What: Zara enters a very competitive market in the US

Why it is important:  Beauty is a traditional market for department stores providing a significant share of their margin. Any new player is potentially a new disruption to deal with.

Zara beauty is launched simultaneously on-line and in select stores, with a full assortment of formulas for eyes, lips, face and nails, developed by 9 different talents and partners. It aims to make the most of their millennial customer base and enter an already crowed – and competitive – market:

• Sephora is moving out of JC Penney and opens 850 stores in Kohl’s stores, plus 60 new free-standing locations,
• Ulta Beauty will add 30 new units to their 1,275 store-base,
• Macy’s has acquired 60 Bluemercury stores in 2015, expanding them to 183 this year and 213 in one year’s time,
• Amazon is reported to eye at this market too.

Zara Beauty launches