Target has struck a deal with Alta Beauty to open stores within makeup, skincare, hair products and more of its hundreds of stores.
Source: Alta Beauty
Target and Alta Beauty announced deals on Tuesday to open makeup and skincare shops inside hundreds of Target stores across the country.
Target CEO Brian Cornell said that starting in the second half of next year, shoppers will find more than 100 stores of Target and a smaller version of Alta Store on its website.
Each “shop-in-shop” will be approximately 1000 square feet with a rotating assortment of products from more than 40 beauty brands and fragrances from hair care and wrap gloss. Customers can use the same day-to-day services, such as curbside pickup or home delivery, by target to purchase their beauty online beauty.
Reverse Target will train employees as beauty consultants.
Shares of Ulta rose about 8% in pre-market trading on Tuesday and shares of Target rose 1% after the companies released the news.
Cornell and Alta CEO Mary Dill told CNBC they see the strategic partnership as a long-term deal that will grab customers’ attention and sell more. They declined to share the length of the contract or the financial terms, but said they would expand Alta Beauty on target to hundreds of additional stores over time.
As the coronavirus epidemic shakes up retail industry and purchasing behaviors, Dillon said retailers “are embracing a time of change for innovation and leadership.”
With the deal, Target will gain a unique traffic driver in the fast-growing merchant class, while reverse will gain visibility on store shelves and a website that increases its reach during epidemics.
Both companies will receive a large audience. Together, they have more than 100 million active loyalty program members on Target Circle and awards for Alta – including more than 33 million people from Alta.
Target, which sells everything from groceries to pillowcases, is able to keep its nearly 1,900 stores open during the global health crisis.
The retailer’s profit rose nearly 80% in the second quarter compared to the same period a year earlier. Its curbside pickup service, Drive Up, has grown by more than 700% over a three-month period. And the company said it attracted 10 million new digital customers and took બજાર 5 billion to market in the first half of the year.
As many competitors have struggled, the goal has strength – even in discretionary classes. Its beauty sales rose more than 20% in the second quarter.
Alta, on the other hand, was hit hard when the store closed. Sales of the same store of the beauty retailer fell 26.7% in the second quarter of the year, but have gradually improved. Comparable sales, which are sold at at least 14-month stores, and its e-commerce sales were down% down in early May, but when most of its 1,664 stores reopened in July, it improved slightly and was up 10%. Was at a low level. .
Beauty cells have been rocked across Saurashtra during the epidemic. The number of Americans is small and they are working remotely instead of dressing in the fee. About 70% of consumers have lagged behind in their use of makeup this year, according to the NPD Group.
However, some categories such as skincare and hand soap have gained popularity as shoppers have focused on comfort and self-care, this has found its way. Sales of hair products, for example, increased 11% in the third quarter, as consumers bought hair masks and hair dyes.
“We are publishing two stories for beauty – one for stability and the other for recovery,” said Larissa Jensen, beauty industry consultant at NPD Group.
Instead of a shared tube of lipstick, shoppers can use the reverse digital tool GMLLAB to safely try a makeup item.
At the converse, Dill said the sale reflected a “desire to take more care of the home,” as customers buy things like facial masks and supply themselves for nail or hair care.
Cornell said the goal deal with the reverse would “accelerate the class and investments we’ve been doing in beauty for years and years.”
“This is a very important category,” he said. “We believe it will be in a high growth range.”
The partnership of goal and reverse is not the first of its kind. Jesse Penny and Safehora entered into a similar agreement in 2009 to add makeup and beauty shop concepts to department stores. However, the long-struggling department store has lost market share as it has achieved its target. Penny filed for bankruptcy protection in May.
At Target Alta Beauty, Dill said customers will find a “curated assortment of established and emerging reputation beauty brands.” Shoppers will also see an epidemic-inspired addition: a reverse virtual tool called Glamlab that allows consumers to try on makeup digitally, instead of sharing samples of lipstick and eye shadow palettes with others.
Cornell and Dill said the companies are working together to identify the stores that the stores will get first and said their beauty merchants will help select specialized brands and products.
“It’s going to be showstopping,” Dill said. “Targeted guests won’t miss it. They’ll see something new happen, and I think they’ll want to jump in and take part.”
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