Sephora to open 20 UK stores in expansion strategy

Sephora announces plans to open 20 new stores in the UK by 2027, doubling its current amount as it expands its presence in the competitive beauty market.

CEO Guillaume Motte says the goal is to become the “most loved” beauty brand, despite acknowledging that size dominance is unlikely as Boots and Space NK remain the most prominent beauty retailers in the UK.

The retailer, owned by luxury conglomerate LVMH, has six UK locations and will launch its seventh store at Bluewater Shopping Centre in Kent on November 27, 2024. Another outlet will open in Liverpool in spring 2025.

“The UK has some of the most engaged, experienced consumers in the world. It is a big battleground, so we come with humility,” said Sylvie Moreau, president of Sephora Europe and Middle East, to Cosmetic Business.

Details on expansion

Sephora initially left the UK in 2005 due to high operational costs and fierce competition. However, according to the brand, its return has been strategic. 

Sephora re-entered the UK market in 2022 after a 17-year absence. It acquired online retailer Feelunique in 2021 for £132 million (US$176 million) and established a digital presence. It then gradually opened brick-and-mortar stores in busy locations such as London’s Westfield Stratford, Manchester’s Trafford Centre and Birmingham’s Bullring.

The company says these openings have seen significant customer turnout, with thousands of attendees at launch events. 

Adapting to the environment

Sephora’s expansion comes as the UK beauty sector continues to grow. Rivals like Space NK and Superdrug are also expanding their footprints. Meanwhile, Boots is reimagining the in-store experience with updated beauty halls and new retail concepts.

“I know that sometimes we say that retail, especially retail in the UK, has been doom and gloom,” Motte said to The Times. He highlights the need for engaging retail experiences to ensure the business survives in the current environment.

Keeping head above water is a challenge many British retailers face. More than 70 retail CEOs recently called on the UK government to help their bottom line by cutting business rates by 20% and “level the playing field” for retail properties as they struggle to keep up with online retailers.

That call was answered when British finance minister Rachel Reeves revealed, in the most recent budget plan, the government will permanently lower tax rates for retail, hospitality and leisure properties from 2026-27.

Sephora’s strategy is to enhance customer engagement through its loyalty program and the retailer's exclusive brands, including Rare Beauty, Haus Labs by Lady Gaga and Sephora’s own-brand products.

To support this growth, Sephora made operational moves, which included appointing DHL Supply Chain as its logistics provider. This partnership will manage warehousing, e-commerce and transport.