Cosmetics brand Bluemercury, acquired by Macy's for $210 million in 2015, will open about 55 new stores through 2019 –maintaining  the chain's pace of expansion. The plans underscore how Bluemercury has become a key part of the department store's strategy to defend its turf from online competitors and the rise of chains such as Ulta Beauty Inc. and Sephora. The growth will bring Bluemercury's store count to about 215. Most of the new standalone stores will be in areas where the brand doesn't already have a presence, according to Bluemercury co-founder Barry Beck. Bluemercury's comparable sales growth is in the high-double digits and the company wants to use technology to maintain that pace […]. It's [also] developing phone-recognition software to identify customers as they enter a store and then sending them product suggestions based on recent purchases.

After Macy's outgoing Chief Financial Officer Karen Hoguet said earlier this year that the beauty division "was a business that needed to be rethought," the company has made some progress. It said cosmetics sales gained traction in the first quarter, helping revenue beat estimates.

Full article by Bloomberg "Macy's Plans 55 New Bluemercury Stores"