Manchester-based online retailer Beauty Bay is considering following in the footsteps of The Hut Group with a stock market float.

Beauty Bay has drafted in investment bank GCA Altium to work on a review of its strategic options, which may include a stock market debut next year, according to Sky News.

The online beauty marketplace, which describes itself as one of Europe’s leading online beauty platforms, was founded by brothers Arron and David Gabbie 20 years ago.

The Manchester-based beauty etailer has reported a surge in sales of over 50% to more than £120m on an annualised basis since the start of the coronavirus pandemic and is exploring ways to monopolise on this momentum.

City sources told Sky News that a flotation was a likely route for Beauty Bay following the success of The Hut Group’s stock market debut, but other options including an outright sale were also being considered. 

If a float were to take place it would likely be made in the second half of next year.

Beauty Bay sells products across makeup, skincare and wellness categories and sources hard-to-find brands such as Anastasia Beverly Hills and The Ordinary.