The US health and beauty market is entering a new phase of competitiveness. Leading retailers are reshaping their propositions to meet rising expectations around value, experience and credibility.  

Recent developments at Walmart, Target and Kroger show how quickly the landscape is shifting. With upgraded environments, more curated assortments and stronger integration of wellness, US retailers are redefining what accessible health and beauty looks like.  

These moves offer clear lessons and opportunities for global retailers navigating similar pressures around differentiation, shopper loyalty and category growth. 

Beauty is becoming a core driver of traffic and loyalty 

Beauty continues to outperform other discretionary categories in the US, with both Walmart and Target reporting strong engagement in Q1 2026. Growth is being fuelled by expanded ranges, accessible price points, clearer segmentation and a sharper focus on trend‑led brands that resonate with younger and digitally influenced shoppers. 

This shift reflects a broader strategic pivot. Health and beauty is now treated as a lever for frequency, margin and brand equity. Retailers are investing in more consistent execution across stores and improved navigation to convert routine trips into health and beauty purchases. For global retailers, investing in elevating the health and beauty category can unlock meaningful commercial impact. 

Upgraded physical environments are raising the bar for experience 

Kroger’s rollout of dedicated beauty zones signals a step change in how retailers approach in‑store experience. The zones are around 2,700 sq ft with improved lighting, lower fixtures and clearer merchandising. Kroger plans to roll these out to 30 stores by the end of 2026 and a further 20 stores in 2027. These spaces are designed to encourage browsing and discovery, moving away from traditional aisle‑based layouts that limit engagement.  

Target is also launching Target Beauty Studio in more than 600 stores and online. The new space will sit within its beauty department and is designed to spotlight premium brands through more curated displays, clearer trend‑led navigation and elevated fixtures. It will feature over 60 new‑to‑Target prestige and emerging brands across skincare, haircare, fragrance and cosmetics, supported by dedicated beauty team members. The retailer will focus on a more seamless store‑to‑digital experience and beauty-specific target Circle rewards. This rollout forms part of Target’s wider turnaround strategy, which includes strengthening its position as a destination for everyday wellbeing. Target has already expanded its wellness assortment by 30%. 

By creating more intuitive environments, US retailers are strengthening shopper confidence in its existing assortment and driving conversion from trips already happening in-store. For global retailers, even small upgrades to layout, lighting and adjacencies can materially improve perception and dwell time, particularly in markets where health and beauty is still treated functionally. 

Curated, trend‑led assortments are reshaping expectations 

US retailers are responding to faster trend cycles and more globalised health and beauty influence. Kroger’s recent additions, including Beauty of Joseon and Skin1004 and Fine’ry, reflect growing demand for K‑beauty, dermatological skincare and accessible fragrance. These brands bring cultural relevance and social‑media‑driven appeal into mass retail environments. 

Target and Walmart also continue to expand dermatologist‑backed skincare and accessible prestige. This reinforces the expectation that grocery retailers should offer both value and innovation. For global retailers, assortment strategies should be dynamic and culturally attuned. Shoppers increasingly expect retailers to reflect global beauty movements, and they reward those who do with higher basket spend and stronger loyalty. 

Convenience and credibility are driving conversion 

A consistent theme across US retail is the blending of convenience with authority. Retailers are making beauty easier to navigate while strengthening cues around expertise. This includes clearer signage, improved adjacencies and integrated wellness propositions. 

Walmart is strengthening credibility through people. It has expanded its new specialised beauty store associate role, trained to support shoppers with product knowledge and personalised guidance, to 425 stores, signalling a major investment in service‑led beauty support across its estate. This move reflects rising shopper demand for trusted advice, especially in skincare and wellness‑linked categories. 

For global retailers, the opportunity lies in designing propositions that feel both easy and expert. Convenience alone is no longer enough, with shoppers wanting credible solutions delivered within familiar, accessible environments. 

US grocery retailers are setting a new benchmark for health and beauty 

The US market shows how quickly health and beauty expectations are evolving and how grocery retailers can respond with pace and innovation. By elevating store environments, curating trend‑led assortments and treating beauty as a strategic growth driver, US retailers are redefining the standard for experience, credibility and conversion. 

For global retailers, the opportunity is to adapt these principles to local shopper needs by building clearer beauty destinations, strengthening discovery, integrating wellness and ensuring assortments reflect cultural and category trends. Those who do will be best positioned to compete in an increasingly dynamic and fast‑moving health and beauty landscape.