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The rise of physical retail in the Beauty, Health & Wellness sector

The rise of physical retail in the Beauty, Health & Wellness sector
March 24, 2025

The rise of physical retail in the Beauty, Health & Wellness sector

The physical retail sector is undergoing a significant transformation, driven by the growth of the beauty, health and wellness market. Although online commerce remains essential, brands are increasingly investing in physical spaces to enrich the customer experience and strengthen their position in the market.

Key growth drivers in the sector

Several elements contribute to this dynamic:

1. Increased awareness of holistic well-being

Consumers are now taking a holistic approach to well-being, integrating skin care, self-care, relaxation and sport. This trend, reinforced by the pandemic, highlights the importance of taking care of oneself. This is evidenced by consumers' growing interest in well-being, beauty, sport and health.

2. Influence of social media and TikTok

Platforms such as TikTok play a decisive role in the dissemination of beauty and wellness trends. Content related to skincare and wellness accumulates billions of views, directly influencing purchasing behaviour and encouraging consumers to discover new products and routines.

3. Demand for transparent and sustainable products

Innovation in products and services, such as organic cosmetics and personalised care, is booming. Consumers demand natural, ethical and environmentally friendly products. This expectation translates into a preference for zero-waste shops and brands that promote ‘clean beauty’, offering transparent compositions and personalised advice in-store.

The importance of in-store retailers

In a market where online competition is fierce, it is becoming essential for brands to differentiate themselves by offering real added value through their physical shops.

While digital technology facilitates access to a multitude of products, it cannot compete with the sensory and human experience of the shop. Testing a perfume, trying out a treatment or benefiting from expert advice are all elements that enrich the shopping experience and build customer loyalty. A recent RetailNext study revealed that 69% of 18-24 year olds (Generation Z) make their purchases in physical stores every week, proving that physical retail remains a key player in the customer journey.

Faced with the growing demand for in-store experiences, retailers need to adapt their offering by integrating immersive and interactive concepts, thus redefining the role of physical spaces.

This also implies a transformation of points of sale: brands are looking for specific layouts to offer a unique customer experience, focusing on design, well-being and sensory immersion. Flexibility is also becoming a key criterion for brands, as we can see with pop-up stores that favour short-term leases and modular spaces in order to adapt to rapid market changes. Hybrid concepts are also emerging, combining product sales, care services and community spaces dedicated to well-being, thus enhancing the attractiveness of the store.

Retailers actively investing in physical commerce

  • Medi-Market is a chain of parapharmacies offering a wide range of health and wellness products at affordable prices, with in-store advice.
  • Aesop appeals with the immersive design of its boutiques, a minimalist approach and customer service focused on expertise and customisation.
  • Aroma-Zone specialises in natural and homemade cosmetics, focusing on transparent ingredients and personalised advice in-store.
  • Lush is a committed brand offering handmade products with natural ingredients, and a strong customer interaction in-store with various workshops to test the products. -Rituals is a store that offers a range of beauty and wellness products, from body care and home fragrances to natural skin care, all in a relaxing environment.
  • Ici Paris XL offers a wide selection of luxury products, with an emphasis on beauty advice and customer loyalty.
  • Kruidvat is a chain of drugstores combining beauty products, care and well-being at attractive prices, with a strong presence in city centres.
  • Animo, Aspria are upmarket club chains combining fitness, spa and wellness centres, illustrating the evolution of this trend towards self-care and community involvement.

Conclusion

The Beauty, Health & Wellness sector is redefining the physical retail landscape, influenced by social networks and a growing quest for immersive experiences. At a time when online competition is fiercer than ever, physical stores are positioning themselves as strategic levers to offer added value to consumers. This transformation represents a real opportunity for retailers, who are looking for spaces that can adapt to new market expectations. CBRE is closely monitoring this evolution and supporting players in the sector through this transition.

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