Creating a cosmetics and perfume luxury supermarket.
The Challenge Sephora was founded in 1969 as a cosmetics chain, but by the early 1990s it was languishing with an old-fashioned retail model of assisted sales, which was limiting sales volume. In 1993, with a portfolio of 40 stores, Sephora asked us to relaunch its retail model to take a leadership position in cosmetics retailing. Our Approach We created a revolutionary concept in the industry: a cosmetics and perfume luxury supermarket. Women could now browse at their leisure through the store and experience the look and smell of products at their own pace, uninterrupted by the intrusive approaches of sales consultants. The Solution A sense of the monumental was key to the brand experience, as was creating a “cathedral of beauty.” Freedom and pleasure were the watchwords of the shopper experience, resulting in a hands-on, selfservice shopping environment. People were free to touch, smell, and experience the products, from fragrances and makeup, to bath, body, and skincare. Business Results Sephora is now a global retail icon, having succeeded in redefining the rules of the beauty market. The flagship store on the Champs Élysées was opened in 1996 with 350,000 clients per week—that’s the same number of visitors as the Eiffel Tower. In its first year, the store earned revenues of US $150 million. The brand was acquired by LVMH in 1997 and opened its first store in New York in 1998. What began as 40 stores is now a network of 400 stores in Europe and 1,000 worldwide. Sephora is now the leading retail beauty chain in Europe and is stretching its global presence into Asia.