Macy’s will buy high-end beauty and spa retailer Bluemercury for $210 million in cash, the department store said Tuesday.
The company also raised its annual profit outlook and said its holiday sales were better than expected.
Bluemercury will continue to operate as a stand-alone retailer and co-founders Marla and Barry Beck will stay on as CEO and COO, but Macy’s says it may bring Bluemercury products and services into its Macy’s and Bloomingdale’s stores.
Macy’s has been doing well among department store retailers, and this move will help broaden its luxury-customer base. In his comments Tuesday, CEO Terry J. Lundgren showed that he believes that Macy’s and Bloomingdale’s customers are ready to spend a bit more on cosmetics and spa services.
“Beauty is a core signature business for Macy’s and Bloomingdale’s and a continued platform for our company’s profitable sales growth,” Lundgren said in a statement. “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.”