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Founded in 1969 “Sephora” combination of “sephos” - Greek for beauty and Tzipora – “female bird” in Hebrew Over 11,000 items featuring 250 brands (makeup, skincare, fragrance, bath products, hair products, beauty accessories) Acquired by LVMH in 1997 Innovative retail concept of sampling products Facts about Sephora

Sephora Global Retail Network North America (US, Canada) 391 Locations 16 Canada 375 US Flagship in NYC 151 shop in shops in JCPenney Rest of world (Europe, Middle East, etc.) 554 locations 252 – France Flagship on Champs Élysées 284 – Rest of Europe 18 – Middle East Total global retail locations : 963 China(HK, Mainland) 18 locations Opened Flagship in Singapore

Innovative High Quality Consistent Design Exclusive Back and White VIP card Fun Part of a Club Sampling Mecca Friendly Helpful Knowledgeable Product Symbol Persona Organization Brand Identity

" " - Daniel Richard President and CEO of Sephora Holdings (US) Every aspect of the stores from the architectural layout and interior design to the background music chosen to the customer experience is designed to reinforce a shopping experience emphasizing freedom, exploration, discovery and a personal definition of beauty

Consistency in Store Interior

Free standing racks of different brands Emphasis on personal sampling and discovery Prominently displayed prices End units of cotton swabs, mirrors, tissues and makeup remover to encourage sampling No pushy commissioned sales clerk Locations became the advertising Core Competencies of Sephora

Keys to Driving Sales For every €100 spent, receive a free gift Cash them in at the 100 point, or save them for larger perks If you forget your card, they can look up your number with your email address After €350 spent in a calendar year, you are upgraded to VIB status.

I’m a Very Important Beauty Insider, are You? Earn with €350 in purchases Invitations to exclusive Sephora Events & their Holiday Party A holiday gift card (more you spend, more you get back!) Exclusive monthly promotions & lot of freebies Access to a private VIB hotline where you can reach the pros 10% off coupons

Gift Cards 10% of their holiday sales business Never expire Can look up your balance on line Comes packaged in a mirror

Catalogs/Web Presence Catalogs represent 5% of the business Website account for 10%

Brands My Visits/Research 6 visits between Sept. 15-Nov. 11 Purchased 3x and returned 1x Contacted the Mgr. - Afif Haddar and interviewed him on Nov. 11 at the store

Most popular item currently at store Palette Sephora in a Box 29.90€ with Sephora VIP card XXL makeup palette with a prism color sublime and generous multiplies the make up looks. The +: palette contains a booklet of 24 pages to make all possible with full makeup tips and advice. Sells out every year during the Holidays

Current Problems with Construction Building of the Marriot Hotel next door Façade from August through November ‘09 5% monthly savings on rent during renovation Small effect on sales

Kristi Vannatter Title