AOV and brand affinity. Ulta’s recent investor commentary noted successful skin care bundles as a growth lever.
- Consider repositioning vs. retail giants: CVS and Walgreens have scale but lower AOV. Messages emphasizing value-per-trip or personalized health journeys could appeal to high-intent segments.
Investors
- This is a resilient, defensive category showing seasonal elasticity—supporting a diversified retail thesis.
- PBM players (e.g., OptumRx, Express Scripts) reflect stable recurring fills, aligning with macro trends toward prescription adherence.
- Premium brands like Sephora and Ulta highlight AOV upside potential; both brands beat Q1 earnings expectations and cited health-adjacent purchases as a key contributor.
Policy Makers
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Top Brands by Market Share
Leading brands ranked by market share within sector
Trends + Insights
- Total Sector Spending
Spend trends show consistent seasonal peaks—particularly in January and April. This coincides with new year wellness resolutions and allergy cycles. Ulta earnings calls and CDC seasonal health advisories confirm elevated consumer engagement around these months.
- Sector Spending by Income
Higher-income households ($100K+) consistently allocate more of their wallet (~4%) to this sector than lower-income households (<3%). This suggests a bifurcation between essential health spend and elective wellness/lifestyle purchases. CVS and Walgreens earnings have highlighted a similar shift, noting stronger same-store sales in affluent ZIP codes.
- Sector Spending by Generation
Gen X drives the largest share of spend (6%+), ahead of Millennials and far above Boomers. This likely reflects their dual role in household/family care and personal wellness routines. Internal trends reported by Sephora and Ulta corroborate this Gen X preference for bundled skincare and wellness products.
- Top Brands by Market Share
CVS (40%) and Walgreens (30%) dominate by transaction volume, but this obscures emerging growth from niche players like Ulta and Sephora. Notably, OptumRx and Express Scripts retain durable share through recurring prescription behavior. Walgreens earnings revealed stagnating traffic but better revenue per visit—due in part to diversified health SKU expansion.
- Top Brands by AOV
Sephora stands out with AOV over $80, followed by Ulta and OptumRx. In contrast, legacy chains (CVS, Walgreens) hover near $25–$30. This AOV gap highlights different shopper intent—convenience versus curated purchase. Ulta attributed AOV growth to strategic bundling of skin care and wellness-adjacent beauty products.
Top Brands by AOV
Leading brands ranked by average order value within sector
This macro sector analysis provides detailed insights into economic trends and consumer behavior patterns. The visualizations below are derived from real-world transaction data and economic indicators.
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Sector Spending by Income Bracket
Industry sector spending patterns by household income level
Sector Spending by Generation
Industry sector spending patterns by generational cohort
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