What: The shop, unifying “fitness,” “health & nutrition,” "rest & relaxation” and “sexual wellness" goods.

Why it is important: As Sephora and Ulta Beauty duke it out for dominance in the specialty beauty sector, department stores are increasingly devoting more space and money to wellness in a bid to differentiate themselves and increase their relevance. The shift comes at a critical time for department stores, whose market share in many key areas of beauty has been eroding for the last years.

Data shows that the bet is well-placed. According to the Global Wellness Institute’s 2021 “Global Wellness Economy” report, wellness grew to be an estimated USD 4.4 trillion market in 2020. The sector is due to grow by 8.2% annual growth through 2025, to reach USD 1.4 trillion.

Wellness at Saks

Found under the newly added “wellness” category at the very top of the homepage (listed alongside options like clothing, beauty and home), the drop-down menu includes “fitness,” “health & nutrition,” “rest & relaxation” and “sexual wellness.” With over 1,000 products and 50 new brands, the online wellness shop combines categories and goods — traditionally merchandised separately — dedicated to self-care. So far, among the consumers that are shopping wellness, about 25% are new customers to Saks. Depending on the results online, the wellness store could become an in-person experience.

From bath products to a range of home goods, apparel and accessories including aroma diffusers, humidifiers and sound machines, the “Rest and Relaxation” section is a “favorite” with the highest traffic, with new customers penetrating around 30%. But to date, fitness has done “incredibly well,” as the largest area of product growth.

To showcase some of their new products, Saks has been hosting live digital events: fitness classes with a celebrity trainer and choreographer, online seminars with brands to discuss crystal charging and “energetic” fragrances for instance.

US department stores’ take on wellness

Bloomingdale’s, too, which kicked off the new year by partnering with digital fitness platform Obé for series as part of the retailer’s virtual “On Screen” events. Bloomingdale’s began selling workout related tools like the Theragun, the handheld massager, while also expanding clean beauty with the “Wellchemist”. Now, Bloomingdale’s latest focus is on “sexual wellness,” a largely online-only selection (found under “beauty”).

At nordstrom.com, “wellness” can be found under the “beauty” category, with items like silk pillowcases by Slip and body products by Nécessaire. But they also sell both female sexual wellness and menstrual health goods.

Macy’s strategy has been on unifying gadgets under what it calls “wellness at home” online, bringing together massagers, aromatherapy, men’s grooming, dental care, hair care and air purifiers at different price points.

Bergdorf Goodman is offering highly curated, luxe wellness.

JCPenney is unveiling its full beauty rollout (which currently includes the Thirteen Lune partnership — an online platform focused on Black and brown-owned beauty products) this fall. The chain (which currently has an “active & wellness” category online for activewear, healthy sleep and eating) is exploring how to restructure wellness merchandise online and in stores.

Saks opens a digital wellness shop 

Department Stores Ride the Wellness Wave