How Sephora Looks to Blend Stores With Digital Innovation
Sephora remains committed to its store base but is continuing to blend physical retail with online and AI within its stores, according to Anca Marola, global chief digital officer at the beauty retailer.
Speaking in late April at the World Retail Congress, Marola stressed the retailer’s commitment to its store base, with its format combining distinctive designs with knowledgeable advisers. The company operates around 3,400 stores globally, with about 150 new store openings a year.
“People still love the stores, the excitement remains and I think that’s pretty irreplaceable,” she said. “This is still a big focus on stores. But we’re bringing a lot of innovation into our stores, and we have curated a table in-store to showcase the social brands [top products promoted via its social channels].
"With the Beauty Scan, you get skin diagnostics and the shade analysis. This is a combination of hardware and AI to control the lighting and to make it extra precise. This information can be stored on the Sephora app, which if the user opts in means the correct shades come up, to save customers time."
Marola added that AI is training a new style of client behavior, which is more conversational than traditional online and means adapting how Sephora communicates on its e-commerce channels as well.
“To me that’s exciting because it’s the first time we can bridge that gap between the stores and online," Marola said. "E-commerce is around a third of our business, and we are evolving that into more conversational advice, just like in-store when we can tailor the experience. We do have a lot of information, including 14 million product reviews, loyalty programs and preferences, the beauty scan, connecting this to make it more personal.”
Looking to the future, she said that was Sephora was looking at how it could amplify and prioritize “what’s magical for the Sephora customer.”
“It’s a very personal product category,” she stressed. “I would say our priority is doubling down on our omnichannel convenience, giving customers the fastest delivery possible, which is down to two hours for in-store click-and-collect. But customers are also progressing and seeking new channels, like advice on ChaptGPT, so we need to meet them where they are.”
Sephora is collaborating with ChatGPT to enable customers to buy directly via the AI platform, while it is also trialing AI development of its app, with both initiatives being piloted in the U.S.
She also stressed the importance of adapting the Sephora brand across markets — which now total 36 globally — and creating marketing relevant to the local consumer.
“We have local teams everywhere which means we can localize the messaging and communication and we try and understand and adapt to the local culture, which we are also using AI to help us with creatively,” she said. “Channels will always change but what brings people to Sephora is our authority and trust, which we want to bring consistently to people across channels and platforms.”
