Target, kind of quietly, has been acquiring e-commerce sites to help differentiate and grow in line with its trendy branding position. In March, the retailer agreed to acquire Chefs Catalog and Cooking.com, two e-commerce sites focused on cooking and kitchenware. Yesterday, Target announced an agreement to acquire the DermStore Beauty Group and its DermStore.com site.
DermStore, according to a release to announce the deal, will become a new, wholly owned subsidiary of Target and continue to operate as a separate entity under its online name.
"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, president of Multichannel and senior vice president, Enterprise Strategy, Target, in a statement. "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."
Dan Obegi, the current CEO of DermStore will be president of Target's new subsidiary.
"DermStore's success was built on understanding the beauty market and catering to a shopper who's seeking a wide array of prestige products, exceptional service and product expertise," said Mr. Obegi. "Our customers have come to trust us to consistently deliver a quality experience and we are confident that this acquisition will benefit Target's guests and expand Target's online market share."
The DermStore acquisition signals Target's commitment to the beauty area as a means to growth. In June, RetailWire reported on the chain's decision to expands its Beauty Concierge program to 200 stores this summer. Each Concierge is staffed with a "highly-trained, brand agnostic beauty enthusiast" who is available to answer customers' questions about products. Two-thirds of respondents to a RetailWire poll said the Beauty Concierge program would be rolled out to all Target stores in the future.