Business Categories Reports Podcasts Events Awards Webinars
Contact My Account About

Can Sephora’s UK Store Surge Steal the Shopping Spotlight?

Published November 18, 2024
Published November 18, 2024
Sephora

Since the pandemic's end, British beauty has become fiercely competitive, with both brands and retailers showing ambitions to dominate the market. According to the British Beauty Council, the UK beauty industry grew by an impressive 11% in the past year, in what the NPO describes as “a shake off of the triple hangovers of Brexit, Covid, and the cost of living crisis.” As consumer demand for products surge, companies are focusing on innovation in the battle for customer loyalty, hoping to become a desired name in the sector that contributed £27.2 billion ($34.49 billion) to the economy in 2023. This renewed energy among British businesses has transformed the landscape into a dynamic and highly contested region for beauty.

Sephora is a prime example of a beauty giant striving to gain a foothold in the continuously evolving UK market. The retailer will have opened seven stores in the UK by the end of 2024—including locations in London, Kent, and Manchester—evidencing its work in the region to broaden brand presence while increasing profits. Unlike its struggles in London in the early 2000s (where low income and high rents drove the business out of town), sales from Sephora’s re-entry into England bolstered by the acquisition of Feelunique exceeded predictions by 300%, with online impressions reaching 115 million in the first few days of launch back in 2023.

Sephora’s most recently opened destination, located at the Birmingham BullRing shopping center, evidenced the longing of the British beauty consumer to get their hands on Sephora exclusives and SKUs from its impressive assortment of brands. The store opening saw 2,000 shoppers eagerly waiting outside from as early as 7:00 a.m. for the retail ribbon to be cut, which Sephora Global President and CEO Guillaume Motte described as “a testament to people really wanting to live the Sephora experience.”

The Birmingham store launch—which featured the businesses biggest merchandising window in Europe—showcased Sephora’s ability to listen to customers from a range of regions, complementing their lifestyles with extravagant shopping experiences. Celebrating Birmingham's diverse cultures, local Bollywood Dancers, Bhangra dancers, Caribbean festival dancers and members of the Birmingham City University cheerleading squad were part of an exciting interactive parade performed at the front of the store before ribbon cutting.

“The appetite for our opening from this rich and diverse community has been electrifying and energetic, and it was important for us to honor them with a grand opening procession that celebrated the vibrant people of this city,” added Sarah Boyd, Managing Director of Sephora UK. “We are looking forward to welcoming ‘Babs’ from across the city and the region to a beauty space that feels distinctly theirs."

“I know that sometimes we say that retail, and especially retail in the UK, has been doom and gloom. My answer to this is always: boring retail is dead, but exciting retail is alive and really thriving.”
By Guillaume Motte, Global President + CEO, Sephora

In the upcoming months, Sephora is set to open the doors to multiple new mesmerizing destinations, including a destination in Kent at the end of this month, and a Liverpool location early next year. "2025 is shaping up to be the biggest year for store openings since 2008, so we’re hugely excited to welcome visitors to experience Sephora for themselves,” Boyd continued.

As industry insiders began to ponder on what would be next for Sephora’s expansion plans, Motte revealed the retailer's hopes to have opened an additional 13 stores across the UK in the short term future. “We’re probably looking in the next two to three years to have at least 20 stores in the UK,” Motte told The Times. “I know that sometimes we say that retail, and especially retail in the UK, has been doom and gloom,” he said. “My answer to this is always: boring retail is dead, but exciting retail is alive and really thriving.”

The news is sure to spark reaction from other popular retailers in the British market, including big names such as Superdrug, SpaceNK, and Boots. Currently, Superdrug has over 800 stores in the region, while Boots has roughly 200 after closures in the past couple of years, and SpaceNK has 80, with plans to open several more stores in the near future.

Upon Sephora’s re-entry into the UK last year, Seb James, former Managing Director of Boots, boldly stated that his team had focused on making Sephora’s return to British retail “a disaster.” As part of this growing battle, Boots further cemented its position as a longstanding consumer favorite, pushing the competition by opening Boots Beauty stores in locations including Battersea Power Station shopping mall, dedicated to prestige beauty at affordable prices. Sephora is by no means threatened though, as Motte affirmed that the retailer does not plan to be the biggest in the UK, but instead the most valued. “Sephora will never be No.1 in the UK in terms of size, but we hope to become the most loved beauty brand,” he stated.

The retailer has an action plan to become the most loved in the UK, going beyond its constant retail expansion, including offerings such as a tight-knit rewards program. The MySephora points-based scheme rewards British consumers based on their level of spend and engagement with the retailer, naturally encouraging Sephora to become a popular destination for a loyal consumer. The reward system goes beyond simply shopping and allows customers to grow their points by attending in-store services, as well as exclusive early invites to sales and business happenings, alluding to a personalized relationship with each individual customer. “As we embark on the next phase of our business, our priority remains our loyal customers who have been the cornerstone of our success,” added Boyd.

Regardless of hot competition in the British market, Sephora is carving out its own unique path through its ambitious expansion strategy and commitment to consumer engagement. By focusing on its own identity and leveraging its global experience and expertise, Sephora is pushing out the noise of rival companies, focusing on its own ventures. With the next generation of beauty-obsessed consumers, Gen Alpha, already confirmed players in the beauty game—with #SephoraKids housing 239.4 million on TikTok—Sephora seems to have a clear vision and the tools needed to succeed in the British market. The question remains however, which area of the UK will Sephora show up in next?

×

2 Article(s) Remaining

Subscribe today for full access