Beauty retail giant Sephora has unveiled its revitalized Parisian flagship on the Champs-Elysées, marking a significant step towards its ambitious goal of exceeding €20 billion in annual revenue. Sephora, under the ownership of LVMH, aspires to reach a milestone previously achieved by the luxury conglomerate’s flagship brand, Louis Vuitton, as disclosed by CEO Guillaume Motte.
With a global presence spanning 35 countries and a workforce of 46,000, a substantial portion in retail roles, Sephora is determined to build on its 2022 estimated revenue of €12 billion, solidifying its position as the second-largest brand within LVMH. This significant growth represents a remarkable leap from its 2011 revenue of just €2 billion.
Motte’s vision for Sephora’s future is clear, stating, «My dream is to attain €20 billion in revenue, a feat that Sephora can achieve in the regions it serves. While the timeline is flexible, it’s an aspirational target.» Sephora’s strategy for realizing this vision involves «continuing to gain market share,» particularly in established markets like the USA and China. The company has plans to inaugurate 100 new stores worldwide by 2024.
In the USA, deemed «the world’s largest beauty market» by Motte, Sephora currently operates 700 stores and collaborates with cosmetics retailer Kohl’s for an additional 1,000 locations. Motte explains, «We are opening 50 stores each year in North America, and I believe we can maintain this pace for the next five to ten years.»
China is Sephora’s second priority, where it maintains around 350 stores, almost as many as in its native France. Motte emphasizes China’s immense potential, saying, «We have the capacity to open many more stores in China, where we are present in just 90 cities, while some competitors are already established in 150 or 190 cities. The Chinese market is brimming with opportunity.»
Despite recent economic challenges and a slower post-COVID recovery in China, Motte remains optimistic, acknowledging the country’s significant appetite for beauty products.
Sephora also sees a dynamic European market, particularly in the UK, which ranks among the top five global beauty markets. The brand reentered the UK market just a year ago, with plenty of market share left to capture in its current markets.
The focal point for Sephora in France is the reopening of its Champs-Elysées store, a sprawling 1,200-square-meter flagship location that has undergone extensive renovations. This flagship is second in size only to Dubai and precedes New York within Sephora’s global network. Sephora currently operates 3,000 stores worldwide, including 300 in France.
Before its temporary closure for renovations in May, the Champs-Elysées store drew an average of 10,000 visitors daily, with a notable portion hailing from outside France, as per Motte.
As an official sponsor of the Paris Olympics, Sephora will be a partner of the Olympic torch relay in the coming summer. The brand has been diligent in ensuring that its Parisian flagship is prepared for the 2024 Games, anticipating an upsurge in tourist foot traffic along this iconic route.
Motte shares his expectations, stating, «While it remains uncertain whether the Olympics will surpass holiday foot traffic, we anticipate an approximate 50% increase above the daily average of 10,000 visitors during the Games.»