What: Sephora’s president of Europe & the Middle East shares plans for continued growth in the crowded and competitive beauty retail market.

Why it is important: Sephora plans to focus on expanding online and physical retail with accelerated global development by opening locations in the UK, Latin America and Asia.

The retailer is relying on the ‘lipstick effect’ to play on consumers’ predilection for small luxuries during uncertain times. Reports have shown that since restrictions were lifted post-pandemic, Sephora stores have seen foot traffic rise as high as 45% in some locations. This uptick aligns with competitors such as Ulta and Space NK. With more brand selection overlap in physical retail, Sephora will continue to push the in-store experience as an opportunity to discover brands. Sephora wants to raise its profile as a brand incubator for indie beauty startups and is looking for around 10 small companies to launch with the Sephora platform.

Social shopping is another aspect Sephora plans to develop with more live streams and affiliate links or sponsored content.

Sephora’s plans for growth and expansion