WESFARMERS Health has launched its first beauty and wellness standalone store, Atomica, capitalising on its learnings from the success of Priceline.
The pilot store at Castle Towers in Sydney was previously a Priceline, without a pharmacy offering, and is the first step in a planned expansion to other parts of Australia in 2025.
It retails viral brands such as Bubble Skincare and Korean beauty favourite Innisfree, along with established brands like The Ordinary, La Roche-Posay, Clinique, Conserving Beauty, Hairification, e.l.f. and Milani.
Atomica also has dedicated 'Glow Advisors' whose role is to assist customers with tailored beauty advice and in-store services.
Wesfarmers Health Retail Director Richard Pearson said: "We saw a gap in the market for an affordable and accessible beauty-focused retail proposition that delivers an inspirational in-store experience with coveted international brands and locally-loved Australian brands".
Pearson said that sitting between high-end beauty specialist stores and a convenience grocery offer, the Atomica focus is on inclusivity and "inspiring customers with affordable ways to invest in their beauty and wellness".
Retail expert Professor Gary Mortimer told Pharmacy Daily "it's a smart move" by Wesfarmers.
"It is a very clever conglomerate of businesses and they have a history of leaning in and out of businesses or sectors that are doing well, then moving out when the sector doesn't look like it's going to grow or when there's too much competition," Prof Mortimer said.
"Moving into beauty is where Wesfarmers will see growth.
"Beauty, cosmetics and haircare have been pretty immune to cost-of-living crises, it's the classic 'lipstick effect', where despite times being tough, we want nail polish, we want a good skincare regime.
"That sector hasn't faltered, in fact, it boomed during COVID when we were at home and wanted to do something for ourselves."
Prof Mortimer noted that the Sister Club loyalty program has worked very well for Priceline, and Wesfarmers has integrated the program across Atomica, Priceline and Priceline Pharmacy.
"I think Wesfarmers has realised something that pharmacists often don't - that the predominant element of a pharmacy is retail," Prof Mortimer said.
Chemist Warehouse launched its own beauty store, Ultra Beauty, which focuses on premium brands.
Starting out in 2018 as a shop-in-shop experience, Ultra Beauty has stores in Victoria, NSW, Qld, ACT and SA, as well as New Zealand. KB
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