02.04.15
Macy’s, Inc. is betting on the potential of prestige beauty continuing to grow, snapping up Bluemercury, Inc., a large and growing luxury beauty products and spa services retailer, for $210 million in cash. The transaction is expected to be completed in Macy’s, Inc.’s fiscal first quarter (which ends on May 2, 2015) and be accretive to Macy’s, Inc.’s earnings in its first full year (fiscal 2016).
Bluemercury, based in Washington, D.C., currently operates about 60 specialty stores in 18 states, typically in prime street-level locations and urban lifestyle centers, as well as an online business.
Products include high-end luxury beauty brands, as well as M-61, a proprietary skincare brand – all supported with personalized assistance from a team of beauty experts with a high level of technical product knowledge. Most locations include in-house spas.
Bluemercury will continue to be led by Marla and Barry Beck, who co-founded the company in 1999. Its team of approximately 500 associates will remain in their current roles operating a stand-alone Bluemercury specialty business.
“Beauty is a core signature business for Macy’s and Bloomingdale’s and a continued platform for our company’s profitable sales growth. 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,” said Terry J. Lundgren, Macy’s chairman and chief executive officer. “Our plan is to operate and significantly expand Bluemercury stores as a standalone business with an enhanced omnichannel component for a seamless customer experience across stores, online and mobile. Concurrently, we also plan to add selected Bluemercury products and boutiques to Macy’s stores nationwide.”
Click here for Beauty Packaging’s interview with Marla Beck.
Bluemercury, based in Washington, D.C., currently operates about 60 specialty stores in 18 states, typically in prime street-level locations and urban lifestyle centers, as well as an online business.
Products include high-end luxury beauty brands, as well as M-61, a proprietary skincare brand – all supported with personalized assistance from a team of beauty experts with a high level of technical product knowledge. Most locations include in-house spas.
Bluemercury will continue to be led by Marla and Barry Beck, who co-founded the company in 1999. Its team of approximately 500 associates will remain in their current roles operating a stand-alone Bluemercury specialty business.
“Beauty is a core signature business for Macy’s and Bloomingdale’s and a continued platform for our company’s profitable sales growth. 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,” said Terry J. Lundgren, Macy’s chairman and chief executive officer. “Our plan is to operate and significantly expand Bluemercury stores as a standalone business with an enhanced omnichannel component for a seamless customer experience across stores, online and mobile. Concurrently, we also plan to add selected Bluemercury products and boutiques to Macy’s stores nationwide.”
Click here for Beauty Packaging’s interview with Marla Beck.