It already commands the pole position in France, Poland, the Czech Republic and the Balkans, but Sephora is thinking bigger… much bigger. The LVMH Moët Hennessy Louis Vuitton-owned retailer wants to be number one in every market.
While it’s still got a long way to go before it reaches this target, the company is not doing too badly - with Sephora currently placing second in Italy and third in Russia and Canada, according to WWD.
The retailer’s largest market is still the US, where industry sources estimate the company generates approximately 40 per cent of its total global sales. Sephora ranks second in the US behind Macy’s.
In 2013, market sources estimated it generated overall retail revenues of 4.4 billion euros for the year. Between 2000 and 2013, Sephora multiplied its sales by five times, generating double-digit growth worldwide for many years. The company is aiming to gain 10 per cent annually over the next five years.
Our dream is to be the leader in each country of the world. We will continue with our strategy to be global, open countries in an intelligent manner and always invest in our key [markets] - France and the US,” says Sephora chief executive officer Christopher de Lapuente.
A statement from LVMH on the first nine months of the year reads: Sephora continued to gain market share in key regions. Comparable store revenue growth was particularly strong in the United States and the Middle East… Online sales are rapidly increasing in all regions, confirming its leadership in the digital and mobile space.”
Sephora has more than 2000 stores across 31 countries. It opens around 100 new stores around the globe every year, with the next one opening in Australia in December.
It is not a question that the emerging markets will bring growth - most of the growth will come from mature countries. There is still a lot more we can do in the key markets, but openings are progressing well. Asia - I think it will be enormous. One day, Asia will be bigger than France [and] the U.S. It is a question of time,” says de Lapuente.
