Dive Brief:
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Macy’s will buy high-end beauty and spa retailer Bluemercury for $210 million in cash, the department store said Tuesday.
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The company also raised its annual profit outlook and said its holiday sales were better than expected.
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Bluemercury will continue to operate as a stand-alone retailer and co-founders Marla and Barry Beck will stay on as CEO and COO, but Macy’s says it may bring Bluemercury products and services into its Macy’s and Bloomingdale’s stores.
Dive Insight:
Macy’s has been doing well among department store retailers, and this move will help broaden its luxury-customer base. In his comments Tuesday, CEO Terry J. Lundgren showed that he believes that Macy’s and Bloomingdale’s customers are ready to spend a bit more on cosmetics and spa services.
“Beauty is a core signature business for Macy’s and Bloomingdale’s and a continued platform for our company’s profitable sales growth,” Lundgren said in a statement. “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.”
