Department Stores Adjust Tactics As They Try To Reclaim Beauty Market Share

For more than a decade, department stores have lost beauty product market share to Web sites, airport shops, boutiques and discount pharmacies. Now they are fighting back, eager to reclaim some of that lost business. Kohl’s is revamping its beauty department, while J.C. Penney has broadened its alliance with Sephora and has repositioned its salon services. But stores are also recovering market share by emphasizing high-end beauty products. Premium-price products outpaced the cheaper mass segment last year, partly because of the improving economy, according to analysts. Another strategy: selling expensive dual-purpose products, like foundation with sunscreen or anti-aging ingredients.