BEAUTY CARE

e.l.f bolsters its position in mass with space gains in Walmart, Target

BY David Salazar

OAKLAND, Calif. — Cosmetics company e.l.f. Beauty is poised to grow its space in the mass channel, getting more space in Walmart’s beauty section and optimizing its assortment in Target after gaining more space earlier this year, according to its executives.

The beauty brand will be getting a 20% increase in its linear footage in Walmart, president and CFO John Bailey told analysts this week when announcing its second-quarter financial results. The expansion, part of the company’s initiative to expand its brand penetration, began in Q2 and is expected to finish in the fourth quarter. At Walmart, e.l.f CEO Tarang Amin said that there is a large potential for the brand’s growth as the retailer looks to elevate its beauty offering.

“We have less than 10% of the Walmart doors with more than 4 feet, so it's a tremendous opportunity for further expansion,” Amin said.

The Walmart expansion follows the brand’s expansion in Target, where it gained 50% more shelf space earlier this year, and where Amin said the company currently is working to optimize its merchandising and assortment. It also follows the launch of e.l.f products into 200 Ulta stores from its beginnings on Ulta.com and the introduction of e.l.f. in more than 200 Superdrug stores in the United Kingdom.

Amin, in speaking to analysts, tied e.l.f.’s growth to its constant efforts to add to its portfolio — including this year’s launch of e.l.f. Beuty Shield line of seven skincare products.

“The reason we’ve been able to grow … is first our ability to engage young diverse makeup enthusiasts. For our consumer, makeup is not a discretionary purchase,” Amin said. “Second is the business model itself. Take a look at our ability to launch something new almost every week, which gives us tremendous arsenal from which to be able to bring our retail partners a proven and validated innovation where we're not trying to guess what the next trend or fad is going to be but actually have products that are performing in the marketplace.”

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Goodwipes gets Walmart launch

BY David Salazar

ATLANTA — Cleansing wipes company Goodwipes this summer has moved into more than 600 Walmart stores, the company recently announced. The distribution includes its Down There Wipes premium products line, featuring the new shea coco fragrance alongside its signature lavender scent.

The Down There Line of feminine hygiene wipes features flushable, pH-balanced and hypoallergenic wipes that also are paraben- and alcohol-free. The sheets are formulated with aloe and vitamin E, and are available in re-sealable packs of 32 and 16-count boxes of individually wrapped sachets for on-the-go use.

The 16-count boxes are priced at $1.94 and the 32-pack is priced at $3.94.

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Walmart reportedly among Birchbox suitors

BY Marianne Wilson
Online subscription beauty retailer Birchbox may be looking to sell itself.
 
The company has been discussing a potential sale with several retailers, including Walmart, reported Recode. If the discounter were to acquire Birchbox, it would be the chain's fifth e-commerce acquisition since last August. 
 
Birchbox has raised more than $80 million from investors since it was founded in 2010, in addition to previously undisclosed venture debt that the start-up secured in 2015, according to Recode. Although the debt is coming due in early 2018, Birchbox has multiple offers on the table to restructure it, which is expected to alleviate any pressure to sell.
 
In addition to its e-commerce site, Birchbox operates two stores, one in New York City's SoHo neighborhood, and another in Paris, which it opened in spring 2018.
 
The discussions of a sale come as Birchbox has been working to right its business this year following a rough 2016 that included two rounds of layoffs, Recode said. 
 
Click here to read more.
 

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