The news: Beauty brands are opening more standalone stores as they look to make up for declining department store sales and attract attention in a highly competitive market, per Business of Fashion.

• Chanel opened more than 25 beauty boutiques in 2025, while Estée Lauder opened 27 net new freestanding locations worldwide in the first nine months of its fiscal 2026.
• Brands like Jones Road Beauty and Sisley are also relying on stores to grow their clientele and distribution points.

Why it matters: Department stores’ declining influence and footprints are forcing beauty brands to reassess their wholesale strategies. Some, like Estée Lauder’s Bobbi Brown, are pulling distribution from department stores entirely, while others are hedging their bets by opening stores that allow them to stay close to their target customers.

For some brands, standalone stores represent a valuable opportunity to establish their luxury positioning and deliver an experience that exceeds what is possible in a multibrand setting. For example, Estée Lauder’s recently opened fragrance stores in New York City’s Soho neighborhood are meant to be “the most pure expression of a brand that [the company] can make,” down to the employees who staff the boutiques, Tara Simon, president of the Americas, told Women’s Wear Daily. Of Sisley’s more than 80 stores worldwide, 18 are flagship maisons that also offer services like facials, blowdrys, and massages, giving shoppers even more reason to visit.

Implications for retailers: Focusing on D2C channels could help beauty brands account for some of the decline in department store sales, but opening standalone stores comes with its own set of complications. Physical retail is expensive to operate, especially amid growing demand for locations in the most desirable retail corridors. On top of that, brands need to give shoppers a clear reason for coming into the store, whether it’s unique design, top-notch service, or desirable products or services.

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