Thursday, August 8, 2013

Target buys DermStore

According to BusinessWeek, Target has agreed to acquire online retailer DermStore Beauty Group for an undisclosed amount. Target's press release states that the deal "positions Target to expand its share of the rapidly evolving online beauty market and will further differentiate the company’s offerings in this important retail segment."

DermStore, founded in 1999 by a board-certified dermatologist, is the nation's leading independent skincare e-commerce site. It carries more than 26,000 product SKUs and 750 authorized brands, including SkinMedica, SkinCeuticals, and Dermalogica. In addition to its core site, the company also recently launched and, extending its reach to hair care and cosmetics.

“There is no doubt that the online beauty industry is growing rapidly, and this unique opportunity enables Target to gain insight into the superior, online customer experience DermStore provides,” said Casey Carl, Target's president of multichannel and senior vice president of enterprise strategy. “Not only will DermStore’s 750-plus brands offer Target expanded breadth across the beauty and skincare industries, but also access to exceptional content and helpful resources we know consumers want.”

And content is what DermStore is known for, especially their how-to videos under the moniker "Beauty TV". They shoot the segments - with topics like "How to Create the Perfect Ballerina Bun" - in a studio built in their lone brick-and-mortar store near Los Angeles. In the words of DermStore Chief Executive Dan Obegi (who will stay on after the acquisition as President)  “The goal is to make a shopping environment that is educational and entertaining for things you don’t know you want to buy yet as well as a place to get the stuff you know you want to buy.”

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