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However, ecommerce isn鈥檛 traditionally a strong suit of dollar stores, so it may require additional investments in technology and talent to create a functional, user-friendly experience. This was originally featured in the Retail Daily newsletter. For more retail insights, statistics, and trends, subscribe here.

Gen Z women trust beauty influencers: Roughly eight in 10 Gen Z women shop for creators鈥� beauty and personal care recommendations.

Sephora targets Gen X shoppers with latest product launch: The beauty retailer is sharpening its appeal to beauty consumers over the age of 40, who spend more on prestige products than any other demographic.

Amazon sees a big opportunity in beauty: The retail giant is hosting the Summer Beauty Haul sales event to capture 蝉丑辞辫辫别谤蝉鈥� attention, boost retail media spend, and drive sales.

Gen Z teens cut spending in response to inflation: Shoppers in this cohort are shopping more often at off-price and ecommerce retailers to save money, although the beauty category is as resilient as ever.

The beauty and cosmetics sector brought in $94.36 billion in consumer spending last year, claiming the title of the fastest-growing retail category in the US, per our The US Beauty Consumer report. With most consumers planning to boost their beauty budgets in 2024, the sector鈥檚 defiance against cautious spending habits is set to continue, driven by the enduring 鈥渓ipstick effect,鈥� the rise of dupes and Chinese-associated ecommerce giants, and more.

Luxury ecommerce gets a boost from wealthy shoppers: Our Industry KPIs data shows that spending from top-tier consumers offset softening aspirational demand.

Beauty is proving resilient to the cost-of-living crisis as shoppers splurge on premium products to boost their mood and skin health. But it won鈥檛 escape unscathed, with consumers already streamlining their beauty regimes and searching for bargains online.

China鈥檚 economic malaise has triggered 蝉丑辞辫辫别谤蝉鈥� penny-pinching tendencies, forcing retailers and quick-service restaurants into a fierce price war that is hurting profitability and fueling deflation. The country鈥檚 largest ecommerce retailers鈥擜libaba, JD.com, and Pinduoduo鈥攁re investing billions of yuan to lower prices for consumers, with mixed results.

US beauty demand is normalizing as price sensitivities creep into purchasing behavior: That鈥檚 good news for e.l.f. Beauty but an added struggle for Coty and Est茅e Lauder, for which China remains a hurdle.

Gen Alpha鈥檚 obsession with skincare is driving beauty sales: Younger shoppers are gravitating toward premium brands and spending more time browsing the aisles at Sephora.

Sales growth for cosmetics and beauty will increase at more than twice the rate online than through physical retail channels this year, according to our February 2024 forecast. While ecommerce is stealing market share, its sales only tell a portion of the buying story. Physical stores are still key to discovering beauty products and brands, finding the right shades, and testing formulations鈥攁nd Walmart is making use of its omnichannel footprint to take advantage. Here鈥檚 how.

Ulta Beauty is using in-store vending machines to bring more joy to the shopping experience, and AI enables it to analyze more customer data for personalization. The retailer is also training its store associates to engage younger beauty consumers.

The ecommerce giant also revamped 26 Amazon Fresh fulfillment centers to include a wider array of products, including items from Whole Foods Market and Amazon.com. Amazon is building a micro fulfillment center attached to a Whole Foods location in Pennsylvania, enabling Whole Foods shoppers to order items from Amazon鈥檚 website and Amazon Fresh and pick them up in store.

Ecommerce disruptors like Temu and Shein have introduced highly gamified elements into their mobile-first shopping experiences, rewarding consumers for spinning wheels, redeeming coupons, and referring friends. To keep up, brands and retailers are turning to loyalty programs and adding elements of fun and entertainment to engage members. Gamification comes in many forms.

TikTok鈥檚 potential ban isn鈥檛 putting brands off TikTok Shop: The platform鈥檚 sales potential is driving companies like Rare Beauty and Tarte Cosmetics to deepen their investment.