At first glimpse, Space NK and Walmart might seem strange bedfellows. Space NK, founded by Nikki Kinnaird in 1991, is known for building budding and upscale brands like Diptyque and Foreo.
Will the Walmart shopper even know brands like By Terry or be prepared to shell out $27 for one of the brand’s mascaras or $64 for a face cream?
Walmart launched BeautySpaceNK March 15 on its website with plans for 250 installations planned to roll out this summer.
There are 15 brands in the first wave representing more than 600 SKUs that will be on an endcap near an inline aisle. The products include Mario Badescu, eyeko, By Terry, Slip, Patchology, Philip B., PSA, Foreo, Goldfaden MD, Ameliorate, Babe Lash, Grow Gorgeous, Mama Mio, Mio and Summer Camp, a Walmart exclusive brand. Space NK has created a division to devote solely to the effort.
“As a top beauty destination, Walmart is continuously looking for new ways to wow and surprise customers by expanding our selection and offering convenient access to the best product assortment across beauty. We are thrilled to welcome Space NK to Walmart as the latest move in bringing our customers exciting new additions online and in the beauty aisle,” said Laurie Tessier, merchandising director for Prestige Beauty at Walmart in a release.
Some in the industry wondered if this is just Walmart’s volley to keep up with other industry mass and class collaborations.
This partnership follows on last year’s moves by Target to add Ulta Beauty departments and Kohl’s hook up with Sephora to open stores within its stores.
It is a debate on how those two are faring—although many think Sephora had a slow start, NPD numbers report Kohl’s dollar share of grew two points following the partnership debut. Nonetheless, the Kohl’s shopper is driven by deals and it still a question if Kohl’s can succeed at beauty after several tries.
Representatives of both Target and Ulta say that combination is hitting expectations and building business for both without cannibalizing from the other.
Following those deals, all eyes were on any other joint efforts that could pop up. At the time, Walmart didn’t rule out any idea. But even the most seasoned industry watchers didn’t expect Space NK.
In 2020, Space NK closed its eight freestanding stores in the U.S. Instead the company nabbed space within Nordstrom and Bloomingdale’s for mini departments. Walmart offers Space NK the chance to access to millions of customers weekly.
There are two diverse views of the tie up.
The cons are that the Walmart shopper isn’t the same target as the Space NK brands. Also, the massive Walmart stores don’t have the right ambience and sales assistance to move the lines. “Always take the consumer match,” one former brand president advised.
It will be up to Space NK to make sure the presentation hits the mark. “Walmart doesn’t always do well enough even with mass brand,” observed one beauty executive. “There are out of stocks and other issues that will be up to Space NK to manage.
With a stable of more than 4700 stores, not all Walmart doors are pristine and updated. Odds are the chain will put the Space NK into the right doors.
A former buyer added, “It is definitely an upgrade, but I think that the brands that will be part of the section need to be carefully curated. I am not sure the Walmart customer is the Space NK Customer.”
The flip side of the coin—shoppers don’t care where they buy, they want to buy when they want to buy. Walmart, while not every store is suited for the products, does have some updated doors such as its Supercenter in North Bergen and those near its headquarters.
The retailer has made tremendous strides in the past few years under both Jody Pinson and Musab Balbale (who recently departed for CVS) transforming the instore experience. Also, the numbers don’t lie–Walmart serves more than 90% of the U.S. shopping base.
Last year, Sharon Chuter put her vote of confidence in Walmart noting that if she is to be a brand for all, she needs to be accessible. She created an offshoot of her prestige UOMA just for Walmart called UOMA by Sharon C.
The selection from Space NK is also tightly edited with an eye on the Walmart shoppers. The chain has always positioned beauty as an escape for harried shoppers—but one that is also easy and convenient. With Space NK it is following the Ulta Beauty model of offering mass and class under one roof. In the case of the Space NK items, shoppers can grab from all categories in one area.
“Walmart was one of the winners of COVID,” said one source. “There are Walmarts in wealthy towns where department stores have gone out of business so this will be a convenient location for prestige brands. And with gas prices people don’t want to drive around so Walmart is convenient.”
A quick glance at Walmart.com is also eye opening. Via third party sellers customers can nab everything from La Mer to Olaplex. That suggests that not all Walmart consumers are only hunting value.
Whether the gamble pays off will be determined at the cash register. The consensus is that the odds are in Walmart and Space NK’s favor.
About Faye Brookman
Faye Brookman has reported on the beauty and personal care industry for more than 35 years. She contributes to beauty industry publications including Women’s Wear Daily and CEW Beauty News. Her articles have also appeared in USA Today, The Wall Street Journal and The Washington Post. She also is a frequent moderator for discussions of the beauty business and retail industry.
A graduate of Syracuse University’s S.I. Newhouse School of Public Communications, Brookman resides in Skillman, N.J.
In case you missed it, check out Faye’s previous article about Retailers To Watch In The Beauty Space.
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