Macy's acquires 60-store beauty retailer Bluemercury
Cincinnati -- In its first acquisition in 10 years, Macy’s has signed an agreement to acquire luxury beauty products retailer Bluemercury for $210 million in cash. The privately held Bluemercury, based in Washington, D.C., currently operates about 60 specialty stores in 18 states, primarily in prime street-level locations and urban lifestyle centers. Most locations include in-house spas. The company also operates an online business.
“Beauty is a core signature business for Macy’s and Bloomingdale’s and a continued platform for our company’s profitable sales growth. With Bluemercury, our company can access a new channel to reach additional customers, add new dimensions to our product offering and apply our expertise in omnichannel retailing,” said Terry J. Lundgren, Macy’s chairman and CEO.
The Macy's chief said the company plans to operate and significantly expand Bluemercury stores as a standalone business with an enhanced omnichannel component that provides for a seamless customer experience across stores, online and mobile.
"Concurrently, we also plan to add selected Bluemercury products and boutiques to Macy’s stores nationwide," Lundgren said.
Bluemercury will continue to be led by Marla and Barry Beck, who co-founded the company in 1999. Its team of approximately 500 associates will remain in their current roles operating a stand-alone Bluemercury specialty business.
"With the full weight of Macy’s resources, we will be able to accelerate our store penetration across the United States, bringing our specialty store format to urban and suburban markets throughout the country,” said Barry Beck, Bluemercury’s COO. “We are thrilled to team up with Macy’s in this next chapter of our growth and we especially want to thank The Invus Group who has been a great partner since 2006.”
Bluemercury will report directly to Lundgren. Marla Beck will continue as Bluemercury’s CEO and president. Barry Beck will continue as COO.
The transaction is expected to be completed in Macy’s, Inc.’s fiscal first quarter (which ends on May 2, 2015) and be accretive to Macy’s, Inc.’s earnings in its first full year (fiscal 2016).