Department stores try to distinguish themselves as beauty lovers turn to
TikTok and Amazon
[December 22, 2025] By
ANNE D'INNOCENZIO
NEW YORK (AP) — It’s shoppers like Quinn Kelsey who keep department
store executives up at night.
The 38-year-old Denver resident gets makeup ideas from TikTok videos and
other social media content, not salespeople at beauty counters. She uses
an AI chatbot to get product recommendations that fit her budget and to
see how a certain foundation or lipstick would look on her. When she
buys, it’s usually from Amazon.
“I use Chat GPT as my personal beauty consultant,” Kelsey said.
“Department stores? I’ll walk through one for the decor, but they’ve
basically lost me unless I can get the same product-research experience
there that I can get scrolling through my phone at home.”
Once the ultimate beauty destination, department stores lost sales and
their authority as skincare and makeup trendsetters starting in the late
1990s. That was when the growth of Sephora and Ulta Beauty made shopping
for cosmetics more of a playful, self-service experience.
But fast-changing consumer preferences have all types of retailers
racing to outdo each other for a slice of the $129 billion U.S. beauty
and personal care market. The competition is fiercer than ever due to
the ease of e-commerce. Amazon, which has slowly added premium beauty
brands to its massive selection, is the nation’s largest online seller
of beauty and personal care products, according to market research
company Euromonitor International.
Social media also has provided new sources of beauty guidance. Instead
of store advisers, many consumers look to videos by influencers, beauty
brand founders or dermatologists for advice. Shoppers also turn to
TikTok and Instagram for information about “dupes" — drugstore versions
of more expensive products.
“Stores are more of the showroom, but the spark itself is happening in
TikTok,” Jake Bjorseth, founder of the Generation Z advertising agency
Trndsttrs, said.
To keep up, companies with both physical and online stores are investing
in upgrades that are meant to give beauty fans like Kelsey an experience
they can’t get anywhere else. Macy’s and Nordstrom, for example,
renovated the beauty floors of their flagship New York stores to add
more space, ultra-luxury brands and cutting-edge technology. At
Nordstrom, customers can book an appointment to get robot-applied
eyelash extensions for $170.
The makeovers were launched in time for the holiday shopping season,
which accounts for about one-quarter of all U.S. “prestige” beauty
sales, according to market research firm Circana.
More reasons to linger
Department stores chasing beauty sales are introducing some of the
serve-yourself features of Sephora — Nordstrom put in a “beauty bar”
with brightly lit mirrors where customers are allowed to take makeup
from different counters — while trying to distinguish themselves from
specialty and online rivals.
Executives from Macy's and Nordstrom said the latest changes were
designed to create an engaging atmosphere that encourages shoppers to
stay longer and spend more. The overhaul at Macy's Herald Square
included comfortable seating and skin analysis devices that help make
the case for lotions and potions costing hundreds of dollars.
In the Parfums de Marly section, customers sample scents while wearing a
virtual reality headset meant to immerse them in an 18th century chateau
the French fragrance maker cites as its inspiration.
“This is the future of beauty,” Nicolette Bosco, Macy's vice president
of beauty, said, referring to the interactive technology the department
store considers central to offering shoppers an elevated experience.
The company expects to redesign the beauty departments of 40 more
stores. The facelifts are intended to draw shoppers of all ages, Macy’s
Inc. CEO Tony Spring said.
“We’re trying very hard to take the idea of a department store and make
it intimate and friendly and convenient,” he said.
Since becoming chief executive of the department store's parent company
last year, Spring has focused on reviving Macy's by trying to attract
the higher-spending customers who power sales at Bloomingdale's and
upscale beauty retailer Bluemercury, both of which Macy's owns.
[to top of second column] |
Customers walk into Macy's flagship store, Friday, Nov. 21, 2025, in
New York. (AP Photo/Yuki Iwamura)
Nordstrom unwrapped the reimagined beauty floor of its midtown Manhattan
store in September. It includes an area where shoppers can test beauty
tools like LED light therapy masks and a “fragrance finder” machine that
provide a dry whiff of up to 60 different scents.
Nordstrom also expanded the beauty treatments area at the New York
flagship and a few other stores to include a medical spa that provides
Botox and dermal filler injections that cost $575 to $1,050.
A closer look at the competition
Sephora redefined beauty buying by installing mirrors and disposable
application tools near compact displays of both tester products and
ready-to-grab goods. The DIY concept was a major contrast from
department store counters staffed by beauty advisers who oversaw product
sampling and retrieved fresh products from locked drawers.
But even innovators have to renovate. Sephora, a division of French
luxury goods conglomerate LVMH, is in the process of updating its 720
stores in the U.S. and Canada.
The stations where customers get their hair and makeup done are getting
moved to the side for more privacy. The chain, known for its long cash
register lines, plans to expedite check-outs by equipping salespeople
with devices that accept card and contactless payments.
Ulta, which stocks drugstore beauty brands like Maybelline as well as
high-end brands, has had in-store hair salons since its founding in
1990. It’s adding ear piercing, testing robotic manicures and plans to
add robotic lash extensions like Nordstrom’s to its service menu next
year.
Walmart has moved into the turf of specialty retailers and department
stores with products from higher-end and independent brands. The
nation's largest retailer put beauty counters this year in 100 stores
where customers can try products.
Social media and the great beauty race
After working at a fashion event at Nordstrom's Manhattan flagship, Ivan
Leon, a 35-year-old freelance stylist, headed to the Tom Ford fragrance
counter. He walked away an hour later having spent $537 on two bottles
of perfume: a unisex scent named Bitter Peach and another named Vanilla
Sex.
Leon planned to wear them together, a practice known as “fragrance
layering” that he heard about on social media. The Nordstrom salesperson
caught his interest by suggesting Tom Ford scents could be applied in
tandem.
“It’s kind of cool when you combine two scents and it makes something
new,” Leon said. “I think it helps the psyche and builds confidence.”
Leon, who typically buys his fragrances online, offers department stores
hope but also represents the uphill climb they face given customers’
multidimensional shopping habits.
TikTok is not only spawning trends like “tired girl” makeup and “blurred
skin” but becoming a place where users discover and buy from new brands.
TikTok Shop, an e-commerce feature the social media platform launched in
2023, has emerged as the nation's seventh-largest online seller of
beauty and personal care items, right behind Target, according to
Euromonitor.
The online market shares of Macy’s and Nordstrom are 1% and less than
0.5%, and declining, the market research firm said.
Amazon, which accounts for almost half of online beauty and personal
care sales, aims to mimic the physical store experience with virtual
makeup try-on tools like one Sephora introduced in 2016. Sephora,
meanwhile, unveiled in March an AI-powered online tool that uses selfies
to identify potential skin concerns and make product recommendations.
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