Target to Sell Its E-Commerce Beauty Subsidiary for $350 Million
Major discount retailer Target (NYSE: TGT) is preparing to sell its wholly owned beauty, cosmetics, hair care, and skincare e-commerce company Dermstore to a British buyer for $350 million in cash, The Street reports. Target acquired the online personal care retailer in 2013.
Dermstore offers a beauty product and cosmetics subscription service to its customers, and carries approximately 350 different brands in its product lineup. The move comes despite Target's $6 billion gain in market share during 2021, driven by rising same-store sales along with explosive growth in same-day delivery and digital sales. According to the company's third-quarter 2020 earnings conference call, its beauty sector came in behind decor and kitchen, but still registered "third quarter comp growth in the high teens." This gave it equal performance to food and beverage, and outpaced apparel department comps by almost double.
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Source Fool.com
