Sephora to open 100 stores as part of growth plan

Sephora to open 100 stores as part of growth plan

THE WHAT? Sephora is set to open 100 stores in 2020 as part of a growth plan that sees it looking to expand past its shopping mall locations. 

THE DETAILS The LVMH-owned beauty retailer will be looking to ‘off-mall’ locations in areas such as Charlotte, North Carolina, and Nashville, Tennessee, as part of what the company calls a ‘hub and spoke strategy’. 

Speaking to CNBC in an interview, Jeff Gaul, Senior Vice President of Real Estate and Store Development at Sephora Americas, said, “We love our stores in malls … but the focus on this next 100 is more off-mall locations. 
“We are getting closer to where she lives and works, where she does most of her errands … where she can pull right up and grab something.”

Set to be slightly smaller than its current stores, the spaces will focus predominately on fragrance and hair care, areas in which the company has witnessed high growth rates. 

THE WHY? Set to compete against the likes of Ulta Beauty, the retailer is opening stores in an economic environment when many are shutting up shop. 

Speaking of this decision, Gaul said, “We hope to create a network of stores to serve clients in all the needs that she has. We do not believe retail is dead. We think quite the opposite. We think it is alive and kicking.”