Nordstrom is taking aim at young millennial and gen Z consumers with a new beauty and lifestyle assortment.

Featuring apparel and accessories along with beauty, the assortment contains makeup, skincare and nail brands such as Kiramoon, Kaja, Le Mini Macaron, Neen, Fresh, Kylie Cosmetics, Tenoverten, First Aid Beauty, Grande Cosmetics, Blume, Inked by Dani, Labomme Beauty, Too Faced, The Ordinary and Melt Cosmetics. Nordstrom declined to comment on the assortment, which is rolling out to six stores this month in Chicago, Tampa, Washington, D.C., Bellevue, Wash, and the California cities San Francisco and Brea. The footprint could expand next year. 

The assortment has a presence on Nordstrom’s website in a “Young Adult Beauty” section within the online beauty department. The section comprises over 800 products like First Aid Beauty’s FAB Skin Lab 10% AHA Resurfacing Liquid, Grande Cosmetics’ GrandeHAIR Enhancing Serum, Kaja’s Juicy Glass Lip Oil and The Ordinary’s 100% Organic Cold-Pressed Rose Hip Seed Oil.

Juicy Glass Lip Oil

However limited, the assortment is the latest effort by a department store retailer to claw back market share in the beauty industry and be relevant to younger shoppers, who’ve turned TikTok Shop in the ninth largest beauty retailer in the United States, according to according to consumer insights firm NIQ, and are at the heart of beauty specialty retailers’ business. Data from the management constancy McKinsey & Co. pegs department stores’ share of global beauty sales at 8% last year versus 22% for e-commerce, 20% for specialty retail and 16% for grocery.

As department store retail counters fierce headwinds, Kelly St. John, founder and CEO of beauty brand consultancy KSJ Collective, believes trying to woo younger beauty consumers is a smart move for Nordstrom. “The 18- to 27-year-old demographic is growing their discretionary spending, which averages about $2,000 per year, and beauty is an easy and exciting way for them to engage,” she says. “Research shows that 50% of gen Z is willing to cut spending in other areas so they can spend more on beauty. There is tremendous opportunity in this segment of the market, and if done right, I think it could be highly successful for them.”

Nordstrom is courting young beauty consumers from a stronger position than its department store retail competitors. Thirty-three percent of the customer base at Nordstrom and off-price offshoot Nordstrom Rack are millennials, per data obtained from market research firm Numerator by CNBC. Gen Z accounts for 7% of Nordstrom’s customers. Millennials constitute 24% of Macy’s namesake customer base, excluding higher-end concept Bloomingdale’s and beauty concept Bluemercury, and 23% of Kohl’s’ customer base. Six percent of Macy’s shoppers are gen Z.

Nordstrom’s new assortment is also an effort to bring smaller brands into department store retail, traditionally a cost-prohibitive environment for them. “It’s an ideal scenario for us because we can test before scaling and investing in massive amounts of inventory,” says Lindsey Martin, founder and CEO of skincare brand Kiramoon. “But there are definitely extra costs like marketing programs, in-store support, co-funded promotions and display fees. It’s so important to understand the overall costs before agreeing to any retail partnership.”

Nordstrom represents the only place consumers can pick up Kiramoon in brick-and-mortar stores at the moment, but it’s sold online at Amazon and Anthropologie. The department store retailer isn’t going in blind with the brand. Kiramoon outperformed well-established competitors in a holiday gift selection at the chain in 2021. Nordstrom’s new in-store assortment carries three of its hero products—$45 Star Jelly Magic Resurfacing Facial, $28 Silkie Rinse Gentle Hydrating Cleanser and $36 Flowermelon Super Hydra Serum—and two of its skincare tools priced at $24 and $42. 

Christina Kao, co-founder and co-CEO of Le Mini Macaron, theorizes the nail gel brand’s vitality on platforms like TikTok is why it was placed in Nordstrom’s new beauty assortment. The assortment has nine stockkeeping units priced from $3.75 to $38 from Le Mini Macaron: six shades of its gel manicure set, gel remover wipes, a top coat and remover tool. The brand has been stocked on Nordstrom’s site and in its stores every holiday season since 2021. Outside of Nordstrom, it’s available at Target and Ulta Beauty,

Kao is hoping the assortment will expose Le Mini Macaron to discovery-seeking consumers. “The consumer will be in a different mindset, simultaneously shopping for fashion and accessories,” she says. “I think she will be really open to product discovery and trying new things, and the entire program is trend-led, so I believe it’ll be very fun, engaging and inspirational.” 

“The entire program is trend-led, so I believe it’ll be very fun, engaging and inspirational.”

The new assortment comes as Nordstrom is regaining its footing following two years of lackluster sales. Inclusive of Nordstrom and Nordstrom Rack, net sales climbed 3.4% to $3.8 billion in the second quarter this year, and same-store sales increased 1.9%. Beauty, activewear, women’s apparel and kids powered top-line growth during the quarter. Earnings fell to $122 million from $137 million in the year prior. Nordstrom operates 93 flagship department stores and 258 Nordstrom Rack stores. 

Boosted by the positive performance, Nordstrom raised its full-year guidance from a previous forecast of a 1% same-store sales dip to a 2% same-store sales gain. Shareholders were encouraged by the results, and the retailer’s stock price spiked 6.5% during after-hours trading on Tuesday last week. 

Although Nordstrom’s recent results compare favorably to its department store peers Macy’s, Kohl’s and Dillard’s, its multiyear trajectory has been nothing to cheer about. The department store retailer’s sales are more than 5% under its 2022 sales, and it’s contended with choppy consumer spending and the closure of its Canadian division last year. According to market insights firm GlobalData, sales in Nordstrom’s department store division are down 9.3% in a two-year period. 

In a statement, Neil Saunders, managing director of GlobalData, says, “We think there are areas of progress such as better beauty sales and more emphasis on casual styles, but general market dynamics remain firmly set against the full-price business and Nordstrom is still losing share relative to the wider market.”  

As a result of long-term struggles, Nordstrom announced in April that CEO Erik Nordstrom and president and chief brand officer Pete Nordstrom were looking to take the company private and formed a special committee to assess potential proposals. Together with Mexican luxury retailer El Puerto De Liverpool, which acquired a 10% stake in Nordstrom in 2022, the Nordstrom family offered to buy the company on Wednesday for $23 a share. The offer values the retail chain at approximately $3.76 billion.

To attract young millennial and gen Z shoppers, St. John underscores Nordstrom must execute on location, pricing, experience and social media outreach. “The pilot stores look to be in strong mall-based locations where the younger customer is drawn to,” she says. “But I cannot emphasize enough how important social media will be to garner success. Leveraging TikTok and even Snapchat will be paramount in continuing to nurture awareness amongst gen Z. These two platforms dominate the way they communicate and must be integrated into the overall execution of this new concept.”

Taylor Barry, co-founder of agency Brand Uncover, agrees marketing will be essential for the traction of Nordstrom’s new beauty assortment. “The other component to consider is product safety,” she says. “It’s important to prioritize ingredient integrity and provide solutions that are gentle and effective for this age group. Messaging needs to reflect this information so that consumers can feel confident bringing these products into their home.” 

Before its latest assortment, Nordstrom had been striving to keep its beauty department fresh. In the past year, it’s launched several beauty brands in its stores and online. Cellcosmet, Dr. Diamond’s Metacine, Oak Essentials, Rizos Curls and Dr. Lara Devgan are among them. It’s extended the Facial Sculpting Studio, an in-store installation showcasing skincare device brand NuFace, by two additional locations. Nordstrom Rack partnered with British beauty retailer SpaceNK on a haircare-centered assortment in 200 doors.

“Beauty consistently has had a solid performance for Nordstrom,” Debbi Hartley-Triesch, EVP and GMM of beauty and accessories at Nordstrom, told the publication Women’s Wear Daily last year. “We work on curating the best selection and that selection is through prestige, as well as emerging brands. It’s all price points: we want to be a leader in beauty.”

This story was updated with new information on Thursday, September 5.