Macy’s Inc. is betting on the booming beauty industry to assist it return to growth.

The department store could also be shrinking its eponymous store offering across the U.S., but it surely’s doubling down on Bluemercury, the luxe beauty retailer it has owned since 2015.

On deck: A major variety of store openings in addition to upgrades to existing doors, plus a renewed emphasis on differentiated brands, upscale locations and the service element that has set Bluemercury apart since its inception. The goal: To make Bluemercury a viable competitor within the North American specialty channel sector, currently dominated by Sephora and Ulta Beauty.

“We’re going to do 30 latest stores and 30 remodels not less than over the following three years,” said Bluemercury CEO Maly Bernstein on a recent Monday at its newly remodeled store in Bronxville, an affluent commuter suburb north of Recent York City. “We’re making a self care escape in probably the most coveted neighborhoods and we’re fastidiously curating beauty rooted in efficacy, craftsmanship, service and education. With our strategy, we’re planning to be the leading luxury beauty retailer.”

Currently, the retailer operates 159 freestanding locations and 19 inside Macy’s shops, almost triple the number it had when it was acquired by Macy’s for $210 million — in money — from founders Marla and Barry Beck. Comparatively, Sephora has 565 freestanding doors within the U.S., while Ulta operates 1,374 freestanding locations.

The Bronxville store is one among two recently opened prototypes that presage what the remodeled and latest stores will seem like. The opposite is positioned in Recent Caanan, Conn. It reopened in October 2023 and early results are positive. 

“Our latest remodels have been well-received and can function the muse,” said Tony Spring, who took the reins as CEO of Macy’s Inc. in February. His remarks got here during an analyst’s call when he was discussing fourth-quarter 2023 earnings and unveiling his latest strategy, called “A Daring Recent Chapter.” 

The plan entails accelerating luxury growth, via Bloomingdale’s and Bluemercury, in addition to shuttering roughly 150 underproductive locations including almost certainly its San Francisco flagship through 2026. The plan was largely applauded by investors. “We expect beauty shall be the simplest a part of this,” said Neil Saunders, managing director of GlobalData, “mainly since it is a fast-growing market where Bluemercury has traditionally underperformed.”

Spring has high hopes that the investments Macy’s is making will further fuel sales growth at Bluemercury, after the sweetness retailer posted its twelfth consecutive quarter of comparable sales growth. Net sales were up 7.8 percent, while comparable sales increased 2.3 percent and its loyalty program, Blue Rewards, grew 19 percent. Compared, Macy’s Inc.’s net sales were down 1.7 percent and comparable sales 5.4 percent lower.

The Bronxville and Recent Canaan stores embody Bluemercury’s strategy, referred to by executives as Recent Blue. Firstly, the undeniable fact that each are in leafy, wealthy suburbs signals the longer term of Bluemercury’s location plans. “For us what works best is once we are in suburban neighborhoods,” said Bernstein, the primary outside CEO to take the reins of the shop. She added Sonoma County has been earmarked for brand spanking new stores but declined to share other potential locations.

This suburban approach is what many brands like about Bluemercury. Elana Drell Szyfer, the CEO at ReVive Skincare, which has been at Bluemercury for the reason that starting, said: “The necessary role that it plays is it’s more local for an area consumer. It’s positioned in necessary luxury environments and neighborhoods and it provides a more personalized feel of an area neighborhood store with a high emphasis on tailoring the shopping experience to what the shopper is on the lookout for.”

Bernstein also favors freestanding stores. So while Sephora and Ulta proceed apace with respective partnerships with Kohl’s and Goal Corp., don’t expect to see a push by Macy’s to accommodate more Bluemercury locations inside its shops anytime soon. “The main target is on the core,” said Bernstein. “Consequently we’re going to be constructing out our freestanding stores.”

When it comes to feel and appear, the brand new format was designed to emphasise the high-touch service element.

The middle bar, which Bernstein had designed to mimic a chef’s table, is where clients shall be offered consultations, tutorials, latest offerings and the prospect to find brands with Bluemercury’s in-store beauty experts.

The world of discovery on the middle bar is known as The Cache, Bluemercury’s initiative that launched in October 2022 to herald up-and-coming brands on the innovative of innovation. It refreshes every 4 months, with the February drop including skincare brands Clark’s Botanicals and Viktor Michael and wellness supplements from Biocol Lab. 

“Ever since they redid it, we’ve now sold out three Saturdays in a row,” said Francesco Clark, the founder and CEO of Clark’s Botanicals and a longtime Bronxville resident, whose bestselling product at Bluemercury is Retinol Rescue Overnight Cream, $150.

“What I really like about working with Bluemercury is that they welcome the undeniable fact that I’m going in store day by day,” he continued. “They really encourage me to go in since it helps me to coach the staff, and establish an emotional reference to the people who find themselves working in store and in addition establish your customer base in a short time.”

Along with The Cache, Bluemercury has shifted its merchandising matrix. This features a bigger-than-ever give attention to fragrance, with brands like D.S. & Durga, Baobob, Trudon, Creed and Maison Francis Kurkdjian.

“Fragrance is a runaway for us because this was not only an expansion, but really an entry into personal fragrances, in addition to more uber luxe home,” said Bernstein. “We’ve also seen loads of excitement for skilled skincare.”

Indeed, Bluemercury has brought in an enhanced number of dermatological skincare solutions from brands including SkinMedica and Obagi, catering to increased consumer demand on this area. In body care, Aesop and Cerulean 6° have joined them mix. And in color cosmetics, Tom Ford, Ogee, Pat McGrath Labs and Sisley joined the retailer.

“As we expand our skilled skincare and luxury fragrance categories, our average unit retail is of course increasing,” said Bernstein, on the pricing strategy. “We’re finding that our clients are prioritizing efficacious products and complex packaging, coupled with our high-touch approach to service.”

Her personal favorites include Vintner’s Daughter Botanical Serum, $195; M61 PowerGlow Peel Extra Strength 20%, $38-$72; U Beauty The Plasma Lip Compound, $68; Sisley-Paris Le Phyto-Rouge Shine in shade Rouge Hollywood, $70; Jan Marini Transformation Face Cream, $125, and Jan Marini C-ESTA Face Serum, $129.

In addition to increasing product offerings, the retailer is using technology to appeal to customers. Magic Touch, for instance, allows customers to carry up mobile phones to blue stickers affixed to products throughout the shop. Like a QR code, that triggers a pop-up, where customer can get more education on the product, then resolve whether or not they want to choose it up in store or have it delivered to their homes. (This is available in particularly handy for puchases like supersized candles from Trudon and Baobab, which cost upward of $650 and weigh a whopping 23 kilos.) 

“Our Recent Blue vision is all concerning the evolution of our omnichannel client experience for the fashionable luxury consumer,” said Bernstein. “We wish our clients to experience our high-touch service and curation for efficacy IRL and URL, as they select. E-commerce is part of our full brand immersion, whether to tailor your samples, book a spa service or access more product education.”

Then there’s skincare services, which Bluemercury has offered since its inception and can proceed to accomplish that. Redesigned spas feature HigherDose Full Spectrum Infrared Sauna, and offerings within the treatment rooms will include signature facials from M-61 Skincare, Bluemercury’s house brand, and partners corresponding to Obagi, ReVive, SkinCeuticals and SkinMedica.

“Our plan is to open spas with one room in most locations, while makeup services and sweetness events — which include on-the-floor facials — shall be offered across all stores,” said Bernstein.

While she declined to share what percentage of consumers receiving services buy products, she said that clients who engage in services are Bluemercury’s most engaged clients.  

Altogether, this approach has been designed so services integrate into the complete brand immersion experience, starting with a consultation on the front, a makeover in the center and the choice to increase the experience with a spa trip in the back of the shop.

“Once we take into consideration what Bluemercury offers we expect concerning the undeniable fact that we take beauty personally,” said Bernstein.