Kevin JohnsonSephora is a multinational beauty retailer based in Paris, France, which offers hair care, cosmetics, nail polish, fragrance, skincare, body products, and beauty tools.
Dominique Mandonnaud founded the beauty chain store in 1969. In 1997, Hennessy Louis Vuitton acquired Sephora and expanded its portfolio to over 300 brands.
The company features Bobbi Brown Cosmetics, YSL Beauty, Atelier Cologne, Calvin Klein, Dior, Fenty Beauty, and Prada. In 2022, Sephora had over 28,000 employees and operated around 2,600 stores in 34 countries globally.
Sephora has partnered with the department store Kohl’s. In Aug 2022, Kohl’s opened Sephora shop-in-shops in 600 locations. This partnership can generate $2 billion in annual sales by 2025. [1]
Sephora expanded globally through strategic partnerships, including Kohl’s and JCPenney. In 2021, one million Kohl’s shoppers signed up for Sephora’s VIP Loyalty program. Sephora implements customized promotions for each region globally to attract the target audience.
In Dec 2022, Sephora Australia and New Zealand launched the 2022 Holiday Campaign at the Sydney flagship store. The company adopted the theme “It’s The Beauty You Give” to encourage customers to share kindness and intimacy.
However, Sephora faces stiff competition from Ulta, L’Oreal, Estee Lauder, Nordstrom, Avon, Macy’s, Oriflame, and Sally Beauty. [2]
Here is an in-depth analysis of Sephora’s top 15 competitors and alternatives:
1. Ulta Beauty, Inc.
Year founded: 1990
Headquarter: Bolingbrook, Illinois
Ulta Beauty is an American beauty retailer formerly known as Ulta Salon, Cosmetics, and Fragrance. The company partnered with Target to counter Sephora-Kohl’s collaboration. In 2022, Target added 250 new Ulta shops in its locations. The beauty retailer has 1,308 stores and over 40,000 employees.
Ulta has a robust Omnichannel ecosystem that combines e-commerce and physical stores. In 2022, the company introduced a new layout to improve the shopper experience. Customers can now find skincare products at the storefront and leverage new installations to access specific items.
In Q3 2022, Ulta opened 18 new stores and recorded an 18% increase in buy-online-pick-up-in-store sales. Ulta Beauty is the top Sephora competitor and alternative. [3]
2. L’Oreal
Year founded: 1909
Headquarter: Clichy, France
L’Oreal is a French personal care brand and the world’s largest cosmetics company. It offers 35 brands, including Maybelline, NYX, Kiehl’s, Superstay, Garnier Micellar, L’Oreal Paris, L’Oreal Luxe, Prada, SalonCentric, La Roche-Posay, and CeraVe.
In 2022, L’Oreal had 86,000 employees, including 4,000 scientists and over 3,000 tech professionals.
L’Oreal sells hair color, skincare, sun protection, make-up, perfume, and hair care products across distribution networks, from e-commerce to department stores, pharmacies, and salons. The company is a beauty tech powerhouse, with 20 research centers in 11 countries globally.
In Oct 2022, L’Oreal acquired the physician-dispensed skincare brand Skinbetter Science to deliver cutting-edge dermatological research solutions to consumers. L’Oreal is one of the best Sephora alternatives for cosmetics and personal care products. [4]
3. The Estee Lauder Companies
Year founded: 1946
Headquarter: New York City, New York
Estee Lauder is an American multinational cosmetics company that offers make-up, skincare, fragrance, and hair care products. It is the second largest cosmetics company globally after L’Oréal. In 2022, Estee Lauder had around 63,000 employees.
Estee Lauder sells its products in around 150 countries and territories. The company offers several brands, including Estee Lauder, Aramis, Clinique, Lab Series, Origins, MAC, La Mer, Bobbi Brown, Aveda, and Jo Malone London.
It also features Bumble, Darphin Paris, Tom Ford Beauty, Smashbox, AERIN, Le Labo, GlamGlow, and Dr.Jart+. Estee Lauder is a worthy alternative to Sephora. [5]
4. Nordstrom, Inc.
Year founded: 1901
Headquarter: Seattle, Washington
Nordstrom is an American luxury department store chain, under the foundation of John W. Nordstrom and Carl F. Wallin. It has several brands, including Nordstrom Rack, Trunk Club, BevyUp, and HauteLook. In 2022, the company had around 70,000 employees and operated over 350 Nordstrom, Nordstrom Local, and Nordstrom Rack locations.
Nordstrom store started as a shoe store in 1901 and expanded its offering to include cosmetics, fragrances, accessories, jewelry, handbags, footwear, and clothing. However, its beauty products cannot match Sephora’s portfolio.
Unlike Sephora, Nordstrom only operates physical stores in the US and Canada. Consumers outside North America can access Nordstrom’s products via its digital-first platform and online channels, including Nordstrom and Rack apps and websites.
In Jan 2023, Nordstrom reported a 3.5% net sales decrease for the nine-week holiday period. Yet, Nordstrom is a formidable Sephora competitor. [6]
5. Avon Products, Inc.
Year founded: 1886
Headquarter: London, United Kingdom
Avon is an American-British cosmetic, skincare, fragrance, and personal care company. It sells directly to consumers through online and physical stores. In 2022, beauty comparison platform Cosmetify recognized Avon as the most popular beauty brand in the UK.
Avon is the world’s leading fragrance brand and the 14th-largest beauty company. It advocates for women of every size, shape, race, religion, and demographic with its award-winning skincare technology and affordable beauty regimen.
In 2022, Avon partnered with Glamor Magazine for the Woman of the Year Awards. Avon is a formidable competitor for Sephora. [7]
6. Macy’s
Year founded: 1858
Headquarter: New York City, New York
Macy’s is a high-end department store chain founded by Rowland Hussey Macy. The holding company, Macy’s, Inc., owns several iconic brands, including Macy’s, Bloomingdale’s, and Bluemercury.
In 2020, Macy’s implemented its 3-year Polaris growth strategy. The company closed 36 Macy’s stores, one Bloomingdale in 2021, and four locations in 2022 as part of its downsizing plan.
Macy’s is the go-to retailer for high-quality brands at great value, from off-price to luxury products. It operates one of retail’s largest e-commerce businesses integrated with physical stores to deliver seamless shopping experiences.
In 2022, Macy’s opened eight smaller-format stores and 42 Macy’s Backstage locations. The company now operates over 300 Macy’s Backstage shops across the US. Macy’s is one of the best alternatives to Sephora. [8]
7. Oriflame
Year founded: 1967
Headquarter: Schaffhausen, Switzerland
Oriflame is a multinational multi-level marketing company that sells beauty and personal care products. It uses a direct-to-consumer business model via online channels and a network of independent sellers. In 2022, Oriflame had around 6,000 employees.
Oriflame sells beauty products globally. In 2022, the company was recognized in Cosmetify’s most popular beauty brands and platforms worldwide. Oriflame was ranked 2nd in the UK after emerging top in 19 markets, behind Avon in 21 and ahead of Nordstrom in 17 markets.
However, Oriflame could not match Sephora and Ulta Beauty, the joint leaders in the US. Still, Oriflame is one of the top alternatives to Sephora in the UK. [9]
8. Purplle
Year founded: 2011
Headquarter: Mumbai, India
Purplle is an Indian beauty care company founded by Manish Taneja and Rahul Dash. It is an online retailer with over 2,400 employees and offers several brands, including Faces Canada, Good Vibes, Carmesi, Purplle, Aloe Veda, Calvin Klein, DeBelle, Gilette Venus, and NY Bae. In 2022, Purplle became a unicorn after raising $33 million in funding. [10]
The main competitive advantage of Purplle is its comprehensive portfolio. The company has over 1,000 brands, 60,000 products, and five private direct-to-consumer brands. In 2022, Purplle surpassed 7 million monthly active users and scaled its annualized GMV to $180 million.
The latest investment increases its total funding to over $215 million and valuation to $1.1 billion, making Purplle one of the fastest-growing Sephora competitors.
9. Sally Beauty
Year founded: 1964
Headquarter: Denton, Texas
Sally Beauty is an international specialty retailer that distributes beauty supplies. It offers hair color and care products for consumers and salon professionals. In Nov 2022, Sally Beauty closed 350 stores as part of its digital transformation.
Sally Beauty serves consumers via Sally Beauty stores and salon professionals via Beauty Systems Group (BSG) stores. In mid-2022, the company had 3,439 Sally Beauty stores and 1,355 BSG stores.
But it closed several locations and consolidated its stores and distribution centers to boost its omnichannel capabilities. The closures will reduce costs by $50 million in 2023. Sally Beauty is an innovative Sephora competitor and alternative. [11]
10. The Body Shop
Year founded: 1976
Headquarter: London, United Kingdom
The Body Shop is a British cosmetic, skincare, and perfume company founded by Anita Roddick. In 2017, Brazilian beauty retailer Natura acquired The Body Shop for £880 million. However, due to piling debts, the parent company seeks to slim down the brand’s operations.
The Body Shop operates 2,800 stores globally, including company-owned and franchised locations. The brand caters to ethically conscious consumers.
In 2019, The Body Shop introduced refill stations for shower gel, handwash, and shampoo to ensure customers reuse bottles. This service is now available in 172 out of 219 UK stores.
In 2022, the company closed 26 stores in Russia and pulled out of the country after the invasion of Ukraine. The Body Shop is a socially and ethically conscious alternative to Sephora. [12]
11. L’Occitane
Year founded: 1976
Headquarter: Manosque, France
L’Occitane is a natural cosmetics and well-being product retailer. The company owns several beauty brands, including Sol de Janeiro, Elemis, L’Occitane en Provence, Melvita, Erborian, and LimeLife. In Sep 2022, L’Occitane operated 1,380 retail stores.
Both L’Occitane and Sephora offer beauty products, but L’Occitane specializes in natural cosmetics, fragrances, and face and body lotions. In 2022, the company closed 121 stores, of which 110 closings were in Russia.
The retailer posted a 24.9% increase in sales in Q2 2022 despite trading with fewer stores, making L’Occitane one of the top alternatives to Sephora. [13]
12. Florence by Mills
Year founded: 2019
Headquarter: El Segundo, California
Florence by Mills is a beauty brand for Gen Z, founded by Millie Bobby Brown. The actor, an Allure’s A-List member, was only 14 when she established the company. In 2022, Florence by Mills emerged top of Cosmetify’s popular beauty brands with an overall score of 8.38 out of 10. [14]
Florence by Mills is a 4-year-old beauty brand established by a teenager, but it is already threatening icons like Sephora. The company recently launched an eye balm to combat the dark circles of late-night study sessions. This product sold out after its release. Florence by Mills is one of the best alternatives to Sephora for Gen Z.
13. Cult Beauty
Year founded: 2007
Headquarter: London, United Kingdom
Cult Beauty is a web store that offers cosmetics from independent brands. In 2021, THG plc acquired Cult Beauty for £275 million. The parent company integrated Cult Beauty into its Ingenuity e-commerce platform.
Cult Beauty combines several marketing strategies to attract the target audience. In Dec 2022, the company hosted a festive pop-up in London to showcase its brands.
The House of Thrills shopping experience offered exclusive gifts, classes, and makeovers from Charlotte Tilbury, US blow-dry specialist Drybar, Korea’s Glow Recipe, and FaceGym. Cult Beauty is one of the top Sephora competitors in the UK cosmetics market. [15]
14. Birchbox
Year founded: 2010
Headquarter: New York City, New York
Birchbox is a beauty monthly subscription service owned by FemTec Health, Inc. It offers skincare items, perfumes, organic based products, and cosmetics. FemTec Health acquired Birchbox in 2021 for $45 million. [16]
Birchbox sends its subscribers a box of 4-5 selected samples of beauty products. After its acquisition in 2021, Birchbox leveraged FemTec Health’s BiomeAI platform and shifted from beauty product discovery.
The company now offers curated, personalized skin and healthcare products, but this move didn’t shield Birchbox from the industry-wide economic downturn. Its 2022 revenue projections dropped by over $25 million, catalyzing bankruptcy speculations. Yet, Birchbox is one of the best alternatives to Sephora for a beauty subscription.
15. Beauty Bay
Year founded: 1999
Headquarter: Manchester City, United Kingdom
Beauty Bay is a Gen Z-focused beauty brand founded by brothers Arron and David Gabbie. It sells products via online channels and retail stores. In 2022, the company hired 33 employees and increased its workforce from 150 to 183 people.
Beauty Bay recorded increased sales and new customer acquisitions in 2021 as consumers switched to online retailers. In fiscal 2022, the company’s turnover dropped by 31% as consumers flocked back to brick-and-mortar stores. A return to normalized customer acquisition levels also drove the decrease.
In May 2022, Beauty Bay abandoned its IPO plans due to inflation in the global market. Beauty Bay is one of the best alternatives to Sephora for younger consumers. [17]
References & more information
- Holman, J. (2022, Aug 18). In Search of Growth, Kohl’s Expands Sephora Shops to All Stores. The New York Times
- Ruzzene, M. (2022, Dec 5). Sephora launches 2022 Holiday Campaign. Retail Beauty
- Kohan, S. E. (2022, Dec 2). Ulta Beauty Delivers Another Stellar Performance With Profits Up 28%. Forbes
- L’Oreal (2022, Oct 20). L’Oreal News Release: Sales on Sep 30, 2022. Globe Newswire
- The Estée Lauder Companies Inc. (2022, Nov 11). The Estée Lauder Companies’ 2022 Annual Meeting of Stockholders was held on Nov 18, 2022. Business Wire
- Nordstrom, Inc. (2023, Jan 19). Nordstrom Reports Holiday Sales, Updates Outlook. PRNewswire
- Johnson, S. (2022, Nov 14). Favorite Cosmetics Brand AVON Joins Glamor’s Women of the Year Awards 2022. Biz Crast
- Martin, S. (2023, Jan 6). Macy stores closing: Four more stores shuttered in the latest round. USA Today
- Douglass, R. (2022, Dec 13). Cosmetify reveals the most popular beauty brands and platforms of 2022. Fashion United
- TNN (2022, Jun 10). Online beauty platform Purplle.com turns a unicorn. Times of India
- PYMNTS Editor (2022, Nov 10). Sally Beauty to close 350 stores and ramp up Omnichannel services. PYMNTS
- Butler, S. (2022 Oct 22). David Boynton of The Body Shop: They say retail is dead. But we’re social creatures. The Guardian
- Prance-Miles, L. (2022, Oct 27). L’Occitane continues positive momentum with 24.9 percent Q2 sales growth. Global Cosmetics News
- Mazzone, D. (2022, Feb 10). Millie Bobby Brown on Building a Gen Z Beauty Empire. Allure
- Pauley, A. (2022, Nov 21). Cult Beauty opens Christmas pop-up ‘House of Thrills’ in London. Cosmetics Business
- BP Editor (2022, Nov 22). Birchbox Beauty Subscription Service Considers Bankruptcy. Beauty Packaging
- Pauley, A. (2023, Jan 4). Beauty Bay sales plummeted by £40 million in 2022. Cosmetics Business
- Featured Image by Deva Darshan
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