Sephora announces major change to stores that will alter the way you shop

Sephora will revamp all its 700 stores across the US, altering the way customers shop at the beauty retailer.

CEO Artemis Patrick made the announcement at the National Retail Federation's annual conference this week.

The chain's investment in these store renovations, which will take place over the next five years, is the largest capital project in its history.

The announcement signals that the company is making a big bet on its brick-and-mortar locations.

This is in stark contrast to many other retailers, including big name stores such as Macy's and Walgreens, which are shuttering stores across the country in their droves.

Patrick said that Sephora would make changes to many of its distinctive store features, including its brand display cases which allow customers to try products, its makeover stations, and the product minis sold by checkout. 

She added that while some stores will only receive minor changes, others will get 'major redesigns.'

Since its US launch 26 years ago, Sephora has grown a loyal fan base, and helped boost brands such as Rare Beauty and Urban Decay to household-name status.

The beauty retailer, which is owned by luxury conglomerate LVMH, talked to 'millions of consumers' and used heat maps to examine how people are shopping in-store.

For example, Patrick said that the new stores would have their beauty studios - where customers can have their hair and makeup done - off to the side.

'The reality is, [shoppers] didn't want their makeup being done in the windows - not shocking,' she said. 

Patrick also said that the company would rethink its checkout process to streamline the shopping experience.

Regular shoppers are used to a 'snake' line where they can shop for product minis while they wait to pay, but a quarter of shoppers are actually being checked out by beauty advisors on mobile devices throughout the store. 

Patrick said Sephora plans a greater shift to mobile checkout, and that the minis section could be broken up and moved to the front of stores as opposed to by the cashiers.

She offered less detail about how the chain could redesign the stand-alone displays, known internally as 'gondolas', which showcase one particular brand.

Brands pay upwards of $100,000 to build out a few inches of space where their products will be displayed in store, according to Fast Company.

Larger racks can cost more, and seasonal displays at the front of a location can cost a brand half a million dollars, according to the outlet.

Patrick said the company was open to changing these displays to make them as effective as possible.

'We're not a cheap date - and we don't want our brands to be spending a ton of money on building these amazing fixtures, and then it doesn’t work out,' she said. 

Instead, she added that Sephora was testing out a new layout format that focuses on the brand's four key product categories - makeup, skincare, fragrance and hair care. 

'One of the things that was really, really important to us was ensuring that no matter what, where you are, whether you are in our Soho store, you're in Boise, Idaho, or you're in Vancouver Island, that experience is the same no matter where you go,' the CEO said. 

It comes as a widespread 'retail apocalypse' last year saw major companies file for bankruptcy and brick-and-mortar stores close in their droves.

Up until mid-December, US retailers shut 7,300 stores - up nearly 60 percent from 2023.