US department store company Macy’s is to acquire beauty retailer Bluemercury
US department store company Macy’s - which also owns high-end retailer Bloomingdale's - has announced that it is to acquire Bluemercury, a US luxury beauty products and spa services retailer based in Washington, D.C for a sum of $210m.
The transaction is expected to be completed in Macy’s fiscal first quarter 2015 (which ends on 2 May) and be included in Macy’s earnings in its first full year (fiscal 2016).
Bluemercury currently operates around 60 stores in 18 states, typically in street-level locations and urban lifestyle centers, and most locations include in-house spas. The company also operates an online business. Products include high-end luxury beauty brands, all supported with personalised assistance from a team of beauty experts.
“Beauty is a core signature business for Macy’s and Bloomingdale’s and a continued platform for our company’s profitable sales growth. With Bluemercury, our company can access a new channel to reach additional customers, add new dimensions to our product offering and apply our expertise in omnichannel retailing,” said Terry Lundgren, Macy’s Chairman and Chief Executive Officer. “Our plan is 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. Concurrently, we also plan to add selected Bluemercury products and boutiques to Macy’s stores nationwide.”
Marla Malcolm Beck, Co-founder and Chief Executive Officer of Bluemercury, commented: “We are excited to continue our aggressive expansion of Bluemercury while simultaneously leveraging Macy’s leadership in omnichannel technology, supply chain, and retail operations. Keeping Bluemercury as a standalone business while adding new expertise will enable us to fulfill our mission of being the best at giving beauty advice and helping our customers make their way through the often complex process of purchasing beauty products.”
Bluemercury will continue to be led by Beck along with Co-founder Barry Beck, who will continue as Chief Operating Officer, while Marla remains Chief Executive Officer and President. Its team of approximately 500 associates will remain in their current roles operating a stand-alone Bluemercury specialty business. Within Macy’s, Bluemercury will report directly to Lundgren.