As Sephora grows its private label range and owner LVMH launches an ever-increasing roster of beauty brands, L’Oréal, Estée Lauder et al are being forced to fight for ever-dwindling shelf-space at the luxury beauty retailer, according to a report published by the Wall Street Journal.
The Wall Street Journal report revealed that LVMH’s 15 beauty brands take up nearly half the available space in the store’s make-up section, leaving scant room for the 185 other brands stocked by the popular perfumery chain.
And with department store sales in the doldrums, it’s no surprise that brands are looking to standalone stores and e-commerce to up their share of distribution. “The pressure is there, and its growing,” Ali Dibadj, Analyst at Bernstein Research told WSJ. “That’s why Estée Lauder is trying to retail its own products.”