Recently, Sephora is undertaking the most ambitious capital project in its history by redesigning every store in its North American fleet, as announced by Artemis Patrick, President and CEO of Sephora North America, at the National Retail Federation’s Big Show conference. This project, which began last fall, will impact over 700 stores, with some undergoing major redesigns and others receiving minor updates. The majority of the transformations are expected to be completed within the next five years.
The redesigns are informed by extensive insights, including customer behavior data, such as heat maps and shopping patterns, and a re-evaluation of in-store displays, known as gondolas. Patrick emphasized the need for adaptable and cost-effective designs, stating that Sephora wants its fixtures to be both functional and reflective of its current and future product assortment, which includes makeup, skincare, fragrance, and hair care.
Sephora has also reimagined its beauty studios, relocating them to more private areas with enhanced lighting based on feedback from millions of consumers. Additionally, the retailer has adapted its checkout process to reflect the growing use of mobile checkouts, which currently account for 25% of transactions.
Patrick underscored the importance of balancing design with functionality, ensuring a consistent shopping experience across all store locations, not just flagship stores. Over the past few months, changes have been implemented in 111 stores, resulting in increased transactions, productivity, and sales compared to control groups.
Beyond store redesigns, Sephora has been expanding its global footprint, adding new locations in Australia and through its partnership with Kohl’s. The shop-in-shop concept at Kohl’s is attracting younger, more diverse customers, helping the department store grow while intensifying competition with Ulta. The partnership also positions Sephora to better compete in similar retail environments where Ulta operates.
Tom Kingsbury, Kohl’s outgoing CEO, highlighted Sephora’s impact on beauty sales, noting a 9% comparable sales increase, a stronger acceleration than in Q2. Categories such as fragrance, bath and body, and skincare—particularly brands like YSL, Laneige, and Sephora Collection—showed robust growth.
