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It’s shoppers like Quinn Kelsey who keep department store executives up at night.
This is where the 38-year-old Denver resident gets her makeup ideas tiktok Videos and other social media content, not salespeople at beauty counters. She uses an AI chatbot to get product recommendations that suit her budget and to see how a certain foundation or lipstick will look on her. When she buys, it’s usually Amazon,
“I use Chat GPT as my personal beauty consultant,” Kelsey said. “Department stores? I’ll go through one of those for the decor, but they’ve basically lost me unless I can get the same product-research experience there that I can at home scrolling through my phone.”
Once the top beauty destination, department stores lost sales and authority as skin care and makeup trendsetters in the late 1990s. that’s when development happened Sephora And Ulta Beauty made shopping for cosmetics more of a playful, self-service experience.
But rapidly changing consumer preferences have retailers of all types racing to outdo each other in the US$129 billion beauty and personal care market. Due to the ease of e-commerce, competition is fiercer than ever. Amazon, which has gradually added premium beauty brands to its vast selection, is the country’s largest online seller of beauty and personal care products, according to market research company Euromonitor International.
Social media has also provided new sources of beauty guidance. Instead of store advisors, many consumers look to videos of influencers, beauty brand founders or dermatologists for advice. Shoppers also turn to TikTok and Instagram for information about “scams” — drugstore versions of more expensive products.
“Stores are like showrooms, but the spark is happening in TikTok itself,” said Jake Bjorseth, founder of Generation Z ad agency Trendstr.
To keep up, companies with both physical and online stores are investing in upgrades aimed at giving beauty fans like Kelsey an experience they can’t get anywhere else. macy and NordstromFor example, it renovated the beauty floors of its flagship New York store to add more space, ultra-luxury brands and cutting-edge technology. At Nordstrom, customers can book an appointment to get robot-applied eyelash extensions for $170.
The makeovers were launched in time for the holiday shopping season, which accounts for nearly one-quarter of all U.S. “prestige” beauty sales, according to market research firm Circana.
More reasons to stay late
Department stores chasing beauty sales are introducing some of Sephora’s serve-yourself features — Nordstrom has installed a “beauty bar” with brightly lit mirrors where customers are allowed to pick up makeup from different counters — while they’re trying to differentiate themselves from specialty and online rivals.
Officer from Macy’s And Nordstrom said the latest changes were designed to create an inviting environment that encourages shoppers to stay longer and spend more. The overhaul at Macy’s Herald Square included comfortable seating and skin analysis equipment that helps make up for the lotions and potions cases that cost hundreds of dollars.
In the Parfums de Marly section, customers sample fragrances while wearing virtual reality headsets meant to immerse them in an 18th-century castle that the French fragrance maker cites as its inspiration.
“This is the future of beauty,” said Nicolette Bosco, Macy’s vice president of beauty, referring to the interactive technology the department store considers central to providing shoppers an enhanced experience.
The company expects to redesign the beauty departments of 40 more stores. Macy’s Inc. CEO Tony Spring said the facelift was aimed at attracting buyers of all ages.
“We’re working very hard to take the idea of a department store and make it intimate, friendly and convenient,” he said.
Since becoming chief executive of the department store’s parent company last year, Spring has focused on revitalizing Macy’s by trying to attract higher-spending customers while boosting sales at Bloomingdale’s and upscale beauty retailer Bluemercury, both of which are owned by Macy’s.
Nordstrom revealed the reimagined aesthetic of its Midtown Manhattan store in September. It includes an area where shoppers can test out beauty tools like LED light therapy masks and a “scent finder” machine that dispenses the dry scent of 60 different scents.
Nordstrom also expanded the beauty treatment area in the New York flagship and some other stores and added a medical spa that offers Botox and dermal filler injections priced from $575 to $1,050.
A closer look at the competition
Sephora redefined beauty shopping by installing mirrors and disposable application tools near compact displays of both tester products and ready-to-grab accessories. The DIY concept was a stark contrast from the department store counters staffed by beauty consultants, who inspected product samples and retrieved fresh products from closed drawers.
But even innovators have to innovate. Sephora, a division of French luxury goods group LVMH, is in the process of updating its 720 stores in the US and Canada.
Stations where customers get their hair and makeup done are being moved to the side for more privacy. The chain, known for its long cash register lines, plans to speed up check-outs by equipping salespeople with devices that accept cards and contactless payments.
Ulta, which stocks drugstore beauty brands like Maybelline as well as high-end brands, has been running in-store hair salons since its founding in 1990. It plans to perform ear piercings, test robotic manicures and add Nordstrom-like robotic lash extensions to its service menu next year.
Walmart has entered the field of specialty retailers and department stores with products from high-end and independent brands. The country’s largest retailer has installed beauty counters in 100 stores this year, where customers can try the products.
Social media and the great beauty race
After working a fashion event at Nordstrom’s Manhattan flagship, freelance stylist Evan Lyon, 35, headed to the Tom Ford fragrance counter. An hour later he left having spent $537 on two bottles of perfume: a unisex scent named Bitter Peach and another named Vanilla Sex.
Lyon planned to wear them together, a practice known as “scent layering” that he had heard about on social media. The salesman at Nordstrom attracted his interest by suggesting they apply Tom Ford’s fragrance together.
“It’s great when you mix two scents and it creates something new,” Lyons said. “I think it helps the psyche and builds confidence.”
Lyon, who typically buys his fragrances online, offers hope to department stores but also represents the uphill climb they face given customers’ multifaceted shopping habits.
TikTok is not only giving rise to trends like “tired girl” makeup and “blurry skin” but is also becoming a place where users discover and buy new brands. Social media platform TikTok Shop, launched in 2023, has emerged as the country’s seventh-largest online seller of beauty and personal care items, just behind Target, according to Euromonitor.
The market research firm said Macy’s and Nordstrom’s online market shares are less than 1% and 0.5% and declining.
Amazon, which accounts for about half of online beauty and personal care sales, aims to mimic the physical store experience with a virtual makeup try-on tool like Sephora introduced in 2016. Meanwhile, Sephora unveiled an AI-powered online tool in March that uses selfies to identify potential skin concerns and recommend product.