Macy’s Bluemercury stores surge in growth

By

P J Gach

Published
Mar 22, 2017

Parent company Macy's is stumbling in the world of retail, as previously reported, the department store is in the process of closing 68 stores nationwide. However, the chain plans to open 50 new Bluemercury freestanding stores and stores within Macy’s throughout the year. Rolling out shortly are three new stores in New York City, one in Southampton, one in Newtown, Pennsylvania, and one in San Diego’s Carmel Valley. 

Macy’s says its reorganization will save approximately $550 million in operating expenses. The retailer plans to invest a good chunk of this money, $250 million, in store-related growth for Bluemercury, its Backstage store-in-store, and digital business (including e-commerce in China).

Bluemercury is Macy’s sole beauty brand in its portfolio of stores (Macy’s, Macy’s Backstage, Bloomingdale’s and Bloomingdale’s outlet).  The niche cosmetics chain specializes in cult-beauty and hard to find products. Marla Beck, co-founder and CEO announced on the brand’s website on March 8 that they would be expanding their all-natural beauty product selection in response to customer requests. Like other retailers, Bluemercury is also following the trend toward natural. In February, both Nordstrom and Target announced they would be expanding their natural beauty product selections.

Bluemercury was acquired by the retail chain in 2015 for $210 million dollars. Co-founders Marla Malcom and Barry Beck are still part of the brand and take an active role in the company. They oversee much of the company and rely on Macy’s HR resources, marketing and inventory systems for their chain.  Their vision is to keep the chain on track, whilst Macy’s assists in online and  brick-and-mortar growth.