The department store chain Macy’s announced on Tuesday that it will acquire the beauty retail brand Bluemercury for $210 million. Bluemercury will continue to operate their independent locations, while Macy’s plans to incorporate Bluemercury products in their stores.
Forbes writes that the deal is a part of Macy’s and Bloomingdale’s plans to create “omnichannel” brands for shoppers in-store, online, and on phones. Macy’s announced a restructuring of the retail chain last month, in which their brick-and-mortar stores and online channels will operate together rather than independently. Macy’s CEO Terry Lundgren and Bluemercury founder and CEO Marla Beck see the acquisition as a way to expand both brands.
— Fashionista.com (@Fashionista_com) February 4, 2015
Lundgren wrote in Tuesday’s statement that Bluemercury is a key component of the “omnichannel” plan.
“Beauty is a core signature business for Macy’s and Bloomingdale’s and a continued platform for our company’s profitable sales growth. With Bluemercury, our company can access a new channel to reach additional customers, add new dimensions to our product offering and apply our expertise in omnichannel retailing.”
The Bluemercury chain is based in Washington, D.C., based, and was founded in 1999. Bluemercury is primarily found in major cities and has 60 locations in 18 states, most of which have in-house spas. Similar to Ulta and Sephora, its stores carry both famous makeup brands such as Esteé Lauder and Kiehls, as well as its own line of products, the M-61 skincare line.
— Meg Biram (@megbiram) February 4, 2015
The Washington Business Journal adds that Bluemercury co-founders Marla Beck and Barry Beck will remain in their roles as CEO and chief operating officer. Marla Beck hopes that the acquisition will allow the cosmetics brand to expand from 60 stores to 350 nationwide. She also hopes that Macy’s experience in e-commerce will improve Bluemercury’s online presence.
— Bluemercury (@bluemercury) February 4, 2015
Beck founded Bluemercury “after finding the department store cosmetics shopping experience lacking,” and according to the Washington Business Journal, the acquisition has a touch of irony. Its first location opened in Georgetown, a northwest neighborhood in D.C., and expanded to nine stores in the area alone.
Macy’s enjoyed successful 2014 financial results. Between February and November of 2014, Macy’s made net sales worth $18.7 billion and produced a net income of $733 million, almost a nine percent increase from 2013. The successful year came after Macy’s received negative attention from its restructuring plan, as covered by the Inquisitr. Macy’s cut nearly 2,500 jobs and closed certain stores during the reorganization.
[Photo Source: Forbes]