Woolworths Group is hoping that its knowledge and expertise in digital platforms can help resurrect health and wellness brand Healthy Life. After quietly acquiring the Healthy Life business in 2019, following the closure of all stores, Woolworths has focused on reviving the business with an unparalleled digital offering. The new online health and wellness destination, known as HealthyLife, will sell vitamins, sports nutrition products and a specialised range of natural and organic goods no
ods not currently offered by Woolworths. It will also offer a range of services and advice, as well as fitness and nutrition tracking.
“We do the research, work with trusted experts, partner with health services, source the right products, and access the best offers to give you the clear space to find your healthy – whatever that may be,” the HealthyLife LinkedIn page reads.
Despite launching an e-commerce site and new look stores in mid-2018, the Healthy Life franchise struggled to make an impact on consumers. Less than a year later, Healthy Life teamed up with health food store group, Go Vita, on co-branded stores in a last ditch attempt to save the business. But later that year, the business eventually admitted defeat and closed all stores, before being bought by Woolworths Group.
According to Woolworths Group CEO Brad Banducci the company is making big strides in the health space and has an important role to play in making health products more accessible.
“Over the last year alone we’ve seen an 80 per cent increase in digital traffic on health-related searches across a range of categories on Woolworths Group digital platforms,” he said in a statement.
“To address this growing customer demand, we’re working hard to improve our product range in our store. Additionally, we’re establishing HealthyLife online to ensure we provide our customers with a convenient destination to meet their health and wellness needs.”
The health brand will be ingrained into the wider Woolworths business, with plans for a select range of HealthyLife products to be offered on the highly anticipated Woolworths marketplace.
Ananth Sarathy, the former general manager of digital experience at WooliesX, will lead the HealthyLife business as managing director. Sarathy has held a number of other leadership roles in digital within the Woolworths Group over the last eight years, including as general manager of loyalty and data solutions.
Booming market
Jana Bowden, an expert in consumer psychology and consumer engagement at Macquarie University Business School, told Inside Retail that now, more than ever, there is a demand for health and wellness products.
“Public health became the primary concern during 2020 and remains in 2021 … Commonwealth Bank’s new data indicates that there has been a very significant impact on consumer health – 47 per cent of consumers feel that the pandemic has negatively impacted their mental health and 36 per cent feel that their physical health has also been affected,” Bowden said.
“In addition 22 per cent of consumers said that they embarked on a healthier lifestyle in 2021, and 69 per cent of consumers have said that they will continue with the healthy lifestyle habits that they adopted in 2020 such as focusing on an improved diet, and moving more.”
Bowden believes this shift in consumer values provides a major opportunity for brands to capitalise on the “health and vitality b(r)andwagon” and predicts those that differentiate their offer will be successful.
“Consumers have always had a need for health products but the market has been cluttered and has lacked differentiation. The difference now is that consumer values have really shifted. The health and wellbeing market is worth $10 billion and it’s growing,” she said.
She believes consumers are looking for holistic lifestyle solutions, rather than disparate products, and sees brands positioning themselves as “lifestyle partners” that offer advice on health, wellbeing, nutrition, fitness and living well.
“Woolworths is tapping into that value shift and it’s working to integrate itself into its consumers’ lives. It’s embedding itself into their health and wellness goals by offering to support them on their learning (and consumption) journey. It’s making itself indispensable as a health partner,” she said.
While HealthyLife is still in the early stages of development, Woolworths said that the full details of the customer offering will be unveiled in the coming months.