Beauty start-up turns profitable
Birchbox is no longer in the red.
The online subscription beauty retailer has achieved profitability, MediaPost reported, and is returning to television advertising with a spot that speaks to the joy the company’s monthly beauty box brings to its customers.
Founded in 2010, Birchbox had a tough 2016 during which it cut costs and laid off staff. But investments in technology and automation have helped it turn a corner.
Birchbox recently opened its second brick-and-mortar store, in Paris, where it had previously operated several successful pop-ups. (The first Birchbox store opened in 2014, in downtown Manhattan.) France is the brand’s biggest market in Europe.
“Retail has proven to be a powerful element of the Birchbox experience, and our stores helps consumers really understand the Birchbox personality,” Amanda Tolleson, head of marketing, told MediaPost. Customers who shop in our store have a three-times higher lifetime value with us, and our physical presence has helped open the door to working with a number of new brand partners.”
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Millennials rank their 10 favorite brands
For millennial shoppers, Victoria’s Secret is tops, followed by Sephora and Nike.
That’s according to a report from Conde Nast Inc. and Goldman Sachs Group Inc., which surveyed the popularity of brands among millennial shoppers, reported Bloomberg.
Rounding out the top 10 brands were Coach, Kate Spade, Michael Kors, Ulta Beauty, Lululemon, DSW, and Nordstrom. A key element in the companies’ success with these younger shoppers is their online presence, according to the report.
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British retailer buys bankrupt U.S. chain
Britain's largest sporting goods retailer is extending its presence in the United States.
Sports Direct International Plc has bought Eastern Outfitters, parent company of Bob’s Stores and Eastern Mountain Outfitters. Sports Direct, which operates some 700 stores in the U.K. and continental Europe, has been wanting to expand in the United States. Last year, it bid for the intellectual property of Sports Authority, but lost out to Dick's Sporting Goods.
Eastern Outfitters, which operates about 90 stores, filed for bankruptcy protection in February
In addition to its namesake retail stores, Sports Direct has a portfolio of fitness, fashion and sports brands that include Everlast, No Fear and LA Gear. In February, it took an 11% stake in apparel brand French Connection. The company is under pressure to make acquisitions to boost profits to meet its growth targets, according to a report by The Guardian.