Friday, July 29, 2016
Breaking Beauty News: Walgreens to Shut Down Drugstore.com and Beauty.com
Well it looks like Fridays are the days for breaking news in the beauty world. Last Friday I shared that L'Oreal is buying IT Cosmetics, and today this:
From The Wall Street Journal:
Walgreens Boots Alliance Inc. on Thursday said it is shutting down two websites--Drugstore.com and Beauty.com--five years after acquiring them, a sign of how traditional retailers continue to struggle with online properties.
The retailer acquired both sites as part of its $429 million acquisition of Drugstore.com in 2011. At the time, Drugstore.com and its affiliated sites were the eighth largest pureplay online retailer, according to Internet Retailer Magazine.
Walgreens new management has started to unwind that acquisition to focus its online business on its own website devoted to its flagship drugstore chain, according to a Thursday regulatory filing. Earlier this year, Walgreens sold Skinstore.com, another vestige of the Drugstore.com acquisition, to the Hut Group, a U.K. online retailer, according to a company spokesman, who didn’t specify the sale price.
The company is still trying to fine tune its e-commerce strategy but clearly wants to focus more of its resources on one main site. “They want to make sure they can invest more of the equity in Walgreens.com,” said Brian Owens, a director at the consultancy Kantar Retail. “Drugstore.com and Beauty.com are distractions.”
Read the full article here.
In that article, Walgreens states that both sites will be closed by "the end of September". In a related article on Drugstorenews.com, Walgreens stated that over the past year, they have been focusing their efforts on improving the Walgreens.com website, so I'm guessing that they'll integrate some of the brands/products from Drugstore.com and Beauty.com into Walgreens.com moving forward. Long before this was announced, you could already find many of the same products from Drugstore.com and Beauty.com on the Walgreens website (as I've mentioned here many times).
In the next several weeks, I would expect to see some major sales on both sites. Just today, I received an email from Beauty.com alerting me to a new Summer Clearance Sale (you can check that out HERE), and I expect to see more of those types of sales as we move toward September.
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