Sally Beauty updates mobile app to offer 2-hour delivery with DoorDash

Dive Brief:

To better serve online shoppers, Sally Beauty is expanding its DoorDash partnership to provide a two-hour delivery option via its mobile app, CEO Denise Paulonis said during the company's second quarter earnings call earlier this month, per a Seeking Alpha transcript.
The retailer charges $5.95 for two-hour delivery orders valued at less than $35, but orders of $35 or more are delivered for free, according to its website. The beauty retailer during the holiday season teamed up with DoorDash to offer its customers free 2-hour delivery for the entire month of December.
Mobile is a high engagement channel for Sally Beauty, with Paulonis noting that 80% of Sally Beauty’s customers engage with the retailer via mobile devices.

Dive Insight:

Sally Beauty's announcement appears to build on the partnership formed with DoorDash back in December to deliver products from more than 1,100 stores in the U.S. The beauty retailer at the time said it was using DoorDash Drive, the company's white-label fulfillment platform.

“During the quarter, our Sally U.S. and Canada stores fulfilled 37% of e-commerce sales, as BOPIS comprised 16%, rapid two-hour delivery represented 14% and ship-from-store accounted for 7%,” Paulonis said during last week's earnings call. “We’re seeing greater adoption of two-hour delivery, including lower cancel rates driven by improved supply chain efficiency as well as increases in average ticket and conversion.”

Going forward, Paulonis said Sally Beauty is relying on loyalty incentives and personalization to drive sales; in Q2, about 76% of its sales in the U.S. and Canada came from its loyalty program. Paulonis said the retailer recently introduced individualized journeys and personal website views based on each customer’s purchasing habits and previous searches. In 2023, the retailer plans to implement customized communications via text messages, social media and direct mail, Paulonis added.

Sally Beauty isn't the only retailer in the space capitalizing on quick delivery services. In September 2020, Sephora tapped Instacart for same-day delivery of its skincare, beauty and wellness products. The company expanded its fast delivery options in October 2021 and unveiled a Live Beauty Help shopping tool to guide customers through their e-commerce purchases, according to multiple media reports.