Macy’s, Inc. announced Tuesday that it will acquire Bluemercury, Inc., considered America’s biggest and fastest-growing retailer of luxury beauty products and spa services, for $210 million in cash. The process is set to be completed in Macy’s fiscal first quarter, which ends on May 2, and be accretive to Macy’s earnings in its first full year (2016).
The Washington, D.C.-based Bluemercury is currently operating roughly 60 specialty stores in 18 states, usually in prime street-level locations and urban lifestyle centers, as well as its online business. The company’s products include high-end luxury beauty brands and proprietary skincare brand, M-61. Bluemercury also offers personalized help 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,” Terry J. Lundgren, Macy’s chairman and chief executive officer, said. “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.”
Bluemercury will still be led by co-founders Marla and Barry Beck, who have been running the company since 1999. Its 500 associates will remain in their current roles operating a stand-alone Bluemercury specialty business.
“We are excited to continue our aggressive expansion of Bluemercury while simultaneously leveraging Macy’s leadership in omnichannel technology, supply chain, and retail operations,” Marla Malcolm Beck said. “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.”
Barry Beck added, “With the full weight of Macy’s resources, we will be able to accelerate our store penetration across the United States, bringing our specialty store format to urban and suburban markets throughout the country.” He concluded, “We are thrilled to team up with Macy’s in this next chapter of our growth and we especially want to thank The Invus Group who has been a great partner since 2006.”