Beauty bars, robot-applied eyelashes and 18th-century VR chateaus: beauty departments of major department store chains have gone all out as social media and e-commerce reshaped the $129 billion US beauty market.
Christmas shopping, once dominated by crowded department store counters and last-minute gift seekers, has shifted increasingly online. Consumers now browse products from their sofas, relying on social media, influencers, and AI-powered tools for guidance. Quinn Kelsey, a 38-year-old from Denver, illustrates the trend. She finds makeup inspiration on TikTok, uses an AI chatbot to see how products will look, and typically makes purchases through Amazon. “Department stores? I’ll walk through one for the decor, but they’ve basically lost me unless I can get the same product-research experience there that I can get scrolling through my phone at home,” she said.
Department stores once dominated beauty retail, but the rise of Sephora and Ulta in the late 1990s shifted power toward self-service and trend-driven experiences. Today, retailers are racing to reclaim relevance in a market where e-commerce giants like Amazon, the nation’s largest online seller of beauty products, dominate. Social media platforms like TikTok and Instagram now influence product choices, with users seeking “dupes” and expert advice from influencers, dermatologists, and brand founders.
To compete, department stores are investing heavily in experiential upgrades. Macy’s and Nordstrom renovated flagship New York stores with expanded beauty floors, luxury brands, and advanced technology. Nordstrom offers robot-applied eyelash extensions priced at $170, while Macy’s Parfums de Marly section immerses customers in an 18th-century chateau via virtual reality while sampling scents. “This is the future of beauty,” said Nicolette Bosco, Macy’s vice president of beauty. The retailer plans to revamp 40 more stores, aiming to attract a broad range of shoppers.
Nordstrom’s Manhattan flagship also features LED light-therapy masks, a “fragrance finder” machine, and a medical spa offering Botox and dermal fillers priced between $575 and $1,050. Macy’s has upgraded seating, added skin-analysis devices, and is targeting higher-spending consumers across its portfolio, including Bloomingdale’s and Bluemercury.
Specialty retailers are responding with their own innovations. Sephora is redesigning 720 stores across North America, moving styling stations for privacy and introducing AI tools to guide online shoppers. Ulta is testing robotic manicures and plans to add robotic lash extensions. Walmart, meanwhile, has expanded higher-end beauty counters in 100 stores.
Social media continues to drive trends and sales. TikTok Shop, launched in 2023, ranks as the nation’s seventh-largest online seller of beauty products. Influencer-driven trends like “fragrance layering” and “blurred skin” makeup shape purchasing decisions, giving online platforms an edge over traditional stores.
Department stores are betting on immersive experiences and cutting-edge technology to reclaim their position in the beauty market, even as consumers increasingly combine physical browsing with online discovery. Whether these investments can counter the dominance of e-commerce and social media remains the central challenge for retailers heading into the holiday season.
