How Department Stores Are Reinventing the Beauty Experience to Compete with E-Commerce

The return of Hourglass at Barneys New York underscores the shifting dynamics in the department store beauty sector. While these counters once held immense power in launching brands, specialty retailers like Sephora now command far greater sales. Many beauty companies are redirecting their efforts to these retailers, as they generate significantly higher returns. However, department stores are fighting back by transforming their beauty spaces into immersive experiences with luxury offerings, hands-on treatments, and exclusive events, hoping to reclaim their share of the beauty market.

Retailers are rethinking the beauty shopping experience, with Macy’s and Nordstrom investing heavily in innovative in-store activations and product education. From virtual reality experiences to live beauty masterclasses, these efforts are designed to attract consumers back into stores. At the same time, beauty brands are leveraging department stores' large spaces for experiential marketing, offering personalized treatments that cannot be replicated online. While foot traffic has returned, creating memorable experiences is crucial for department stores to remain relevant in today’s competitive market.

The department store beauty counter may no longer be the dominant retail force it once was, but it’s not disappearing. With growing competition from e-commerce and specialty stores, department stores are working hard to evolve. By blending education, exclusivity, and new technology, they are positioning themselves as luxury destinations for beauty shoppers, especially those seeking high-touch experiences. This evolution may be key to maintaining their relevance in a changing retail landscape.

Read more about "Inside Department Stores’ Plans to Bring Beauty Customers Back" on BoF

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