In an effort to grow the company’s beauty retail portfolio, Macy’s announced on Feb. 4 that it will purchase beauty business Bluemercury for $210 million in cash, according to The Drum. The transaction is expected to be completed by the end of Macy’s first fiscal quarter of 2015, which will come on May 2.
In a statement, Macy’s chairman and chief executive touted the company’s plan to “operate and significantly expand Bluemercury stores as a standalone business with an enhanced omnichannel component for a seamless customer experience across stores, online and mobile,” referencing Macy’s long-standing commitment to its successful strategy of integrating multiple shopping methods and inventory for an improved shopping experience.
Aside from keeping the chain, which operates 60 stores across 18 states as well as an online business, as a standalone entity, Bluemercury will also be able to market its products in Macy’s stores, as well as boutique stands, which co-founder and chief operating officer Barry Beck hopes will enable the company to “bring the specialty store format to both urban and suburban markets.”
This purchase comes at a time when Macy’s has shaken up its senior management to re-focus the company on profitable sales growth, especially through its omnichannel operations that have necessitated a larger office space to manage effectively. One recent example of this shift was the early start to Cyber Monday last November that included 50 percent off most goods as well as free shipping for online purchases. This will be headed by former Chief Merchandising Officer Jeff Gennette, who will make that his full time job, according to CNBC, as Timothy Baxter takes his place. In addition to greater integration of e-commerce, Macy’s is in the midst of reworking how its shops will present themselves to stimulate increased buying, as well as additional outlets going in over the next three years.