Beauty is a Good Look in Retailing
Retailers with beauty assortments may be noticing an uptick in traffic as that category continues to shine. Brands and banners are expanding their offerings in this space, and fresh data shows that such efforts mirror marketplace demand.
According to the recently released 2025 State of Beauty report from NielsenIQ (NIQ), the category posted a 7.8% gain in North America on a year-over-year (YoY) basis. E-commerce, including social commerce that’s exploding across various platforms, is a significant growth driver, while in-store retail sales are holding steady.
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In this environment, NIQ analysts noted that brick-and-mortar stores need to plan for dynamic omnichannel trends. “The retailers of the future will need to transform the in-store experience to meet the needs of modern consumers,” the researchers concluded, noting that shoppers appreciate tactile experiences and personalized consultations.
Tara James Taylor, senior VP of beauty and personal care at NIQ, said that retailers can adjust for success as demand remains strong. “In the rapidly changing beauty industry, success in 2025 is a delicate balance. The dynamics between innovation and tradition, affordability and luxury, sustainability and scalability, and personalization and inclusivity are reshaping the market for beauty manufacturers and retailers. Finding the right balance will be crucial for those aiming to thrive in the $1 trillion global beauty market,” she observed.
Many retailers are heeding this opportunity. Target Corp., for example, recently added more than 2,000 products and nearly 50 new brands to its beauty assortment. Walmart Inc. has also expanded its focus in beauty, introducing try-on technology and launching a premium beauty platform on Walmart Marketplace; that retailer’s recent 16% spike in global e-commerce and a 29% lift in global advertising exemplify avenues for more growth in this booming category. Dollar General is likewise investing in this area, adding three new private label brands in its beauty, skin and hair care segments.
