Department stores try to distinguish themselves as beauty lovers turn to TikTok and Amazon

"She uses an AI chatbot to get product recommendations that fit her budget and to see how a certain foundation or lipstick would look on her. When she buys, it's usually from Amazon. "I use Chat GPT as my personal beauty consultant," Kelsey said. "Department stores? I'll walk through one for the decor, but they've basically lost me unless I can get the same product-research experience there that I can get scrolling through my phone at home."

"Once the ultimate beauty destination, department stores lost sales and their authority as skincare and makeup trendsetters starting in the late 1990s. That was when the growth of Sephora and Ulta Beauty made shopping for cosmetics more of a playful, self-service experience. But fast-changing consumer preferences have all types of retailers racing to outdo each other for a slice of the $129 billion U.S. beauty and personal care market. The competition is fiercer than ever due to the ease of e-commerce."

"Social media also has provided new sources of beauty guidance. Instead of store advisers, many consumers look to videos by influencers, beauty brand founders or dermatologists for advice. Shoppers also turn to TikTok and Instagram for information about "dupes" - drugstore versions of more expensive products. Amazon, which has slowly added premium beauty brands to its massive selection, is the nation's largest online seller of beauty and personal care products, according to market research company Euromonitor International."

Consumers increasingly obtain makeup and skincare guidance from social media, influencers, brand founders, dermatologists and AI chatbots instead of beauty-counter salespeople. Many shoppers use AI chatbots for tailored product recommendations, virtual try-ons and budget fits, and frequently purchase through online marketplaces like Amazon. Department stores lost authority as beauty trendsetters beginning in the late 1990s as Sephora and Ulta popularized playful, self-service cosmetic shopping. Fast-changing preferences and easy e-commerce have intensified competition across retailers for the $129 billion U.S. beauty and personal care market. Retailers with both physical and online presences are investing in upgrades, while stores serve increasingly as showrooms.

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