The deal would allow M&S to carve a slice of the£6 billion UK cosmetics market – in which it is weak – and enable Sephora to re-establish a UK presence after shutting up shop here in 2005. Department stores and specialists such as Perfume Shop are likely to feel the pressure if the project goes ahead.
The proposed tie-up is understood to have been inspired by the success of a similar venture in the US, where Sephora, owned by luxury goods group LVMH, has shop-in-shops in JC Penney department stores.
Marks & Spencer chief executive Sir Stuart Rose is keen to break into categories beyond its food and fashion heartlands. M&S has, for instance, opened technology departments in 25 stores. At last November’s interims, Rose said: “We continue to stretch the M&S brand into new areas and believe this is an important area for future development.”
Cosmetics and perfume retail and supply sources told Retail Week that discussions centred around the opening of 10 Sephora outlets in M&S stores, to be followed by a further 100 if successful.
Although Sephora experienced difficulties in the UK, it is successful internationally and has 515 shops in 14 countries. One source said it had learned from its early foray and saw an opportunity to partner with a well-regarded retailer. She said: “Other than M&S, there are few other British retailers with as many stores where Sephora could make an impact quickly.”
An M&S spokeswoman declined to comment on whether a deal would go ahead. She said: “We talk to a lot of people all the time”.
Sephora declined to comment.
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