Jean-André Rougeot was appointed chief executive officer of Sephora Americas. Sephora, the No. 1 prestige beauty retailer in the United States, is looking to further solidify its top position within an increasingly competitive industry.
Rougeot is a smart choice for Sephora. Under his 12-year tenure as CEO of Benefit Cosmetics, the brand expanded globally and sales passed the $1.5 billion mark. Sephora’s global president and CEO said, “Jean-André’s extensive leadership track record, breadth of knowledge of the North American prestige beauty and retail marketplace, as well as a Sephora brand partner for more than a decade, set him up to lead our teams to continue fueling our 20 year North America success story.”
This leadership change comes at a weak time for Sephora. Ulta Beauty —Sephora’s main competitor — continues to soar. During the first quarter of 2018, Ulta reported a 17.4 percent increase in sales — reaching $1.5 billion — while Sephora’s sales only increased by nine percent.
Analysts also noted that the store’s abundance of products has created an environment that is becoming increasingly difficult for shoppers to navigate. “Sephora has incubated and added so many brands in so many areas, but with no clarity or point of view,” said Wendy Liebmann, CEO of WSL Strategic Retail. “There is a lot of stuff in the store right now that has taken away from what was the unique proposition — this orderly but immersive beauty environment.”
Another challenge that Rougeot will have to address is the shift taking place away from makeup to skincare. While the beauty industry shows no signs of slowing down, there has been a surge in the number of people embracing natural beauty and taking a minimalistic approach to makeup. Brands such as Glossier, whose slogan is “Skin first, makeup second,” further encourages customers to make their skincare routine a top priority.
Regardless of the potential obstacles, Rougeot seems ready to take the company to the next level. “I’m very excited to join Sephora and look forward to working with the team to build on the success of this iconic omni-retail brand,” said the executive. “Together, we will continue strengthening Sephora’s brand partnerships, innovating and delighting clients with the best experience and assortment of prestige beauty products, whether they are shopping in our stores or across our outstanding digital platforms.”
