How Sephora Is Thriving Amid a Retail Crisis

As a size 14 woman, I feel far more welcome in Sephora than any other major retailer. Imagine, a store that wants my money! And no, I am not youthful.

The Sephora stores and website are truly addictive. I'm a 50 year old woman who generally takes a very minimalist approach to makeup but I find Sephora irresistible. Whenever I read an article about a new beauty or skincare trend, my go-to site to research further is Sephora. I also appreciate their generosity with the free samples and rewards points. Obviously it's an effective marketing tool for them, but it really does help customers navigate the thousands of beauty products out there.

Nah, it's not just millennials (though I am one). Makeup brands and products have proliferated to the point of confusion. I'll spend $62 on a product that works than $24 trying to figure out which of the three Maybelline beiges I might qualify for... 'cause they'll just discontinue it within a couple years anyway.

I used to only be an occasional Sephora customer until they introduced their Flash shipping option. For $10 a year (which is only a few dollars more than the cost of shipping for one order), you can get free two-day shipping on all orders. That, combined with the fact that Sephora's online store provides 3 free samples with every order AND weekly promotions that give you premium samples with low minimum orders (usually $25 or $35), has made me a much more dedicated Sephora shopper. Frankly, I don't find Sephora's physical stores that appealing (they play loud music, are often crowded, and the product selection is overwhelming), but the incentives to shop online are hard to deny. I definitely spend more on beauty products than I used to, and I'm having more fun doing it, because I get to try lots of new products. Just goes to show that retailers who innovate can by successful.

I would say that Sephora knows their customer base, and that base skews young. Older woman here speaking. I buy my (high-end) makeup and beauty supplies online, from stores that either give me cash back or points. My go-to sources are Nordstrom and a couple online stores that are accessed through a cash-back portal. I don't buy trends. I am brand loyal. I have never made shopping a group activity, and I do not like having a salesperson assess my face or put anything on it. I don't do social media. So today's Sephora is not my bag. But I mention all this because until maybe ten or more years ago I was a loyal Sephora customer -- both online and in-store. I liked their reward points system and free samples, and their clean, uncluttered stores. But they failed to keep me on as a customer, even as my buying power rose, and that could be considered either a failure, or a savvy decision on the company's part to keep their clientele young and current. Maybe a beauty store can't be all things to all customers, and a choice must be made. I don't know. The younger, trend-driven customer surely uses more products than an old dame like me, but this old dame buys products with a higher profit margin. And now I buy them from places other than Sephora.

I shop both in-store and online with Sephora. My only retail complaint, is that I work during the week, & when I go to shop on the weekends, the lines are so long, I cannot wait .(fractured kneecap) Some of the stores have let me sit after awhile, but most can't. One suggestion, I have made in their surveys, is to equip staff with mobile devices to ring up sales throughout the store.(like nordstrom rack) I still will shop there, and hope they never abandon their bricks-and mortar stores.

Sephora creates great customer experience, which is what counts when it comes down to sales.
I love the concept! Unfortunately, I don't shop there because they don't carry Korean brands I use.
Another surprising thing to learn is how much cosmetics is in demand. I haven't bought eye shadow since 2014 and I use only natural brands for my face, which are not found in Sephora (100% Pure).
But overall, congrats on great CX!

Makeup will always be an area that resists online trends.
It is expensive, you need to try on lots of different items to find the 'right' color match and can not return product due to health safety guidelines often times.
A store or makeup counter where you can sample will always be the preferred method of purchasing makeup.

I tend to patronize Ulta over Sephora because they seem to have a wider selection of discounted products. The back row of Ulta always has great deals.

How ironic --

I literally walked into my fron door about 30 minutes ago after a round trip from my home in one of the outer boroughs all the way to Macy's in Herald Square - specifically for the purpose of buying a Mother's Day gift for my wife of her favorite perfume, by Esteé Lauder--

The reason I had to go to Macy's was due to the fact that Sephora no longer carries Esteé Perfumes - only their cosmetics -

I walked into Macy's, where I immediately spoke with a very friendly attendant who pointed me in the direction of the Esteé Lauder counter - which was only steps away -

The counter was busy with many customers - some making purchases, others receiving free makeup applications -- but soon I was approached by a friendly woman who asked if she could be of help --

I told her exactly what I was looking for and she led me to a display with special gift sets for Mother's Day -- exactly what I was looking for -

I was delighted to purchase one and - to my amazement - she offered to gift-wrap it for me -- The entire transaction was pleasant, easy and successful -

Also - I usually go to Sephora to buy my own men's Cologne by Christian D'ior - however the last time I had to go to three different locations before I could find a store which had it in stock --

Well - right across from the Lauder counter at Macy's is the D'ior counter - so I walked over just to see if they carried my cologne, which they did - and nobody pressured me to buy anything !! --

Thank you Macy's...

I was always wandering away when my girlfriends, now wife, stopped at the cosmetic counter in the big retail chains like Macy's etc...either because of the heavy pitch to buy expensively priced product du jour, the annoying attempts to entice me with male products...or the clearly "I just got this job, not sure what a female with darker then poster-white skin would need..."

But then I was brought into a Sephora or Ulta...it took a few visits, but then I got it. It was like a Sporting goods or hardware store where you could actually try the stuff out! Not just look at the box, or a likely damaged display model, that didnt work. And the prices weren't absurd! And if all you needed was X, thats all you needed to buy and it was fairly priced...instead of those package deals at the other places...which were never really deals.

Good to see a retailer that gets-it and hires people that do too...and have not gone the route of other big retailers that will hire anything that breaths.

Makeup and alcohol always thrive in a down market.

Just yesterday I visited the beauty/fragrance department in the lower level of Barneys on Madison Ave. It was 12:45 pm on a weekday, prime time for women on their lunch hour. The place was a morgue. The salespeople on commission attack you as soon as you come within range, and if you make eye contact, they come even more aggressive. Barneys may not be going after the same audience, but my experience is instructive. It's not how women shop for cosmetics anymore. One line that does a good job self-marketing the in-store experience is MAC - their people ARE knowledgeable and cool.

in these crushing times for most of us, a new cosmetic can be the difference between feeling the poverty and feeling better - as during any lean times.

This is a French company that certainly is getting it right both in the US and elsewhere. It does much other companies can learn from.

When I visit Sephora, I'm immediately approached with a non-smothering offer of help if I need it. The staff aren't loyal to a particular cosmetic line, and I can try as much as I want (including the ability to take some home) without feeling pressured to buy. It's no wonder I go there exclusively for cosmetics.

Contrast that with Macy's. The economic model where sales associates are subsidized by the line they represent, combined with unapproachable glass counters, makes for a challenging experience. Add in either hovering individuals who are pressuring you to buy from their line only, or - what seems to be the norm today - a poorly staffed area within the department store where you are struggling to actually find help, then it makes sense as to why Sephora has the upper hand.

It's too bad the department stores didn't react to this clear consumer shopping presence preference earlier as it may have helped stop their slide to obscurity.

While "selfie culture" is certainly impacting the rise of Sephora, the "lipstick effect" may also be in play. Millennials without the kind of cash to afford, say, a trendy $595 Mansur Gavriel bucket bag CAN afford the $54 Naked eyeshadow palette, or maybe even a few of them. As a recent graduate I can certainly say that retail therapy is easier to come by in the makeup aisle.

I have two female siblings around 18, they both love Sephora/Ulta and are obsessed with viewing makeup videos and images on social media.

These retailers prove speciality works, you just need to actually be special. Both Ulta and Sephora are generally clean with a fresh and modern look, with well trained employees who are passionate about the products and are well tuned to provide contextual recommendations.

As a 20 something male I have purchased from both of them online, Sephora's digital efforts are nothing to scoff at. I found a shampoo I would be embarrassed to buy in public thankfully to their digital community and fantastic website. My hair has never been healthier.

Digital first, customer first, and caring about the products you sell will NEVER be a wrong move in the 21st century.

I don't know anyone under 40 who gets her cosmetics from the department stores. I've been a Sephora customer since 2005 when I was 24. Before that, I used drugstore cosmetics. I never liked the department store makeup counters because the sales associates were always snooty and pushed me to buy more products. The Sephora sales associates always have suggestions and I love to hear their opinions because they all love beauty products too but never in 12 years has anyone at Sephora ever pressured me into a sale. I love being able to try anything I want, getting help when I need help, and not having products pushed on me.

If Sephora carries it, I will always buy from Sephora over every other beauty retailer.

I am in an older catagory, and wear 8 or so make-up products a day. Looking my best is important.
But, a natural question is where on earth do these people find the time to stroll into Sephora to just have fun playing with make-up? Don't they have more important things to do?

As someone a little over the 54-year-old demographic that Ms. Grant talks about, I guess I'd be considered an "older consumer." But don't assume that I'm confused or not delighted to happily wear "five or more makeup products every day" or experiment with fun technology. Sephora is one of my mother ships. and I shop and play makeup there and online on a regular basis, presenting my VIB Rouge Card when I check out.

The lady behind the cosmetics counter was never actually that knowledgeable. She was on commission and pushing expensive products, whether you needed them on not. The beauty of the Sephora model is when you DO ask for help, the staff have no vested interest in loading you down with a particular brand or products you don't need. Also, what this article neglects to mention, Sephora's no questions asked return policy. So you don't have to live with a mistake. It is the only place I have ever returned a mascara.