Sephora has solidified itself as a global beauty powerhouse, fueled by a commitment to rapid expansions that bring high-end brands and innovative shopping experiences to beauty customers worldwide. Hosting over 2,700 stores across 35 countries, with further growth planned, Sephora’s extension strategy shows no signs of slowing.
Recent expansion efforts have focused on key markets such as the UK, Asia, and the Americas. Since re-entering the British market in 2023, Sephora has opened seven stores in key locations, while its ION Orchard flagship in Southeast Asia—often cited as one of “the world’s best-performing beauty stores”— underwent a major revamp earlier this year. Now, Sephora has its sights set on Australia, where it’s ramping up its presence to compete directly with Mecca, Australia’s top beauty destination.
In late October, Sephora unveiled plans to open three new stores in celebration of its 10th anniversary in Australia, adding to the 31 stores built across the region since the prestige retailer entered the market in 2014. The new locations include Westfield Marion, Adelaide; Westfield Fountain Gate, Melbourne; and Westfield North Lakes, Brisbane.
"We are excited to offer our customers an immersive beauty experience where they can explore our extensive product range and engage with the latest beauty tech and digital elements,” commented Mark O'Keefe, General Manager of Sephora Australia and New Zealand.
The new stores are said to be a “testament to Sephora’s passion for experiential retail,” and offer consumers a thoughtfully curated and trend-forward assortment of beauty SKUs. The locations will stock over 100 brands, including Paula’s Choice, Rare Beauty, and Fenty Beauty. Each store will offer beauty and hair studios, which showcase the latest product launches and brand collaborations that are meticulously curated to reflect the latest industry trends.
“Our Sephora stores represent the perfect blend of innovation and experience, allowing our customers to immerse themselves in the world's best beauty brands. As we celebrate a decade in the Australian market, 2024 is a significant year for Sephora,” O’Keefe added.
To mark the start of trading at the latest locations, grand opening festivities took place, including exclusive pre-opening events from 7 a.m. to 9 a.m. on each respective launch day. During these events, attendees could enjoy live DJ performances, engage in beauty stations, and receive product samples. For the first 10 guests in line on opening day, a unique opportunity was granted, allowing them to shop before the store opened to the public. In addition, the first 100 customers in each location were gifted bags including Sephora bestsellers such as Tarte’s Amazonian Clay Face Palette, Sephora-branded merchandise, and complimentary sweet treats.
The latest locations follow the unveiling of Sephora’s redesigned Melbourne flagship store back in September. The destination, which currently sits as the largest in Australia and New Zealand, boasts 7,500 square feet of shopping space, with over 120 brands, a hair and beauty studio, and a Skin Consultation Zone. The retailer marked the renovation as a pledge to give shoppers a successful omnichannel beauty experience. The flagship also houses Australia’s first Sephora Beauty School, a dedicated space for educational classes with beauty brands.
However, despite Sephora’s dedication to growth down under, the retailer still remains second choice to the Australian consumer's preferred destination for beauty purchases, Mecca. Launched in 1997 by Jo Horgan with a single store in the Melbourne suburb South Yarra, Mecca has been trusted by Australian shoppers thanks to its dedication to sharing exclusive brands within the market. When launching, Mecca stocked seven prestige brands new to the Australian beauty enthusiast, including names such as NARS and Stila.
Mecca’s business model was fresh to the Australian consumer back in the 90s, with brand-agnostic staff trained to focus on the experience and education of beauty rather than pushing for instant sales. This was a shift from the usual market norm, which was heavily dominated by two standard retail methods: department store concessions with staff loyal to their designated brand and the classic pharmacy practice of buying directly from the shelf.
“Mecca would absolutely be the market leader in beauty and skincare for the premium shopper,” said Craig Woolford, senior analyst, consumer sector at MST Marquee, an equities research company in Sydney. “A lot of that comes down to the physical footprint,” he added.
Currently, Mecca’s presence in Australia is over four times larger than Sephora’s—as of last year, Mecca had 108 doors across the nation, with plans to grow its footprint by 70% in the next two years. At present, Mecca continues to outshine Sephora in its brand offerings too. The retailer stocks a variety of beauty names, of which around 70% of its 195 brands are exclusive to the retailer in Australia, including players such as Augustinus Bader and Diptyque.
Sephora’s continued expansion in Australia commends the business's dedication to establishing a secure footprint in the market. With a decade of growth under its belt and the ambition to challenge Mecca’s long-standing dominance, the retailer is on a mission to close the gap and make the most of the $3.73 billion Australian beauty market. Ultimately, the competition between the two retailers will surely benefit consumers, giving them more choice than ever when shopping for their holy grail products, as well as exploring new additions to their routines. Whether Sephora will eventually outshine Mecca is uncertain, but for now, the Australian beauty market presents an opportunity for both retailers to continue to engage and inspire avid beauty consumers in the southern hemisphere.
