In the past, Christmas shopping meant crowded department store counters with last-minute shoppers bustling around under towering holiday displays and sparkling lights. Instead of being assisted by salespeople wearing red and green sweaters, Christmas shopping has now taken place indoors, with consumers filling stockings from the sofa.
Department store bosses are kept up at night by customers like Quinn Kelsey. Rather than beauty counter salespeople, the 38-year-old Denver resident gets her cosmetic ideas from TikTok videos and other social media content. She utilizes an AI chatbot to see how a particular lipstick or foundation might appear on her and to receive product recommendations that meet her budget. She typically purchases from Amazon.
Beginning in the late 1990s, department stores—once the definitive destination for beauty—lost both revenue and power to skincare and makeup trendsetters. At that time, the expansion of Ulta Beauty and Sephora made cosmetics purchasing more enjoyable and self-service.
However, retailers of all stripes are vying for a piece of the $129 billion (€110 billion) US cosmetics and personal care market due to rapidly shifting consumer preferences. Because e-commerce is so simple, the rivalry is more intense than before.
According to market research firm Euromonitor International, Amazon is the biggest online retailer of cosmetics and personal care items in the country and has gradually added high-end beauty brands to its enormous assortment.
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