The main focus of development will be street retail: stores will be opened mainly outside of shopping centers.
Perfume and cosmetics retailer Sephora plans to open 100 new stores in 2020. For a company run by the French fashion giant LVMH, this will be the most significant expansion, with the retail network growing more than twice as fast as in 2019. The main focus of the development will be street retail: stores will be opened mainly outside the shopping centers.
"We love our stores in malls ... but in the next 100 openings, we are focusing more on locations outside the malls," commented Jeff Goel, Senior Vice President of Real Estate and Shopping Development at Sephora Americas. "We're getting closer to our customers by opening up where they live and work, where they do most of their jobs... where they can walk in and buy something."
Among the cities where Sephora will be particularly active in 2020 are Nashville, Tennessee, and Charlotte in North Carolina, although important metropolitan areas such as New York and Los Angeles will continue to be on the retailer's radar as it expands further. "We hope to create a network of stores to serve customers in all their needs," Gaul said. "We do not believe that retail is dead. We think quite the opposite. We think it's still alive and well".
New Sephora stores will be opened in a reduced format - the average retail space will be about 350-400 instead of the traditional 500 square meters. The main focus of the new stores will be on two product groups - perfumes and hair care products. According to research company Euromonitor, over the past ten years, sales of cosmetics and hair care products in the U.S. have increased by more than 50%.
5 FEBRUARY 2020, USA