Beauty retailers fall after Amazon unveils professional beauty store
Category: #headlines  By Mateen Dalal  Date: 2019-06-25
  • share
  • Twitter
  • Facebook
  • LinkedIn

Beauty retailers fall after Amazon unveils professional beauty store

E-commerce giant Amazon recently announced the launch of Amazon Professional Beauty Store, intended to sell beauty products used by licensed stylists, beauticians & barbers. Followed by the announcement, shares of many specialized beauty retailers fell, report sources.

Shares of Sally Beauty holdings (an American international specialty retailer and distributor of professional beauty supplier), sank by 17%, while those of Ulta Beauty Inc. (a chain of beauty stores in the United States) fell about 3%. 

This move by the world’s largest retailer into the niche beauty market is alleged to pose serious threat to beauty retailers. For instance, in 2018, Amazon forayed into online pharmacy by acquiring PillPack. As a result, the U.S. pharmacy chains & drug wholesalers such as McKesson Corp, CVS, and Walgreen, lost billions in market value.

Amazon typically uses its online profile and scale to offer a broad spectrum of products at lower prices and hence, pushes the existing players to the margins.

Steve Kann, Customer Driven Experience, Director, Amazon Business, reportedly said that the company is pleased to bring convenient shopping experience for professionals in the beauty industry. The stylists can now get everything they require at the Amazon online beauty store at good price, with convenient delivery options, freeing up their time for customers, Kann added.

Presently, stylists often travel to get necessary supplies from multiple cosmetology supply locations. Amazon would soon become a substantial channel for many brands to carry their top offerings on the Amazon platform, claim sources.

Amazon’s entry into the beauty segment is expected to lower Sally Beauty’s operating profits by 19%. In contrast, Ulta Beauty will face lesser troubles as it mostly sells cosmetic & styling tools, which account for 19% of the total sales, industry analysts claim.

Amazon reportedly stated that the stylists would need to create a business account and upload their state-issued licenses to buy products from the Amazon professional beauty store. The company added that it will stock brands including OPI Professional & Wella Professionals.

Source credits: https://www.reuters.com/article/us-amazon-beauty-products/beauty-retailers-fall-after-amazon-opens-store-for-professionals-idUSKCN1TP21H

https://www.cnbc.com/2019/06/24/ulta-beauty-shares-fall-after-amazon-unveils-beauty-store-for-proffessionals.html

  • share
  • Twitter
  • Facebook
  • LinkedIn


About Author

Mateen Dalal    

Mateen Dalal

Mateen has completed his Bachelor’s degree in electronics and telecommunication engineering, post which he lent his proficiency to the industry, working as a quality and test engineer. Drawn intricately toward the field of content creation however, Mateen soon switc...

Read More

More News By Mateen Dalal

Air France-KLM & JAL make bids to purchase stake in Malaysia Airlines
Air France-KLM & JAL make bids to purchase stake in Malaysia Airlines
By Mateen Dalal

Air France–KLM S.A., one of the leading global air transport players, has reportedly made a proposal to invest in Malaysia Airlines and gain around 49 percent stake. Japan Airlines (JAL) is also looking to acquire a 25 percent stake in Mal...

Accenture opens innovation center in South Beach Road office
Accenture opens innovation center in South Beach Road office
By Mateen Dalal

Accenture, an Irish multinational professional services company, has recently opened a global innovation center within the Accenture’s office at South Beach Road, which is supported by EDB (Economic Development Board) in Singapore. It will pro...

Verrica unveils positive data from VP-102 study in molluscum treatment
Verrica unveils positive data from VP-102 study in molluscum treatment
By Mateen Dalal

Findings from the study are being produced at the 17th Annual Winter Clinical Dermatology Conference in Kohala Coast The data indicated a considerable increase in the percentage of patients with lesion clearance in VP-102 group Verrica Pharmaceu...