Hard on the heels of this groundbreaking move, Target has sold Dermstore.com, a leading online retailer of prestige and specialty beauty brands in the US, to THG (formerly The Hut Group) for US$350 million.
UK-based THG is the largest online beauty retailer in Europe and raised a massive US$2.6 billion through an IPO (Initial Public Offering) on the London Stock Exchange last September.
THG has been expanding rapidly over the past few years through acquisitions such as Perricone MD last September, which joined its portfolio including ESPA, Christophe Robin, the luxury French hair brand, Eyeko, Illamasqua, Lookfantastic and RY.com.au, Australia’s largest haircare and skincare online store.
The Dermstore.com buyout is the first global investment THG has made following the successful IPO.
Founded in 1999 with the goal of bringing professional grade skincare to the US mass market, Dermstore.com offers more than 100 brands across skincare, haircare, makeup and body care.
THG owns Glossybox.com, the beauty subscription company, and Dermstore’s own subscription service will expand the company’s beauty box business in the US.
The long-term aim of THG is to become a leading global digital player outside its European base, helping the beauty industry to accelerate channel shift from offline to online.
THG’s own brands will also benefit by greater access to the US market.