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Sephora

Coordinates: 47°08′30″N 2°15′35″E / 47.141791°N 2.2598276°E / 47.141791; 2.2598276
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For the insect genus, see Sephora (bug).

Sephora SA
Company typeSubsidiary
IndustryCosmetics
Founded1969; 55 years ago (1969) in Paris, France[1]
FounderDominique Mandonnaud[1]
Headquarters41 Rue Ybry, 92200 Neuilly-sur-Seine, France
47°08′30″N 2°15′35″E / 47.141791°N 2.2598276°E / 47.141791; 2.2598276
Number of locations
2,600+ stores[1]
Areas served
34 countries worldwide
Key people
Martin Brok (CEO)
Products
RevenueOver US$10 billion (2019) (estimated)[2]
ParentLVMH
Websitesephora.com

Sephora is a French multinational retailer of personal care and beauty products. Featuring nearly 340 brands,[3] along with its own private label, Sephora Collection, Sephora offers beauty products including cosmetics, skincare, body, fragrance, nail color, beauty tools, body lotions and haircare.

The company was founded in Limoges in 1969[4] and is currently based in Neuilly-sur-Seine, France.[5] Sephora is owned by luxury conglomerate LVMH as of 1997.[6][7] The name comes from the Greek spelling of Zipporah (Greek: Σεπφώρα, Sepphōra), wife of Moses.[8][9]

History

Sephora, Passage du Havre, Paris

Sephora was first launched in Paris in August 1970. It was acquired by Dominique Mandonnaud in 1993, who merged the purchase with his own perfume chain under the Sephora brand. Mandonnaud is credited for designing and executing Sephora's "assisted self-service" sales experience, which separated itself from standard retail models for cosmetics by encouraging customers to test products in retail locations before purchasing.[10][11]

Mandonnaud continued to expand the Sephora brand through the 1990s, opening up its flagship store in Champs Élysées in 1997. In July 1997, Mandonnaud and his partners sold Sephora to LVMH, who expanded the stores globally and bolstered the chain's product offerings to include beauty and cosmetic products.[6] Sephora extended its operation to the Middle Eastern markets in 2007 and has opened over 44 Sephora UAE and KSA stores as well as an eCommerce store.[12][13] It extends its partnership with its exclusive brands in the region.[12]

On 1 January 2014, Calvin McDonald replaced David Suliteanu as president and chief executive officer of Sephora Americas. Suliteanu was named CEO of Kendo Brands, another business in the LVMH portfolio.[14]

Sephora opened its first United States store in New York City in 1998, its first Canadian store in Toronto in 2004 and the first Australian Sephora store in 2014.[15][16] Its North American headquarters is located in New York City, with corporate offices in San Francisco and Montréal. Sephora currently operates over 430 stores across North America.[17]

Sephora, Toronto Eaton Centre, Toronto, Ontario

On 26 August 2016, Sephora opened its 400th location in North America on the Magnificent Mile in Chicago. The store is the city's new flagship location.[18]

On 31 March 2017, Sephora opened its largest retail location in North America near Herald Square in New York City. The store is approximately 11,380 square feet and features over 13,000 products. It's one of six Sephora TIP Workshop locations, with interactive services and tools, in North America; the others include San Francisco, Boston, Chicago, Santa Clara Valley, and Toronto.[19][20][21]

On 19 November 2018, Sephora signed a long-term lease at Thor Equities’ Town Square Metepec, a new retail and entertainment center in Mexico totaling 1.7 million square feet.[22]

On July 26, 2021, Sephora agreed with Palamon Capital Partners the purchase of Feelunique.com,[23] a UK online retailer of prestige beauty goods founded in 2005, with 1.3 million active customers from 120 countries and more than 35,000 products from over 800 brands.[24] It had been acquired from Palamon Capital Partners for £26 million in 2012.[25] The price was rumored to be £132 million.[26]

Operations

Sephora launched its online store in the U.S. in 1999 and in Canada in 2003.[15] The Canadian head office was opened in February 2007 by Marie-Christine Marchives, a former Sephora U.S. and Sephora France employee. Marie-Christine Marchives returned to France in July 2010 to become the general manager of Sephora France. She was replaced in Canada by Klaus Ryum-Larsen. Sephora currently operates over 2,300 stores in 33 countries worldwide,[27] generating over an estimated $4 billion in revenue as of 2013.[6][28] As of September 2013, the Sephora at Champs Élysées in Paris, France, attracts over six million people a year.[29] Afterpay and Sephora partnered to offer its customers the flexibility to pay in four installments on July 13, 2022.[30]

Brands

Sephora features a variety of beauty products from more than 300 brands, including NARS Cosmetics, Make Up For Ever, Too Faced Cosmetics, One Size, Fenty, Milk, Bite Beauty, Anastasia Beverly Hills, Coto Beauty, Urban Decay, Benefit Cosmetics, First Aid Beauty, Lancôme Cosmetics, Sunday Riley Skincare, philosophy, Jo Malone London, Atelier Cologne, YSL Beauty by Yves Saint Laurent, Tatcha,[31] Huda Beauty, Kat Von D, and Bobbi Brown Cosmetics.[32] Sephora also features its own make-up, skincare, beauty tools and accessories under the brand name Sephora Collection. Packaging for the line previously featured the company's elongated flame logo in standard black print. The new logo features the updated "Sephora Quality, Really Good Price" logo with the $ sign.

In 2010, the company debuted fragrance collections with Mary-Kate and Ashley Olsen, known as Elizabeth and James, and a makeup line with Marc Jacobs.[33]

On the 25th of June 2020, Maddie Ziegler's imagination collection collaborated with Morphe launched in Sephora Canada.[34]

Sephora inside JCPenney

In October 2006, Sephora began opening stores inside JCPenney. Sephora inside JCPenney features some of the same makeup, skincare, and fragrance brands as well as its own product line found in stand alone stores nationwide. Sephora inside JCPenney stores are much smaller than a normal store, usually 1,500 sq ft in size.[35] As of 2017, there were more than 600 Sephora locations in JCPenney stores across the US.[6][36][27] That same year, JC Penney announced the closing of 138 stores nationwide, several of which house a Sephora in JCPenney store.[37]

Sephora inside Kohl's

In December 2020, Sephora announced that it would begin opening Sephora stores inside Kohl's locations. The announcement included plans to launch Sephora at 850 Kohl's stores by 2023.[38] The first four Sephora inside Kohl's locations opened on August 6, 2021.[39]

Subscription service

In August 2015, it was announced that Sephora would launch a subscription service: Play! By Sephora. The monthly subscription service offers boxes containing sample size products for a monthly fee.[40] Boston, Columbus, and Cincinnati were the only three cities to test the initial service launch in September 2015. The service was launched throughout the US in 2016.[41]

For $10 USD billed monthly, each month’s box is a collectable bag that changes each month with five deluxe skincare, makeup, or haircare samples. Each box includes a selection of products based on answers provided by the customer in PLAY! profile.[42]

Sephora terminated PLAY! in April 2020, replacing it with Sephora Luxe. Like Play!, Luxe gives the opportunity to sample products, but Luxe is ordered monthly and is not a subscription service.

Sephora UAE and KSA

Sephora UAE and KSA are regional subdivisions of Sephora. The Middle East head office was opened in February 2006 by Pierre Fayard. Since 2007, over 30 separate Sephora stores have opened across the Middle East region (UAE, KSA, Bahrain, Qatar, Kuwait). Sephora UAE and KSA provide make up and skincare products from notable brands such as Christian Dior, Laura Mercier and Kat Von D[43][44] in a high tech contemporary retail environment.[45] Sephora’s first Middle East store opened at Seef Mall in Bahrain on 7 January 2007 followed by Festival City, UAE on 1 March 2007 with a further 30 stores opening across the region since.[43] The Sephora store in the Dubai Mall opened in December 2008 and is now[when?] ranked as the company’s number one store worldwide. In 2007, the late Sephora CEO, Jacques Levy expressed a desire to have 100 stores open across the region by 2010. A year later the international financial crisis derailed these ambitions. Levy stepped down in 2011 and died a year later.[46] Despite this early setback Sephora have opened more than 30 more stores and introduced online shopping to the region in November 2016.[47][48] In December 2017, Sephora opened ‘Gifts Beauty Park, the world's first beauty Festive playground in Dubai.[49] The pop-up store featured fairground and makeup themed games and invited shoppers to sit down with professional Sephora makeup artists to experience the products.[49] In March 2018, Guillaume Motte was announced as the new president of Sephora Europe and Middle East.[50]

Sephora North America

Sephora USA was launched in 1999 and Sephora Canada in 2003.[51]

Sephora storefront in Dalma Mall

Sephora Singapore

Sephora Singapore was launched in December 2008.

Products

Sephora’s Middle East stores stock internationally renowned products by the like of Estée Lauder and subsidiary Clinique, alongside local brands such as Shiffa Dubai Skin Care and Huda Beauty.[52] According to Forbes, Huda Beauty, founded by Dubai based blogger and business woman Huda Kattan, was the top selling cosmetic brand across Sephora Middle East, in 2018.[53]

Applications

In 2016, Sephora launched its own all access tablet and smartphone application Designed "made manifest" by Dennis Hornstra, a software and application designer for Apple. It can be seen as an augmented reality platform. Pocket Contour, one of the digital programs that was rolled out, teaches users how to contour their skin step-by-step depending on their face shape.[54] By uploading a photo, the user can receive a virtual makeover, experimenting with different product and shade combinations.[55][56][57]

Acquisitions

In 2000, Sephora.com purchased the assets of Eve.com for "high six-figures".[58][59]

Controversies

In April 2019, R&B singer SZA accused the store of racial profiling. On May 23, 2019, Sephora announced they would be closing all locations on Wednesday, June 5, 2019, to hold diversity training for its staff. However, the staff training was a part of their "We Belong To Something Beautiful Campaign" and not the accusations from the singer. The planning and training for this campaign began in late 2019.[60]

In February 2020, an ex-employee of Sephora launched a website accusing the store of bullying culture, mishandling of staff complaints, and wage theft.[61]

Lawsuits

On 18 November 2014, four customers filed a class action lawsuit against Sephora.[62] The suit alleges that Sephora engaged in racial discrimination by wrongfully deactivating the customer rewards accounts of Asian customers under the pretense that these customers were buying products from Sephora in bulk and reselling them.[63][64] Sephora identified accounts to deactivate by looking at email domains from @qq.com (owned by Tencent), @126.com, or @163.com (both owned by NetEase).[65]

Environmental record

Sephora’s sustainable development initiatives were recognized in December 2015.[66] The company received the Sustainable Brand label, as well as the 2015 R Award for eco-design by the Génération Responsible association. Global Cosmetic News reported that Sephora's newly launched display cases have a 30% lighter metal frame that will reduce CO2 emissions by 220 metric tons.[67]

In 2020, Sephora announced it would no longer carry eyelashes made of mink fur, which has been shown to come from farms where animals are mistreated. The company said it was compelled by concerned customers and a PETA campaign to sell only synthetic lashes.[68]

Social responsibility

In June of 2020, Sephora announced that it would take the 15 Percent Pledge, pledging to fill 15 percent of their shelf space with Black-owned businesses.[69]

Awards and honors

In 2010, Women's Wear Daily named Sephora the specialty retailer of the year.[70][71]

In March 2018, FastCompany named Sephora to the number 36 spot (of 50) on their list of "World’s Most Innovative Companies", citing its expanded offering of broadly diverse and inclusive product lines like Fenty Beauty.[72]

See also

References

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  2. ^ "2019 Financials".
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  4. ^ Tungate, Mark (2011). Branded Beauty: How Marketing Changed the Way We Look. Kogan Page. p. 188. ISBN 9780749461812.
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  8. ^ and Hebrew Zipora comes from the word Zipor which means bird. @sephora on Twitter
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  69. ^ Pledged Companies - 15 Percent Pledge [1]
  70. ^ "WWD 2011 Beauty Inc Awards: Retailer of the Year". Women's Wear Daily. 8 December 2011.
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  72. ^ "Sephora Is Bringing Shade To The Make-Up Industry". Fast Company. 6 March 2018. Retrieved 28 March 2018.
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