Home Headlines Stage set for bigger beauty sales at Target, Kohl’s #englishheadline #Stage #set #bigger #beauty #sales #Target #Kohls

Stage set for bigger beauty sales at Target, Kohl’s #englishheadline #Stage #set #bigger #beauty #sales #Target #Kohls

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A Sephora shop inside a Kohl’s store, and an Ulta Beauty shop inside a Target store.

Source: Kohl’s; Target

Beauty is always a big holiday category, but this year it’s poised to be even bigger.

Shoppers aren’t just looking for perfumes or candles to give to family and friends. They are eager to replenish makeup bags, refresh routines and buy new lipsticks to don at parties.

Consumers are also heading back to stores in larger numbers — a shift that could lift sales in a category that’s driven by in-person experiences. A trip to a beauty store offers the chance to try out an item before purchasing, talk to an expert or grab stocking stuffers and impulse buys after seeing colorful displays.

That is playing out at Target and Kohl’s stores, which will mark the first holiday season with a stepped-up focus and more square footage dedicated to lipstick, perfume, gift sets and more. Target has opened about 100 mini Ulta Beauty shops inside of its stores. Kohl’s has debuted about 200 Sephora locations. And more are coming soon.

At stake is a bigger slice of the beauty industry, as consumers turn to websites, big-box stores and specialty beauty shops for cosmetics instead of relying just on drugstores or department store beauty counters. Both off-mall retailers see the premium beauty shops as a way to drive more foot traffic, inspire impulse purchases and ultimately, boost sales across other departments. It’s also a chance for Target and Kohl’s to welcome back shoppers who might not have stepped foot in one since March 2020.

Ulta Chief Operating Officer Kecia Steelman said she expects sales this holiday season will reflect people’s desire to splurge on themselves and others and to get “glammed up more,” too. She said the beauty retailer made heavier buys of holiday-themed gift sets compared with last year.

“As we’re coming through this pandemic, people that are holed up are ready to get out and celebrate —celebrate for themselves and each other,” she said in an interview.

Beauty tends to see an uptick in sales around the holidays because it offers such giftable options with easy-to-buy sets, said Olivia Tong, a managing director of equity research at Raymond James focused on the beauty and personal care sectors.

Plus, as more families and friends gather over the holidays this year, she said, some people may invest a little more in getting ready — perhaps by springing for new eyeshadow, blush or a fragrance to spritz.

“In some cases, you might not have seen these people for a while,” Tong said. “And maybe you put in that extra little effort with respect to appearances.” 

Shoppers sit outside a Sephora store with holiday shopping bags in Las Vegas, Nevada, on Sunday, Nov. 7, 2021.

Bridget Bennett | Bloomberg | Getty Images

Target’s and Kohl’s strategies to lure in customers with beauty offerings.

open a total of 800 shops over the next few years.

Beauty was one of the retailer’s top sales drivers in the third quarter. Sales in the category grew in the mid-teens compared with the year-ago period, along with similar growth in Target’s food and beverage and essentials categories. The beauty category isn’t limited to the partnership. It spans price points and various brands from mass market to prestige.

Each Ulta shop within Target is about 1,000 square feet — roughly one-tenth the size of a typical Ulta store. It carries a curated selection about 50 premium brands, such as Smashbox, MAC and Tarte. The shop is staffed by Target employees trained by Ulta. For the holidays, the stores and website are carrying special gift sets like items for a spa day at home or a set of mini hair products.

Hennington said the beauty shops add vibrancy to the big-box stores, as well, by making them places where shoppers can smell a fragrance, feel a lotion on their hands or get help from a beauty advisor who suggests a foundation or offers other expertise.

In an interview, Hennington said the retailer stands out with its beauty and personal care assortment, which ranges from everyday items to high-end ones.

“If you think about everything, from body wash to deodorant, to a fragrance you might want for a special date night to everything in between, we have an opportunity to engage with so many guests because of the relevance and breadth of a category like beauty,” she said.

Plus, she said, shoppers can now buy even more items with a single stop at Target — like a lip gloss along with a new outfit, party appetizer or gallon of milk.

Target is investing in the category because “beauty sits at the center of style and frequency,” Hennington said.

For Ulta, Steelman said the shops at Target are a way get in front of new customers, give them a chance to sample Ulta’s merchandise and encourage them to sign up for its loyalty program. Target shoppers who buy from the shop can earn loyalty points to use at Ulta’s stores.

“It’s a win for the consumer, because we’re meeting them where they are,” she said. “It’s a win for Target, because they have access to the prestige beauty brands that they did not have before. It’s a win to the brand partners because they’re getting a greater reach with a consumer in a branded way. And it’s a win for Ulta Beauty because it’s about building our member loyalty based program and getting them into our complete ecosystem.”

As department stores have lost relevance with some beauty shoppers and got battered by temporary closures during the pandemic, it has created an opening for Target and Kohl’s and specialty beauty brands to gain market share, Tong said.

“People have clearly not gone back to the department stores to the same extent that they had in the past,” she said. “There’s a lot more availability of different formats to purchase [makeup]. And that continues to dig into department stores. … It’s not just Macy’s and Bloomingdale’s or Nordstrom anymore.” 



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#Stage #set #bigger #beauty #sales #Target #Kohls

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