Macy's to buy Bluemercury spa and beauty chain for US$210m
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US department store chain Macy’s has agreed to buy the beauty and spa chain Bluemercury for US$210m (€186m, £138m) to broaden the retailer’s customer base.
Washington-based Bluemercury operates 60 outlets in 18 states and has a growing e-commerce business. Macy’s, which also owns the upper-market Bloomingdale’s chain of department stores, plans to bring some Bluemercury boutiques and products to some department store locations.
“Beauty is a core signature business for Macy’s and Bloomingdale’s and a continued platform for our company’s profitable sales growth,” said Terry J Lundgren, Macy’s chief executive. “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.”
Bluemercury spas offer services including facials, massage and waxing, but Macy’s has not decided what spa services, if any, it will offer in stores – according to spokesperson Jim Sluzewski.
“Spa services are integral to Bluemercury’s specialty stores, which are the top growth priority to start,” said Sluzewski. “We will then start looking at what might make sense for Macy’s stores.”
Bluemercury, which was co-founded by Marla Malcolm Beck and Barry Beck in 1999, began as an online business that later expanded to physical locations in Georgetown and Dupont Circle in Washington DC. Since then, the company has rapidly grown to generate more than US$100m in annual revenue.
Marla Malcolm Beck will stay on as chief executive and president Barry Beck will remain the company’s chief operating officer.
The deal is expected to be finalised by 2 May 2015.
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