By Okon Ekpenyong

During the second day of the 2025 National Retail Federation Retail Big Show in New York City, Artemis Patrick, President and CEO of Sephora North America, discusses with Kelly Pederson, a Partner at PwC, how Sephora has evolved over the years and why it leads in the beauty segment.

Statistically speaking, the company is the leader in the online stores in the beauty segment in the United States, generating the highest net sales per a report in 2023, totaling approximately $2.7 billion. In comparison, Bath and Body Works ranks third with around $1.4 billion in sales. This data comes from Statista.com, which offers up-to-date statistics on various topics.

Pederson’s conversation with CEO Patrick emphasized the company’s growth while addressing the challenges that needed to be overcome to stay committed to meeting consumer needs. Patrick shared insights about beauty products suitable for teenagers aged 12 or 13, discussing the types of products their daughters use. He also provided some recommended product lines for Pederson.

The CEO emphasized the company’s commitment to transforming the beauty retail landscape by providing a shopping experience that blends personalized service with advanced technology. For instance, if consumers prefer online shopping, a beauty advisor can assist them. Patrick highlighted key insights regarding the brand’s strategy to meet the evolving expectations of its discerning customer base.

Patrick articulated the crucial role played by Sephora’s highly trained beauty advisors, who provide tailored consultations free from the pressures of commission-based sales. This model enables authentic interactions, allowing advisors to assist customers with specific beauty inquiries, from achieving a sun-kissed appearance for an upcoming vacation to selecting appropriate products for a public performance. “It is essential to foster open conversations,” she emphasized, highlighting the significance of personal engagement, which digital platforms cannot replicate.

Patrick emphasizes that the business’s success also lies in consumer in-store experiences, especially when there’s a beauty advisor around to assist them. Such practices are why they are fundamentally rooted in their rich and immersive face-to-face consumer interactions. Over time, the company works to perfect its rigorous process of gathering insights from customers and beauty associates, informing a comprehensive remodeling effort across its store locations, which is another factor of success. This initiative represents the largest capital project in Sephora’s history.

In the previous fall, the company embarked on an ambitious endeavor to redesign every store in North America,” Pederson says. The CEO responded that through analysis of productivity data and consumer shopping patterns, it was a team effort to identify essential insights that inform shopper behavior. “Understanding the future trends within the beauty industry requires a blend of analytical and creative approaches,” she noted. This foresight has shaped the new store formats, prioritizing flexibility and adaptability while ensuring a well-curated product selection.”

Some of the changes that help drive sales and consumer satisfaction include relocating the beauty studio to a space that provides greater customer privacy. Patrick highlighted the importance of customer preference in not having makeup applied in full public view and the demand for improved lighting—a change that Sephora has implemented to enrich the shopping environment.

Diving into the e-commerce world by embracing technological advancements, the CEO says that such an acknowledgment and implementation allow consumers to utilize mobile devices for checkouts, making their experience much faster than waiting in line for a while to checkout. Like many retailers, “this trend has prompted the integration of mobile payment options while enhancing the shopping experience for all and ensuring that it remains seamless whether customers prefer the old school way of in-person consultations or through digital interactions.”

While many retailers may prioritize flagship stores in major metropolitan markets, Patrick articulated Sephora’s commitment to delivering a consistent experience across all locations, including smaller communities. “It is imperative that customers, regardless of their geographical location—be it a small town in Idaho or a picturesque setting on Vancouver Island—enjoy a uniform experience,” she asserted.

“The focus on careful design and strategies centered around consumer needs has produced positive results, with more than one hundred stores revitalized in just a few months. Key performance indicators, such as transaction volumes and sales productivity, have shown significant improvement compared to control groups, confirming the effectiveness of these changes.”

Just like Sephora and so many other retailers present during the 2025 NRF Big Show, improving its insightful design, using the latest technological innovation to provide a secondary option for consumer experience and an unwavering focus on customer satisfaction is one of the keys to continuing to drive net sales and stay alive in a competitive market. Therefore, as Patrick noted, for Sephora, strengthening its presence in the prestige beauty sector and reinforcing its status as a global premier destination for beauty consumers remains the focus.

“We strive to create environments that inspire and engage, ensuring that each visit to Sephora is a distinctive and rewarding experience.”

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