MINNEAPOLIS — Target is acquiring online skin care site DermStore, the mass merchandise retailer said Tuesday.
Target said buying DermStore would allow it to expand its share of the online beauty market. The company will continue to operate under its online name, DermStore.com as a separate entity, but it will be a wholly owned subsidiary of Target. CEO Dan Obegi will be president of the subsidiary and will report to Target president of multichannel and SVP enterprise strategy Casey Carl. Financial terms of the deal were not disclosed.
"There is no doubt that the online beauty industry is growing rapidly, and this unique opportunity enables Target to gain insight into the superior, online customer experience DermStore provides," Carl said. "Not only will DermStore's 750-plus brands offer Target expanded breadth across the beauty and skincare industries, but also access to exceptional content resources we know consumers want."
The deal is expected to close within 60 days.
"DermStore's success was built on understanding the beauty market and catering to a shopper who's seeking a wide array of prestige products, exceptional service and product expertise," Obegi said. "Our customers have come to trust us to consistently deliver a quality experience, and we are confident that this acquisition will benefit Target's guests and expand Target's online market share."