BW Confidential - Issue #13 - March/April 2013 - (Page 61)

Department stores Time for change Faced with competition from beauty specialist stores, US department stores are changing their game. We analyze the latest initiatives from some of the market leaders by Alex Wynne “ Department stores understand that their focus coming out of the recession is that the aspirational shopper isn’t necessarily coming back to the degree they had hoped, so they’ve got to look to their core luxury shopper, who wants unique products, brands and experiences ” WSL Strategic Retail ceo Wendy Liebmann Macy’s Macy’s conversion into a national chain, which began in 2006 following a series of mergers and acquisitions, initially met with reticence on the part of market players. Fast-forward half a decade, and the 800-plus store chain has moved on to become the US’s biggest player in the prestige cosmetics space. “Macy’s is now the big guy,” Clarins North America president and ceo Jonathan Zrihen notes. “It took them a while to get everything right but today, their efficiency and leverage of national presence in media, supply chain and digital is strong.” Stores by numbers • Macy’s: 800+ stores • Bloomingdale’s: 37 full-line department stores • Saks Fifth Avenue: 46 stores • Lord & Taylor: 48 stores • Neiman Marcus: 42 Neiman Marcus stores, 2 Bergdorf Goodman stores • Nordstrom: 117 full-line department stores March-April 2013 - N°13 - BW Confidential Bloomingdale’s Macy’s higher-end little sister has been focusing more on services since the revamping of its Manhattan flagship in 2009. For example, the retailer introduced Recent initiatives include the introduction of Macy’s Impulse self-service cosmetics departments in around 150 stores. The Impulse format offers make-up in a gondolastyle universe similar to that of specialty cosmetics chains. Macy’s has also been testing the Beauty Spot, an interactive kiosk that lets consumers browse across brands, read online reviews, interact on social media and print or email a shopping list. A dedicated sales associate brings selected products to the kiosk to save time. In early 2012, Macy’s began a four-year, $400m revamp of its Herald Square flagship in Manhattan. Its new cosmetics department is expected to have a more upscale feel and a new way of presenting its offer. While Macy’s Inc (including Bloomingdale’s) does not break down beauty sales, industry sources estimate that the category accounts for about 15% of its business, or around $4bn. a Bumble&bumble blow-dry bar at the heart of the beauty floor, and has added Clarins spas in certain outlets. Bloomingdale’s was the first store in the US to launch Clinique’s Experience Bar, an extension of its Service As You Like It concept, which offers varying levels of service to allow shoppers to access its offer in different ways, from full consultations with beauty advisors to grab on-the-go. The retailer also has a partnership with UK niche beauty retailer Space NK, offering it a turnkey way to access niche products. Some 15 SpaceNK spaces now operate within Bloomingdale’s stores. n n n 61

Table of Contents for the Digital Edition of BW Confidential - Issue #13 - March/April 2013

Cover
Comment
Contents
Update
- Brand & retail news recap
- Companies on the move
Take note Market facts, figures & trends
Best of BW Highlights from our e-publication
Launches The latest in fragrance, skincare & make-up
Interview Natura Cosméticos evp José Vicente Marino
Insight: Make-up
- Category overview
- The latest trends
- Social media
- Retail viewpoint
- Retail case studies
- Increasing usage
Retail
- European perfumeries
- Store concepts
Digital Mobile strategies and brand case studies
Strategy spotlight Trends to inspire
Market watch: US
- Country overview
- Department stores
- Specialty stores
- Industry viewpoint
Emerging markets Company profile: Jequiti
Radar A profile of six up-and-coming beauty brands
Travel retail: Brazilian travelers
- Overview
- Passenger profiles
Packaging Designs for travel retail
Last word The Beauty Company’s Alisa Marie Beyer on new ways to converse with consumers

BW Confidential - Issue #13 - March/April 2013