A lot has been said about Macy’s recent weak stock performance. CEO Terry Lundgren has come under fire, and the company has tried virtually everything to stay relevant, from adding Best Buy kiosks, SunGlass Hut in shops, and off-price channel called “BackStage.” I scoffed at a lot of these strategies as ‘spaghetti against the wall’-however, one has my attention: the acquisition of luxury cosmetics and beauty retailer BlueMercury. The fastest growing beauty retail concept, Blue Mercury is basically a free standing, super high-end Sephora, carrying luxe products like La Mer, Bobbi Brown, Oribe, and Bumble and Bumble—but there’s a twist.
Consumers can also book services like peels and dermabrasion. According to CEO Terry Lundgren at the recent Global Retailing Conference in Tucson, AZ the concept is working so well that plans are in place to roll out Blue Mercury shop-in-shops in select Macy’s locations. Macy’s will also launch its first private label cosmetics brand, M61. Much like Sephora’s contribute to the slow turn at $JCP JC PENNY, BlueMercury just may be the magic elixir to lift the stock. I will certainly be watching this beauty-hotspot closely.