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Retail therapy: How Sephora reinvented the in-store experience

As part of Retail Focus The Drum, we meet with retail professionals to find out which brands deliver the most exciting in-store experiences.

The Sephora brand, owned by LVMH, opened its first store in New York’s SoHo district in 1998 and currently operates over 2,700 stationary stores in 35 countries around the world, including over 500 in the Americas alone. The brand also operates a world-class e-commerce platform.

So what does Sephora do so well in stores, and why should all retailers reach out to its makeup bag for tips?

Sephora consistently demonstrates a deep understanding of how to create a great retail experience in the rapidly changing landscape of the global beauty industry. Despite the growing dominance of online shopping, Sephora’s physical stores continue to attract acclaim and huge crowds, as evidenced by the recent megastore opening in Manchester, which saw over 2,000 people queuing outside to be the first to set foot in the shiny new store.

Retail professionals generally agree that Sephora’s success can be directly attributed to its strategic integration of digital innovations into the store experience. This effectively creates an immersive and interactive environment that develops an emotional connection between the brand and the consumer, keeping them coming back for more. For many, it seems that a trip to Sephora is like a trip to Disneyworld, but without the roller coasters.

Samaneh Zamani, chief strategy officer at Iris, highlights Sephora’s mastery of omnichannel experiences, noting that the brand is at the forefront of bringing the influential role of social media to the physical space.

“Sephora is a great example of a retailer that continues to lead in brick-and-mortar sales,” he says. “Despite the success of online brands like Cult Beauty, Sephora’s physical presence continues to dominate with omnichannel experiences specifically designed to bring the influential role of social media to the physical space.”

In 2023, Allen Adamson, co-founder and managing partner of New York-based agency Metaforce, published Seeing How: Achieving Market Advantage by Transforming the Stuff We Do, Not the Stuff We Buy, which focuses on consumer experience as a competitive advantage. The book was written after Adamson noticed that experience transformation was surpassing product transformation as a winning business strategy over the past few years. Retailers are paying attention.

“Retail has continued to evolve over the last five years, and when taken in isolation, the changes may seem small,” says Adamson. “But when we take a step back and look at these changes together, the transformation is striking. The integration of digital and physical retail has become almost seamless, offering consumers a variety of options such as buy online and return in store, buy online and pick up in store, try on products in store before buying online, self-checkout, and using smartphones to scan products to for further information. The emergence of artificial intelligence will further accelerate these changes, revolutionizing the retail landscape.”

He adds: “Many retailers follow a similar pattern, but Sephora is a great example of cutting-edge innovation. Sephora “Move It.” Inspired by Tinder, the Shop it campaign engages customers through an interactive experience where they can express product preferences by swiping left or right. The brand’s smaller Studio locations offer personalized services and an intimate shopping environment. Sephora creates a captivating retail journey that builds customer loyalty across multiple touchpoints by seamlessly integrating advanced technology, interactive campaigns and customized store designs.

Gary Jacobs, creative director at Live & Breathe, which counts Morrisons, Avolta and Company Shop as retail clients, agrees that what Sephora has been particularly successful at is combining digital and physical brand experiences into one streamlined experience – basically discover it online, live it and buy it in store. “In an ever-changing retail landscape, Sephora stands out as a shining example of a unique brick-and-mortar retail experience,” he comments.

“While the beauty industry’s success is often attributed to the rise of social media, Sephora’s innovative approach to omnichannel retailing has been absolutely key. Its stores are more than just places to buy products; are immersive environments where beauty enthusiasts can explore and express themselves.”

Via’s head of strategy, Sarah Blais, agrees that the way Sephora blurs the lines between digital and physical is the biggest secret to its success and why customers love the brand and are willing to spend hours queuing outside waiting for the doors to open. they will open. “When it comes to navigating the vast world of beauty products, the online landscape can be overwhelming. This is where Sephora physical stores really shine. Entering Sephora is like entering Willy Wonka’s factory of cosmetic delights, where in every corner there are hidden treasures waiting to be discovered.

“Her experienced beauty advisors offer personalized guidance like trusted confidants, not pushy salespeople. Through in-store services and an open sales concept, customers can engage their senses and explore a curated selection of both established brands and emerging favorites. The seamless integration of in-store experiences with cutting-edge digital advancements sets the standard for omnichannel retailing, with brick-and-mortar retail at its core.”

Visit Sephora’s website and if you can bear to walk away from all the beauty elixirs and balms, click “About Us” and you’ll see that Sephora is committed to being a leader in prestige retail. According to our experts, the mission has been accomplished.