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TREND #2


Wizz Selvey ‘‘


purchases via contactless curbside pick-up. Nevertheless, Covid-19 has clearly accelerated the desire to shop more locally. The Westfield report found that a growing sense of community has never been more present as people have come together to support their local areas, while consumers are also looking to shop more locally to reduce their carbon footprint. Selvey adds a further factor: “I think more people will work from home a couple of days a week, and although they will still want to go to the cities, they will go more as a treat, rather than being there every day working. So I think the local high street will see a revival.” Local or community initiatives are now on the radar for many retailers and the trend is rippling through the entire landscape. At grocery level, UK chain Sainsbury’s has opened a string of neighbourhood hubs, with stores planning to play an active role in charities in their local areas. In the US, department store Bloomingdale’s has announced that it will be opening a number of small-concept ‘Bloomie’s’ stores, which could act as locations for online order fulfillment as part of an increasing focus on building a frictionless, omni-channel experience. The first will be a 22,000sqft store located in Fairfax, Virginia, when it opens this autumn, featuring beauty, retail, entertainment, dining and fitness.


I think the opportunity for stores is to collaborate with more brands or other retailers to improve the density of their


footprint Wizz Selvey, founder and CEO, Wizz&Co


The power of collaboration Being where the consumer wants to shop and offering them the conveniences that they now expect have become crucially important factors for physical stores, and by bundling these benefits into new types of formats, retailers have an opportunity to reposition themselves for stronger performance.


There are many further ways that this can be explored. Selvey says: “I think there’s still an opportunity for retailers to collaborate more, and pop up within each other’s shops and I think there will be more hybrid partnerships as fashion brands start to bring beauty in as an additional


Nordstrom Local service hubs expanded to Los Angeles in 2020


category, because they know that it’s a really easy way to add more revenue into each sale.” Next exemplifies the gains to be made in combining the two – its ‘Branded Beauty’ business grew strongly over the past year, taking 6% of total sales compared with 4% in 2019, while the retailer has also opened four Next Beauty Halls in former Debenhams stores. Selvey says: “Next is one to watch for sure. I think it will be one of the biggest players in beauty in the next few years. It is already number one for fashion, for kids and for home in the UK, and has positioned its stores in a really interesting way. There are some big out-of-town stores, but a lot of them are just in really convenient places, so they can service the customer well and act as hubs for click & collect and returns.”


RETAIL SPOTLIGHT: ULTA BEAUTY X TARGET


Ulta Beauty tells Cosmetics Business how its new shop-in-shop partnership with Target will help it respond to the changes in how consumers want to shop beauty


“We know consumers will always expect engaging, fun beauty shopping experiences – balanced now with safety and convenience. Knowing guests move across digital to physical shopping more effortlessly than ever before, we have been working for some time to enhance our omnichannel strategy to deliver greater experiences within our dynamic, growing category. The pandemic accelerated that work and our partnership with Target is a strong example of leveraging an opportunity to further disrupt and redefine the beauty experience. Ulta Beauty at Target will unlock new, seamless shopping opportunities and will give guests increased access to prestige beauty brands, expert-trained beauty consultants, and rewards – while deepening our loyalty with existing Ulta Beauty guests.”


If the current buzz in retail is about convenience and shopping locally, what does this mean for shopping malls? Last year’s announcement that Intu, the owner of some of the UK’s biggest shopping centres including the Trafford Centre in Manchester and Lakeside in Essex, entered administration, while Coresight Research predicts that 25% of malls in the US will close over the next three to five years. However, Selvey says: “I think certainly in the UK, some of the out-of-town shopping centres will excel and some will dwindle. I think there has probably always been too many, but the ones that are really strong, that provide a destination with lots of space and act as hybrid of shopping and leisure, are the ones that will continue to perform”


ACTION POINTS


Expect to see more beauty shop-in-shop concepts, pop-ups and concessions within all kinds of outlets, from department stores to fashion retailers.


Mini stores and local hubs that play a role in consumers’ communities are a way forward for physical retail, tapping into the trend for consumers to shop local during Covid – a trend that is expected to stick even after restrictions end.


cosmeticsbusiness.com


May 2021 cosmetics business 9


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