I’m standing within the magnificence aisle of my native drugstore, taking images of every row of mascara. No, this isn’t a brand new kind of retail analysis. I’m simply texting the photographs to my spouse, who will then inform me which mascara to purchase. Expertise is an excellent factor – we are able to now all be a stay private shopper.

In the present day, inflation is taking its toll on us buyers. We’re making fewer journeys to the shop, and after we go, we’re spending much less. However this magnificence aisle I’m standing in is without doubt one of the few locations that many people nonetheless appear to be spending. Regardless of persistent inflation, the wonder class has remained resilient.

It is sensible. We’re all going out greater than we have been within the pandemic. To live shows, dinners or drinks with mates, and sure, even again to the workplace. And while you’re out, trying good is essential!

Drug shops are well-liked for cosmetics, however magnificence is a small share of their income

Hottest purchasing locations for cosmetics

Drug shops are prime locations for magnificence buyers, however cosmetics make up solely 2.3% of drug retailer income, based on IBISWorld. Past the pharmacy, the wonder class is led by three main gamers: Ulta Magnificence, Bathtub & Physique Works and Sephora.

Magnificence, Cosmetics & Perfume Shops 2021 Trade Income: $29.3bn

Ulta to ultimately be in 40% of Goal shops

Ulta Magnificence has seen vital year-over-year foot visitors development each month since March 2021, based on knowledge from Placer.ai. Ulta mentioned in Might that it deliberate to open 50 web new shops in fiscal yr 2022. Since then, the corporate reported gross sales almost 35% above pre-pandemic ranges in the newest fiscal yr. 

Ulta Magnificence Retailer Depend

Goal has partnered with Ulta to open tons of of branded store-in-stores, with plans to ultimately have them in 40% of all Targets. In Might, Goal CEO Brian Cornell mentioned that the wonder class noticed double-digit gross sales development, which was stronger than different classes.

Kohl’s needs a Sephora in each retailer

Sephora, which is owned by LVMH, reported a powerful rebound in 2021.

Sephora Retailer Depend

For its half, Sephora has chosen to associate with Kohl’s to create its personal branded store-in-stores.

Kohl’s has been hit by inflation, with buyers selecting to spend much less on classes like attire and footwear. Similar-store gross sales in the newest quarter fell by 7.7%. However buyers are nonetheless spending on magnificence, and Kohl’s plans to seize that development.

In 2021, Sephora and Kohl’s agreed to a ten-year partnership. Kohl’s may have Sephora- outlets in at the very least 850 shops by 2023 and can open smaller Sephora outlets within the remaining 300 shops, in order that ultimately all Kohl’s may have a Sephora presence.

• “Sephora at Kohl’s” shops are 2,500 sq. ft and have roughly 100 manufacturers. Positioned prominently within the entrance of the shop, Kohls has reported that they’re driving new buyers to Kohls shops.

However whereas some magnificence chains are doing properly, others are seeing falling gross sales. Bathtub and Physique Works noticed gross sales decline 5.1% year-over-year in its second quarter. Sally Magnificence’s most up-to-date quarterly gross sales have been down by 6%. 

However whereas they each are within the Magnificence class, these two chains will not be the identical as Ulta and Sephora. Sally Magnificence is a number one useful resource for salon professionals; 41% of its gross sales final yr have been made to professionals. And Bathtub and Physique Works is extra centered on private care –  promoting lotions, soaps, and candles.

In distinction, Ulta and Sephora are essentially the most cosmetics-forward chains within the class, and proper now that seems to be what buyers need.

Again at my native drugstore, I get a textual content from my spouse.  She’s chosen a Neutrogena Wholesome Quantity mascara. The costs for our weekly groceries could also be climbing, however that doesn’t imply we’re skimping on cosmetics.  In any case, a part of feeling good is trying good!