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Mecca is an Australian beauty retailer founded in 1997 by Jo Horgan, a former executive at L’Oréal. Privately owned by the founder and her husband, Mecca operates 110 stores, serving over 4.5 million customers annually and employing 7,000 people as of 2025.

The company doesn’t disclose sales figures but says it has grown tenfold since 2017. A 2022 IBIS report estimated Mecca’s revenues to be approximately equivalent to €580 million. Other industry sources estimate revenue to be around €865m.[1] According to WWD’s BeautyInc, Mecca continues to outperform the overall market in Australia and is expected to end 2025 with around €1 billion in turnover. Horgan says Mecca’s growth rate is three times higher than the 2024 Australian prestige beauty market, which posted a 3% year-over-year growth.

Succeeding in maintaining its pole position in the market despite Sephora's power and means to develop in Australia, Mecca is an interesting company in its own right. The retailer also has more outlets than the two leading Australian department stores combined, David Jones’ and Myer’s 100 stores. Said to be the world’s biggest standalone beauty store, the recent opening of Mecca’s new flagship store in Melbourne (pics attached) is an opportunity to understand more about the retailer’s success.

1997 and beyond: the making of a beauty powerhouse

Brand-agnostic store from day one: Mecca’s original edge

In 1997, Horgan had identified a gap in the Australian beauty market. As was the case in many regions, beauty retail in Australia was dominated by department stores, where cosmetics were sold through brand counters. Similar to the Sephora concept, Horgan’s idea was to create a multi-brand beauty store where customers could browse freely, receive unbiased recommendations, and access a curated selection of international prestige products not otherwise available in the market. To this day, this remains a strategic goal for some department stores and beauty retailers alike.

Dubbed Mecca Cosmetica, the first store opened in Melbourne in 1997. From its inception and mirroring Sephora’s early days, Mecca was remarkable because:

• It positioned itself not as a traditional retailer but as a beauty authority, staffed with trained advisors who were not tied to specific brands. This was an early expression of the brand-agnostic ethos that would later become a hallmark of the company.
• It pursued exclusive distribution agreements with high-profile global brands,[2] giving Mecca a unique positioning in Australia. These exclusivities not only differentiated the store’s offer but also created a strong sense of discovery.

From dotcom to own brand: a pioneer strategy

By 2001, Mecca had launched its first e-commerce platform, making it a pioneer of online beauty retail in Australia. This early digital move predated Sephora's entry into the Australian market by more than a decade. It signalled Mecca’s ambition to combine physical and digital channels long before omnichannel retail became mainstream.

In 2003, the company introduced its first private label brand, Mecca Cosmetica. Interestingly, unlike Sephora’s own brand, which targets a mass-market price point, Mecca positioned its private label closer to the premium segment.[3] Besides increasing margins, it reinforced Mecca’s positioning as a beauty expert and tastemaker.

During this period, Mecca gradually expanded beyond Melbourne, opening new locations across major Australian cities. By the mid-2000s, it had established itself as a national player, developing its presence in prestige shopping districts rather than mass-market malls. In 2007, Mecca expanded internationally for the first time by entering New Zealand, with stores in Auckland and Wellington.[4]

Segmentation as strength: tailoring formats for every shopper

The late 2000s also saw the beginnings of format diversification. While Mecca Cosmetica stores were sleek, boutique-style outlets aimed at prestige consumers, the company began experimenting with larger footprints and broader assortments, laying the groundwork for what would later become the Mecca Maxima format. A turning point for the company, Mecca Maxima was conceived as a ‘beauty superstore’ offering both prestige and trend-driven brands in a larger, more playful environment. Mecca Maxima was aimed at younger consumers and equipped to compete directly with Sephora’s global model, which would enter the market in 2014.

The first Mecca Maxima opened in 2007, but it was in the early 2010s that the format gained traction and expanded nationally. This dual-format strategy, Mecca Cosmetica for prestige boutique experiences and Mecca Maxima for younger, more mass-oriented shoppers, allowed the company to segment the market more effectively. During this period, Mecca also continued to deepen its exclusive brand portfolio.

Scaling beauty: training, testing global ambitions and flagships

By the mid-2010s, Mecca invested heavily in its online store and began developing integrated services such as click-and-collect, 90-day return policy and personalised product recommendations. At the same time, it intensified training of in-store advisors through what would later evolve into Meccaversity, an internal training and education platform (see more below).

In 2017, the company launched Mecca Max, a new private label targeting Gen Z and Millennial shoppers with trend-focused products at accessible price points. By 2019, Mecca had grown to over 100 stores across Australia and New Zealand and was capturing an estimated 25% of the prestige beauty market in Australia, with sales quintupled in five years. At that time, Mecca credited its success partly to investments in e-commerce logistics, offering 1-day to 3-day shipping in a country often plagued by long delivery times. Its private labels represented around 10% of the local beauty market.

While Mecca remained focused on the Australian and New Zealand markets, it began to test international opportunities as Horgan wants her company to become the “world’s most loved beauty destination.” In 2020, it launched a store on Alibaba’s Tmall. The move was a cautious step toward international e-commerce, but the company pulled out in 2023. As a second international test, they launched Mecca Cosmetica in the UK, France, Germany and Spain.

The company also invested in flagship projects to reinforce its status as a destination retailer. In 2020, it opened its largest Mecca Maxima store in Sydney, featuring interactive elements and expanded services and designed to rival Sephora and reinforce Mecca’s reputation as an innovator in experiential retail. In August 2025, they opened their biggest store to date in Melbourne.

Exclusivity, community and service: Mecca’s winning formula

Differences and similarities with Sephora, the best of the two worlds

Sephora arrived in Australia in 2014 and now accounts for 31 stores. The company imported its global model, focusing on large-format stores, rapid expansion, and a standardised experience. By contrast, Mecca tailored its stores and product offer to local consumer expectations, emphasising exclusivity, service, and community engagement. Whereas Sephora’s stores often feel interchangeable across countries, every Mecca store claims to be unique and bespoke to its environment, and flagships are site-specific cultural landmarks that integrate experiential dimensions. Overall, Mecca’s stores are designed not just to sell products but to encourage discovery, play, and education.

Also, some stores combine both Mecca Cosmetic and Mecca Maxima concepts under one roof. These Mecca stores offer a ‘high’ and ‘low’ experience, featuring different price points and everything from one-on-one makeup applications to group tutorials, where team members guide up to ten customers through various topics. Unlike Sephora flagship stores, which typically have only a few skin treatment chairs, Mecca flagship stores offer customers a fully developed aesthetic area.

Despite Sephora entering the market, Mecca remains to this day the go-to beauty destination for most people. The company’s mission is to be Australasia’s leading premium beauty authority while embedding a distinctive Australian sensibility, less formal than department store counters, yet more premium than pharmacy or mass channels. Finally, Mecca also has a few shop-in-shops in Myer department stores, as is the case for Sephora at Manor in Switzerland or Kohl’s in the U.S., for example. This positioning has allowed Mecca to appeal simultaneously to prestige customers, aspirational Gen Z shoppers, and beauty professionals.

When it comes to brand offerings, the breadth of merchandise is key. Not selling beauty giants Chanel and Dior, the retailer carries 234 brands and claims around 80% are under exclusive arrangements (a thorough analysis of Mecca’s website shows only 59% of brands are exclusive). The number of brands and proportion of exclusives are said to be comparable to Sephora. Another similarity is that Mecca invested extensively in private labels that became a significant revenue stream. In addition to Mecca Cosmetica and Mecca Max, the retailer also has Kit: blending effective botanicals for total skin wellbeing and Mecca-ssentials, a short line of products such as reusable makeup remover pads.

Horgan says Mecca now has a market share of more than 30% thanks to its dual positioning as a retail destination and a cultural authority in beauty.

How Mecca turned loyalty into cultural capital

Horgan attributes Mecca’s success to customer loyalty. The Beauty Loop loyalty programme is instrumental here and accounted for 2,9 million members in 2024. Contrary to many beauty retailers’ programmes, customers are not rewarded with discounts, but with sample sets based on their annual spend. The programme has four tiers and offers:

• A minimum of a birthday gift, four rewards per year and complimentary samples with every online order for Level One,
• A birthday gift, at least nine rewards annually, exclusive first access to new products, extra product rewards, invitations to exclusive events and a complimentary makeup session and complimentary samples with every online order for Level Four.
• Not advertised on Mecca’s website, Level Five is called the magic circle and gathers customers who spend more than AU$10,000 per year.

According to McKinsey & Company, Mecca’s loyalty programme is a success thanks to the high perceived value of rewards and surprise gifts. In turn, it has allowed Mecca to build a strong community of customers. Illustrating the retailer’s effective community building, and with immediate success, Meccaland, a large-scale beauty festival, launched in 2018. Despite passes ranging from the equivalent of €39 to €83, the event drew over 15,000 attendees in its inaugural year, combining entertainment, product discovery, and influencer engagement. Extravagant, part shopping experience and part consumer conference, with service staff and Instagram-ready backdrops, the event doubled in size in 2019. It positioned Mecca as a cultural force in Australia’s beauty market, emphasising its role in building community and creating experiences rather than simply selling products. Since then, and with the impact of Covid, the festival has not returned, the company has rather focused on flagship store openings.

Customer loyalty also comes with e-commerce. Mecca's entering the online business as early as 2001 constitutes an unparalleled competitive advantage.

Educating for excellence: Meccaversity as a growth engine

Mecca’s success stems from customer loyalty, as well as exceptional service and education. In 2023, the company formally launched Meccaversity, not only as an internal training programme but also as a public-facing educational initiative. Considered by Horgan as the core engine driver of the business, Mecca allocates 4% of revenue to education. This reinforced the company’s positioning as a beauty authority and educator, beyond commerce. The new Melbourne store (see below) is equipped with a Meccaversity auditorium, serving as an educational space for both staff training and masterclasses for customers, be it mastering eyeliner to flower arrangements.

Additionally, Mecca has developed a strong reputation as an employer brand, appearing in the Best Places to Work list. Over 90% of promotions are internal, ensuring people are recognised for their achievements and given opportunities. Finally, they put a real focus on recruitment.

The new Mecca Melbourne

Historic canvas, modern theatre

In August 2025, Mecca unveiled its most ambitious project yet: a three-level flagship in Melbourne’s Bourke Street, spanning nearly 4,000 sqm. Reminding of the Printemps Wall Street lavish and opulent atmosphere, the store showcases a stunning renovation of a historical Art Deco building by Sydney-based Studio McQualter.[5] Previously the premises of David Jones’ menswear department, the store renovation is state-of-the-art. The original terrazzo floors were restored, along with the exposed concrete columns and ornamental plaster ceilings. Tiles from the 1930s were also revealed, showcasing the building’s rich history and conversing with new store designs and artistic interventions by female artists.

Horgan’s brief for the store was clear: “to create the world’s most extraordinary, innovative and loved experiential beauty destination.” The architecture features thoughtful zoning, ensuring each service seamlessly integrates into the overall experience. There is a significant central void, opening clear sightlines across all levels and highlighting the restored ceiling from the ground floor. A new mezzanine, introduced through this reconfiguration, enhances the store's sense of openness.

From concierge to clinic: a three-level beauty journey

At the entrance sits a large cloud-shaped concierge desk staffed by up to six people to direct shoppers and answer questions, and the Mecca Newsroom, a 300-square-foot space with a large digital installation featuring streams of beauty content and information, from TikTok to brand content.

At the heart of the ground floor is the Beauty Carousel, a circular anchor already tested in other stores. It is designed for customers to gather, try new products, learn techniques and connect with the staff. With space for up to 12 guests, this communal area is inspired by the joy of colour in makeup.

The ground floor is also home to skin care, grouped by trending skin care, high-performance, ingredient-led active skin care, and luxury skin care. Each of these categories comes with both products and services, such as microdermabrasion and deep cleanse facials. Makeup is also located on the ground floor and offers services such as makeup lessons and lash applications at an 18-seat salon. Most service costs are redeemable in products. With the new store opening, exclusive brands were secured, such as Glossier.

Haircare, The Apothecary and a florist complete the ground floor offerings. The apothecary focuses on wellness and is organised according to three concerns: general wellbeing, skin, sleep and stress, longevity and recovery, and hormonal health. A naturopath is available full-time. Wellness services include acupuncture and breath coaching, for example, with prices ranging from €25 to €110.

The mezzanine is dedicated to gifting with a calligrapher and an engraver, and Japanese-style gift wrapping. The space leads to the highly elevated 600 sqm Perfumeria staffed by “scent sommeliers.” There is a fragrance bar with stools where customers can have an in-depth consultation, as well as the Scent-Sorium, a large table with diffusers that dispense scent at the press of a button. Unlike Sephora, Mecca could secure brands such as Diptyque, Byredo, and Officine Universelle Buly, among others.

The floor is also home to the Josh Wood hair salon, a British celebrity hairstylist, Maria Tash piercing studio, Sener Besim jewellery and styling consultation and the Mecca Atelier, which offers makeup, hair, and nails all at the same time, so that customers can have it all done in an hour.

The second floor is 100% dedicated to services. It houses the Meccaversity, which will accommodate up to 150 people for education-oriented events and master classes, and Mecca Aesthetica, the skin care services concept that the company has been testing in other doors. Measuring about 400 sqm, it has seven treatment rooms and offers clinical-level services from brands like Biologique Recherche, Ultraceuticals and Zo Skin Health. Treatments range from €34 for a skin diagnosis (redeemable) to €540 for a peeling session.

A lifestyle landmark

The flagship appears as a cultural institution, positioning Mecca at the intersection of beauty, lifestyle, and education. The store combines retail with experience, offering more than 80 in-store services across hair, makeup, nails, fragrances and wellness, paid or free of charge. The gifting hub, the auditorium and the Mecca Café, which serves everything from martinis to baked goods from a renowned Melbourne bakery, further add a lifestyle flair to the store. The goal is to entice customers to stay the entire day. More than 20,000 visitors attended on opening day, underscoring the company’s ability to generate cultural buzz at scale. The store is expected to reach nearly €60 million in the first year.

Nearly three decades after its creation, Mecca has established itself not only as Australia’s leading beauty retailer but also as a cultural authority. Its strategy, anchored in bespoke stores, exclusivity, education, and customer loyalty, has allowed it to compete with Sephora while retaining a distinctly local identity. The Melbourne flagship exemplifies this ambition: part store, part cultural hub, and part educational institution.

As the global beauty market consolidates and international players intensify competition, questions about Mecca’s future remain. Tailoring online convenience and great in-store customer experiences, such as in the new Melbourne store, is expensive, with company staff and an extensive service menu. This strategy certainly generates significant volumes but smaller profit margins. Also, the company's challenge will be to scale its experiential and community-driven model beyond Australia. For now, however, the company has demonstrated that with brand agnosticism, private label innovation, and a focus on customer experience, a regional player can rival global giant Sephora.

[1] In comparison, Sephora has 3,000 stores in 35 countries and generated €18bn revenue in 2024.

[2] Brands, such as Nars, trusted Horgan for their local development.

[3] Their sunscreen hero product retails at an equivalent of €45.

[4] Mecca now has ten stores in New Zealand.

[5] Known for the Zimmermann stores.

Credits: IADS (Christine Montard)