Dive Brief:
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Sephora has announced the launch of a membership-based two-day shipping program called “Flash.” For $10 annually, customers in the Continental U.S. and Puerto Rico can opt for unlimited two-day delivery, with no minimum purchase, or overnight delivery for $5.95, compared to its usual $16.95 overnight charge.
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In a pilot program, Sephora found that Flash subscribers spent twice as much as their comparable non-Flash counterparts. VIB Rouge customers — those that spent $1,000 or more each year — get their Flash memberships for free.
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The retailer also announced the opening of an Innovation Lab in San Francisco to develop and test technologies, as well as a series of tech programs. It’s expanding its in-store beacons program to all locations, and has developed a makeup app that helps customers learn contouring for their own face shape.
Dive Insight:
Sephora shook up cosmetics retail when it arrived in the U.S. from France more than 15 years ago by sweeping away the controlled, compartmentalized department-store counter experience with a more democratic display of high-end cosmetics. The company’s Innovation Lab and push into in-store tech like beacons shows it’s determined to keep customers’ attention.
The push into membership-based delivery could solidify Sephora’s customer base, widening the competitive space between sort-of competitor Ulta as well as the likes of Amazon.
