Wednesday August 7th, 2013 - 11:13AM
In a deal to expand its beauty business, Target Corp. said it would acquire the DermStore Beauty Group, parent of dermstore.com. The website offers a wide range of lotions, creams and other health and beauty aids including an array of appliances, such as, for example, curling irons, and devices, including microabrasion electrics.
Target stated that the acquisition puts it in a position to expand its share of the rapidly evolving online beauty market. The retailer added that the deal would further differentiate its offerings in an important retail segment.
Following the transaction’s closing, DermStore will become a wholly owned Target subsidiary. DermStore, Target noted, will continue to operate as a separate entity and, online, will retain the dermstore.com name.
“There is no doubt that the online beauty industry is growing rapidly, and this unique opportunity enables Target to gain insight into the superior, online customer experience DermStore provides,” Casey Carl, president of multichannel and senior vp/enterprise strategy, Target, said in a statement on the acquisition. “Not only will DermStore’s 750-plus brands offer Target expanded breadth across the beauty and skincare industries but also access to exceptional content and helpful resources we know consumers want.”
Dan Obegi, current CEO of DermStore, will become president of the Target subsidiary and will report to Carl.
“DermStore’s success was built on understanding the beauty market and catering to a shopper who’s seeking a wide array of prestige products, exceptional service and product expertise,” Obegi said. “Our customers have come to trust us to consistently deliver a quality experience, and we are confident that this acquisition will benefit Target’s guests and expand Target’s online market share.”
Target related that it does not believe the acquisition will have any material impact to its 2013 results.