Ulta Beauty, Cos Bar, C.O. Bigelow, Bluemercury And More Weigh In On The State of Beauty Retail Today

Following a blockbuster 2021 that saw retail sales soar higher than they had in over two decades, it seems retail’s rebound is in full swing.

Brick-and-mortar traffic is returning to pre-pandemic levels, and store openings are outpacing store closures. Retailers are refining their digital and omnichannel offerings to serve customers at every touchpoint. Still, consumer behavior has been transformed amid the pandemic and undoubtedly isn’t finished evolving. As we wade into a future in which coronavirus could become a chronic challenge, retailers continue to face uncertainty.

Against the backdrop of the shifting retail landscape, for the latest edition in our series posing questions relevant to indie beauty, we decided to ask 13 retailers the following question: What do you think about the state of beauty retail today?

Romain Gaillard Founder and CEO, The Detox Market

Even though each store is experiencing a different dynamic, clearly consumers are coming back into stores and integrating now that COVID is here to stay, and we are learning to live with it.

When coming into stores, our clients are eager to go back to normal and try products. The personal connection with our Detox ambassadors is also super important. Many clients are tired of ordering online and connecting via Zoom or FaceTime when they can come in to the store to buy something that they know will work for their skin.

Tracy Kline SVP of Merchandising, Services and Supply Chain, Bluemercury

The early part of the pandemic shifted consumer behavior digitally. However, with things opening up, consumers are embracing an omnichannel future with the seamless integration of digital and physical. The convenience and speed that we’ve come to expect during the pandemic are the expectations now going forward.

In addition, customers are eagerly shopping in person again like they did pre-pandemic, but with heightened expectations such as expanded fulfillment options, plus accuracy in data for where to find the highly sought-after products.

While in-store services are starting to regain popularity, it’s still connected to the digital experience, from online scheduling, text reminders and the like. Digital experiences like virtual masterclasses remain popular as well. So beauty retail, like all retail, is now omnichannel, and retailers need to deliver upon customers’ evolved expectations. 

Jeannie Jarnot Founder and CEO, Beauty Heroes

We are hopeful that COVID-19 will become an endemic issue that is manageable, but, if there’s one thing the pandemic has taught me, it’s that everything is unpredictable. But, for the moment, we are seeing an incredible sense of relief and back-to-normal levels in our Northern California brick-and-mortar store.

We also have one treatment room where we offer skincare services and are consistently booked. We have been very strict and cautious with our protocols throughout the pandemic, and I think, because of that confidence, we have earned from our customers, and the fact that we have only one treatment room that is not high traffic, people feel comfortable coming in for services.

We are leaning into in-person experiences right now and creating an in-store experience that make people want to come in and come back to our store. We have held several small events in-store, and they have all been extremely well attended, including a founder event with Alexis Rose of Lilfox and a Beauty Heroes Bay Area member appreciation event where subscribers come in-store to meet us and pick up their boxes in-store.

In April, we are testing a bulk product refill station with Meow Meow Tweet and Bathing Culture. We have also had several private makeup parties for women who have bought out the space for a private event, led by our director of makeup. These small-scale events have been engaging and fun ways to get people re-accustomed to in-person events. We plan to build on this momentum, providing it is safe to do so and hope to hold an larger in-person event later this year.

We are not looking at replacing physical testers, but rather staffing our store in a way that we can assist our customers with swatching products safely. Beauty is meant to be felt, touched and experienced. While I think digital technologies are great for at-home shopping and try-on, I think that people are coming into a store to have a more sensory experience, with sanitation and safety protocols in place, of course.

Ian Ginsberg President, C.O. Bigelow

No one really knows what the future has in store, but we hope for the best and plan for the worst. As a 184-year-old retailer dedicated to personalized service, we have always felt—and feel even stronger now—that after two years of sitting in front of a computer screen, our customer doesn’t want to come into our environment and play with computers.

As the city and the mood has opened up, they are thrilled to come and play and talk with our team. Throughout the pandemic, we have kept our environment “touchless” and have always felt that we would let the customer decide when they were ready.

Over the last few weeks, we have begun to display our testers slowly and have begun to do more application. We are, of course, doing more to make sure everything is cleaned and sanitary on a continual basis and, while some customers are still reluctant, there are plenty that are beginning to engage.

It’s still a slow process, but we are hopeful that, as the weather warms up and tourism begins to expand, we will start to expand our services with the hope that we can get a bit closer to normal. While we are all cautiously optimistic about the future, we all know that we could face another COVID-endemic in the future. Hopefully, we’ll find that subsequent variants are not as dangerous as what we’ve seen, and we will all learn to adapt as things progress.

For now, we have to try to create a safe environment for everyone and will follow their lead. We can only be optimistic and make everyone feel comfortable and hope for all good things in the future.

Oliver Garfield CEO, Cos Bar

The state of beauty retail in a COVID-endemic future will look far more similar than dissimilar to a pre-COVID world. Some may not find that very interesting, which is understandable, though largely what provided customer satisfaction and loyalty has stayed the same.

That said, I believe we can all personally relate to poor experiences we’ve had in a post-COVID world within hospitality, F&B, retail, etc., and it’s mostly a result of understaffing or poor employee morale or training. This is a roundabout way of saying that finding great customer service is harder now than ever and, unfortunately, I think customer expectations are lower. Conversely, if a customer is given an excellent experience they notice, then that will serve the differentiators very well in a COVID-endemic future.

I can share 2021 was the best B&M comp year ever for Cos Bar (versus 2019) and, if February and March are any indication, then 2022 will be another record year (versus 2021) by strong double digits. I say this because we’re focusing on retail basics in partnership with our brands that have excellent field and sell-through teams, and it’s obviously working.

Nick Stenson SVP of Stores and Service Operations, Ulta Beauty

The beauty landscape is dynamic and constantly evolving. Amid the consistent innovation we’re seeing across the category, we also know the consumer journey is no longer linear, and they now expect physical and emotional experiences when shopping for beauty as well as hyper-relevant content served to them fluidly across platforms.

Discovery and play are hallmarks of beauty and technology has allowed us to get even more personalized. We’re seeing this come to life through AI/AR powered tools like our GLAMlab virtual try-on and Skin Analysis capabilities within the Ulta Beauty app, which allows guests to swatch, shop and discover tailored recommendations from wherever they are.

Ulta Beauty guests have loved these tools as safe, convenient ways to try before they buy, and they continue to engage them as part of their routines. We believe this innovative technology will be mainstays of the category and know people will continue to leverage tools that provide convenience and simplicity.

The experiences we’ve created within our app, our stores, curbside pickup, and same-day delivery services via DoorDash will only continue to evolve to meet our guests’ beauty wants and needs.

We also know consumers today have higher expectations for companies to reflect their values, and are seeking products, content and experiences that authentically align with their interests. As a values-based company, Ulta Beauty acts in ways that reflect those critical differentiators and our beautifully diverse guests.

Additionally, as consumers become increasingly more aware of the products they use, we continue to educate, guide and simplify by providing guests greater choices and transparency through Conscious Beauty at Ulta Beauty, while also creating a positive impact for the industry and our world.

Jazmin Alvarez Founder and Chief Curator, Pretty Well Beauty

I think that consumers who have already shifted to a more conscious way of buying beauty products will continue their normal buying behavior in terms of what they are buying but perhaps the frequency might slow down because of that sense of uncertainty economically. I think those customers who were still in that exploratory phase and just starting to out with buying clean beauty are becoming slower to convert for the same reasons.

The skincare and haircare categories are still the best performing overall. The category that I’m seeing gain more and more interest are products that promote hair growth. So many people who caught COVID unfortunately started to suffer hair loss as a result and are looking for ways to re-grow their hair or prevent shedding. I’m seeing less makeup being purchased, which I think can be attributed to a variety of reasons due to the pandemic.

Chelsy Gray Founder and CEO, Adaya Beauty

I think beauty in the future will be more inclusive and exciting! I think buyers are more conscious about the brands they support and the impact of the products they buy has on them, inclusive of skincare down to wellness ingestibles.

I think the customer wants the flexibility to shop the best way that suits their personal needs without limitations. I do believe more curated services will be in demand in the future and even now.

Dara Kennedy Founder, Ayla

What we’ve seen is that, broadly speaking, trends towards personalization in the retail experience have continued. This doesn’t necessarily mean that everyone’s looking for AR try-on technology (though it certainly could in some cases), but that customers are generally looking to retailers to provide an experience that fits their personal needs and wishes more than ever before.

This could mean flexibility in terms of delivery (e.g., online order pickup), a variety of ways to interact with customer service (e.g., video/phone/in-person guidance), opportunities to support purpose-driven brands or a COVID-conscious environment that helps them feel safe while they shop, for example.

In many ways, I think it mirrors the trend towards flexibility in workplace environments to better fit employees’ needs. Similarly, shoppers are really looking for retail experiences that fit their specific needs. Those needs vary from person to person as well as from purchase to purchase. More than ever, I think it’s vitally important for retailers to be open to customer input and specific about what they offer.

Marti Moore Founder, Melanin Grace

Since the pandemic, customers have been more discerning about where they shop. Consumers support authentic and transparent businesses, allowing them to see inside the brand and align with the founder and their values. E-tailers must offer the customer new ways to engage with the founder and the products and services through one-on-one interactions.

With the weather transitioning, the beauty customer is ready to refresh their beauty wardrobe. They want to lift their sense of well-being and experience joy, whether that's through makeup in pretty colors like check+lip tints, lipsticks and blush or skincare in colorful packaging. Customer interest is shifting from DIY skincare to products with color.

Kathryn Murray Dickinson Owner, Aillea

Customers are definitely excited to be back out and shopping in person. Our customers have always loved to see, touch, feel, smell and experience the products, and they are thrilled to be able to do that again.

Everyone is enjoying facials and waxing again, as well. While we started slowly with facials and waxing (two days a week), we have been adding days back in to the schedule to meet the increasing demand.

Susana Kempen Owner, Daisy Organics

During the beginning stages of the pandemic, we saw a large rise in sales for all self-care treatments and tools. For example, facial rollers, gua sha tools, face masks and relaxation treatments or tools have continued to trend.

Now, as people have began to get out more, makeup sales have been on a steady rise. However, self-care treatment and tools have remained high. This buying trend shows that consumers have found the benefits of self-care routines at home and will continue them moving forward.

Larissa Thomson Co-Founder, Onda Beauty

In-store services at Onda are certainly gaining traction. However, we started to notice treatments picking up about a year ago, really almost back to normal.

We’ve always had a strong protocol in place (during the pandemic through to present endemic) such as the Ionopure air purifiers we use in all our treatment rooms, which truly work at killing a high percentage of airborne viruses.

Our customers come to us because of our bespoke treatments, but they also want to be touched. We believe that human touch is powerful and can be the solution to many ailments, whether a broken heart, overabundance of stress or muscles and skin that are in need of some expert TLC.

Self care is not a passing trend, it’s a necessity for a well-balanced life. When you start caring for yourself, you wonder and question why you maybe neglected your well-being in the first place. There is an increasing acceptance and understanding of this positive lifestyle shift, collective consciousness perhaps.

Hence, the increased sales for all things body in particular - scrubs, body oils, rich creams, bath soaks, etc. We also saw a huge increase in the demand for massages and other body work with add-ons like body brushing.

Of course, our facial treatments have also picked up with a strong focus on facial massage, gua sha, cupping and other facial techniques that use various modalities that help to release the muscles of the face and increase circulation and lymphatic drainage. We expect to see this continue.

If you have a question you’d like Beauty Independent to ask beauty retailers, entrepreneurs, executives and experts, please send it to editor@beautyindependent.com.