BW Confidential - Issue #3 - September 2010 - (Page 50)

Market watch: US Emerging retail channels What’s the alternative? A review of beauty retail in the US outside the department store Sephora After a shaky start in the US, Sephora is now taking the market by storm. The pioneer of US beauty chains, Sephora operates more than 270 stores in North America, and is slated to open 100 stores worldwide this year. Sephora also has an exclusive deal with department-store retailer JC Penney, which is said to be performing very well. It operates 215 boutiques in JC Penney outlets and plans to add 15 more this year. The retailer has become known as the destination for trendy make-up and skincare products and its open-sell concept appeals to consumers who want to shop on their own. Ulta Ulta broke industry codes by combining prestige, mass, salon products and salon services under one roof. The retailer operates 347 stores in 38 states, and plans to open 46 new stores in fiscal 2010. Ulta prides itself for offering “the product breadth, value and convenience of a beauty superstore with the distinctive environment and experience of a specialty retailer.” CVS Beauty 360 Drugstore CVS launched the Beauty 360 concept in 2008 to provide prestige and niche brands in an accessible environment and deliver an elevated level of service. Some prestige players were initially reticent about moving into a drugstore format, but the “separate area” for the concept (the area is adjacent to the stores, often linked by a breezeway) combined with the service element has won many vendors over. Beauty 360 now offers more than 100 prestige and niche brands including Giorgio Armani, Cargo, Burberry and Zirh. Services include complimentary hand massage, “quick make-up application” and express facials with one skincare purchase. There are currently 24 CVS stores operating the Beauty 360 format. CVS also launched an e-commerce website for Beauty 360 in January this year. 50 September 2010 - N°3 - BW Confidential

Table of Contents for the Digital Edition of BW Confidential - Issue #3 - September 2010

Cover
Contents
Comment
Update
- Brand & retail news recap
- Digital digest
- Companies on the move
Take note
- Market facts, figures & trends
Best of BW
- Highlights from our e-publication
Launches
- The latest in fragrance, skincare & make-up
Interview
- O Boticário president Artur Grynbaum
Insight: luxury
- Category overview
- Pricing
- The internet
- Return to quality
Wellness
- The spa consumer
- Spa case studies
Retail
- New store concepts
Travel retail
- Inflight sales
Market watch: US
- Country overview
- Industry roundtable
- Retailing analysis
- Emerging retail channels
Radar
- Six up-and-coming beauty brands
Packaging trends
- Make-up innovations
Last word
- Inspiration&Creation founder Leïla Rochet-Podvin

BW Confidential - Issue #3 - September 2010