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Target to buy skin care retailer DermStore.com
August 6th, 2013
MINNEAPOLIS – Target Corp. plans to to acquire the DermStore Beauty Group, which operates the skin care e-commerce site DermStore.com.
Terms of the transaction, which is expected to be completed in 60 days, weren't disclosed. Target said Tuesday that the deal positions the discount store chain to boost its share of the fast-growing online beauty market and differentiate its offerings in that retail segment.
Founded in 1999 by a dermatologist, DermStore features more than 26,000 SKUs and 750 authorized brands such as SkinMedica, SkinCeuticals, Obagi and Dermalogica. The company recently launched two other websites, hairenvy.com and blush.com, extending its reach to cosmetics and hair care.
"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 vice president of enterprise strategy at Target, said in a statement. "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."
Plans call for DermStore to become a new, wholly owned subsidiary of Target and to continue to operate as a separate entity under its online name, DermStore.com.
Dan Obegi, DermStore's chief executive officer, will be president of the new 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 stated. "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."