Retailers and brands face a fundamental mismatch between what consumers want and what executives are willing to deliver. A new study from consulting firm AlixPartners found that nearly 100% of consumers surveyed treat beauty, health, and wellness as one shared budget category, yet 42% of executives said they want their companies to stay in their traditional lane. That disconnect is reshaping how retailers stock shelves and which companies will thrive in a market where consumers increasingly demand integrated solutions.
The convergence reflects a shift in consumer behavior driven by science-backed shopping and product education. Consumers now compare a night cream against a personal trainer or supplement with the same decision-making framework. As wellness becomes mainstream, 40% of consumers surveyed said they want traditional beauty companies to expand into health and wellness products. That demand is forcing major retailers to rethink their store layouts, product assortments, and customer service approach.
Executives are moving slower than the market requires. According to the AlixPartners study, which sampled 1,000 consumers and 127 executives across beauty, health, and wellness industries, the hesitation stems from real business fears. Research and development timelines are long. Consumer profiling is expensive. Quarterly earnings pressure discourages big bets that may not pay off immediately. “Companies are not willing to look outside of themselves in order to see that broader beauty, health and wellness bucket, which is the exact opposite of consumers,” said Lindy Firstenberg, co-lead of AlixPartners’ beauty, health and wellness practice.
Major retailers are pursuing three main strategies. Some are building partnerships across sectors. In 2022, luxury brand Gucci partnered with wearable fitness tracker brand Oura on a specially designed ring. Last month, consumer packaged goods company Procter & Gamble agreed to acquire supplements brand Thorne for $3.8 billion to grow its health business.
Others are reshaping store displays to highlight connections between categories. Ulta Beauty launched in-store wellness boutiques featuring supplements, skin serums, and hair products. Sephora created a dedicated wellness and skincare section on its website. Target launched the Target Beauty Studio on September 10 after phasing out its Ulta partnership. Walmart has been investing in varied product assortments and placing beauty products in high-traffic areas during store remodels.
Walmart is also leveraging its unique advantage as an omnichannel retailer with pharmacists on staff. The company stocks mini and single-serve products to help customers explore and trial offerings before committing to full sizes. “We’re very intentional about creating this exploration, discovery and navigation in-store and online,” said Silvia Kawas, who leads consumables for Walmart U.S. The company has seen customers build larger baskets as a result of improved assortments and accessibility.
Even as inflation and economic uncertainty squeeze household budgets, consumers prioritize beauty, health, and wellness purchases over other categories. According to Boston Consulting Group’s Pierre Dupreelle, consumers are more likely to cut spending on groceries or entertainment than to reduce their health and wellness budget. This resilience has already shown in sales data. The skincare industry grew 8% in the first half of 2026, benefiting from consumers’ interest in whole-body wellness.
The winners in this landscape are brands with science-backed credentials and efficacy claims. Doctor-endorsed and dermatologist-backed products are gaining share, while traditional sensible skincare brands struggle even at premium price points. The rise of GLP-1 drugs, medications increasingly used for weight management and metabolic health, is accelerating the intersection of health, beauty, and consumer behavior. Brands that combine real results with transparent science are capturing the growth, while those relying on legacy positioning fall behind.
The AlixPartners survey reveals a critical gap between consumer expectations and corporate strategy. Consumers view the category holistically and expect brands to meet them there. Many executives, however, fear the costs and complexity of expansion. That hesitation could leave opportunities for more nimble competitors willing to cross traditional category lines and invest in research, product development, and consumer education.
For retailers like Walmart, the advantage lies in affordability, access, and the ability to personalize offerings. For traditional beauty and health brands, the challenge is clear: expand or lose market share to companies building integrated solutions. The consumer has already chosen the playbook. The question now is whether incumbents will follow.
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