Mineral-based makeup. Cosmeceuticals. The latest celebrity fragrance launch. Today’s beauty departments are stocked with more products than ever to lift, tighten, brighten, diminish and redefine.
Specialty and department stores have traditionally reigned over the beauty sector, offering a selective range of high-end prestige brands with knowledgeable sales staff to assist in making the sale. But more and more retail sectors are trying to get a piece of this $42 billion dollar industry. Mass merchants are devoting more aisle space to makeup and body products, including Target, which is stocking up to
8 feet of organic and natural care products in all of its stores. Wal-Mart remains competitive with its low-price, no-frills strategy, while testing in-line open fragrance displays at some of its newer stores and stocking miniature shopping baskets designed for smaller items, such as lipstick and eyeliner.
National supermarket and drugstore chains, such as CVS and Walgreens, have carved out a bigger stake in the industry by presenting more prestigious brands on their shelves. CVS’ newest Manhattan flagship, at 42nd Street and 3rd Avenue, features a European-style high-end beauty boutique called Healthy Skincare Center.
And, of course, there’s Sephora, the cosmetic retailing giant out of France that popularized the open-sell, tester-friendly environment.
With a retail landscape that’s evolving as much and as often as the latest wrinkle-fighting technology, how are retailers staying competitive? “We’re trying to make the experience more sophisticated with more surprises so the customer comes to us to see what’s new,” says Sharon Lessard, vp, visual marketing, Bath & Body Works, the New Albany, Ohio-based skin and bodycare retailer. “Our goal is to meet her wants, not her needs.”
21st Century Beauty Queens
Sephora began addressing those desires a decade ago by inviting women of all ages to come inside and play for hours with its more than 250 color, skincare, fragrance, makeup, bath and haircare brands. “Sephora proved that women have an innate desire to test so they can know the benefit of something before they buy it,” says Lessard.
Even if she likes to play, retailers know today’s beauty-seeking woman is also on a schedule. So they’ve focused on quick, easy beauty products and convenient environments in which to shop. Testers, products arranged clearly by brands and more open shelves for assisted self-serve can be seen on the sales floors from Macy’s to Walgreens.
The Sephora model has even influenced the luxury prestige world, which has always favored more counter-based interactions. “There are some self-serve components in luxury for trend quick-pick items,” says Jackie Charest, director of marketing, cosmetics and beauty services for Canadian fashion retailer Holt Renfrew. “But luxury is built on customer service, so there will always be that element.”
While retailers continue focusing on this time-crunched woman, there’s a new shopper who’s also waiting to be served. “The younger generation has so much access to information that it knows the trends and expects you to have the latest products,” says Lessard.
This young woman is also less likely to stick with just one brand of beauty products, which influences retailers’ visual displays. “Shoppers now pick and choose the best of the best from all the lines,” says Jadz Kuta, Neiman Marcus’ vp, visual planning and presentation. So the Dallas-based luxury retailer presents featured items or collections from different vendors on a weekly basis as a “quick snapshot of offerings for our clients.”
Bath & Body Works appeals to women of different generations by focusing on newness. “You have to give her something to come in for,” says Lessard. So every three to four weeks, the beauty retailer changes out the windows and front-of-store displays at its 1600-plus stores. “Color, visuals and images trigger the different look,” she says, “and change the experience.”
Fresh Appeal
Others offer change in the form of new and exclusive creams, tonics, shades and lipstick lines that make their stores a destination for the latest beauty aids. CVS signed a deal with Finnish beauty line Lumene to be the brand’s exclusive retailer in the U.S. The line is merchandised on a custom endcap or backlit, 7-foot-long wall displays within the beauty department.
J.C. Penney has introduced Sephora counters into its department stores, an effort that appeals to shoppers younger than the traditional Penney’s demographic. And Macy’s is the U.S. distributor for Lush, the Canadian-based handmade soaps and natural cosmetics brand.
In addition to these new and exclusive products, beauty retailers are also going beyond the traditional product launch or promotional gift-with-purchase to deliver new services and shopping incentives.
Holt Renfrew has introduced personal beauty shoppers at its Bloor Street flagship in Toronto. Much like a wardrobe consultant, these brand-neutral beauty experts meet one-on-one with a customer to help edit and guide her to find the right products based on her skin type, lifestyle or desire.
Holt’s also offering more in-store events located off the sales floor. There, a product specialist meets with a group of 15 to 20 women for an interactive session on a specific topic. “Customers participate and leave armed with more in-depth knowledge or application of a product,” says Charest. The event reservation fee is 100 percent redeemable toward merchandise.
Facing the Future
While many retail sectors are facing uncertain times with the current economic state, beauty retailers are confident they’re still sitting pretty. A widely held belief, called the lipstick indicator, says that when times get tough, cosmetic sales thrive as women seek comfort in feel-good items.
“Women will always make their cosmetics needs a priority,” says Neiman Marcus’ Kuta. “I know I won’t go anywhere without my favorite lip color or fragrance.”
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