Sephora's impressive growth signals retail recovery in tough market
- Guillaume Motte presented insights at the NRF event in Paris, discussing growth potential amid the challenging retail environment.
- Sephora reported a 9% sales increase in the U.S. and 20% in Europe last year, emphasizing market share growth.
- Motte concluded that creating engaging retail experiences is crucial for achieving success in both physical and online shopping.
In September 2025, Sephora's Chairman and CEO Guillaume Motte addressed attendees at the National Retail Federation's first major event in Paris. Despite challenging retail conditions around the world, he emphasized the potential for growth if retailers and brands actively work to create demand. Motte revealed that Sephora achieved significant growth in 2024, with U.S. sales increasing by 9% and European sales rising by 20%. These developments demonstrate that innovative brand entrants can expand the market rather than merely competing for existing sales. Motte shared his vision for Sephora, highlighting inclusivity as a core principle guiding the company's purpose. He noted how the retailer's distinct approach aligns with evolving consumer preferences, particularly among Gen Z shoppers who are increasingly interested in in-store experiences. This focus on experiential retail allows Sephora to thrive, even in the face of increasing online competition. Motte explained that around one-third of Sephora's business is driven by online sales, but acknowledged that the lines between physical and online shopping continue to blur, leading to a more integrated shopping experience for consumers. Sephora's operational strategy also involves utilizing its extensive store network for online order fulfillment, with 3,400 warehouses strategically located within urban areas. This infrastructure allows the company to provide rapid delivery services and engage customers in real-time interactions. Recognizing both the potential and challenges posed by seasonal shopping trends, Sephora has introduced summer activations at popular vacation spots to maintain customer engagement during traditionally quieter months. Lastly, Motte underscored the importance of Sephora's staff, which comprises approximately 45,000 individuals who deliver enriching shopping experiences. The CEO indicated that promoting from within has been a priority, with two-thirds of employee promotions being internal, and aims to increase this to three out of four in the future. By fostering a culture of career growth and professional development, Sephora reinforces its commitment to service excellence and reinforces its competitive edge in the retail landscape.