Department stores, once a principal sales channel for high-end beauty products, have had their market share eroded by new players. It’s a trend that began well before the pandemic, and it’s shifted into higher gear since.
These retailers are repositioning themselves accordingly. Kohl’s has made the most radical change by replacing store beauty departments with Sephora shop-in-shops, and it’s on track to have at least 850 in place by 2023, covering roughly three-quarters of its store count.
Others are exploring new paths for growth on the ecommerce front. In 2021, both Macy’s and Saks (the newly spun-off ecommerce unit of Saks Fifth Avenue) announced plans to launch online marketplaces to generate revenues while expanding the depth of their product offerings.