The Supply Side: Walmart continues to expand its beauty business

The sale of beauty products is already a huge business at Walmart, with the retailer garnering roughly 20% of the estimated $107 billion industry sales annually, according to analysts at Circana. And the retail giant continues to expand assortment and has recently unveiled another beauty makeover.

In 2025, the retailer added 72 beauty brands to its offering in stores and through its marketplace partners. The retailer said in its recent earnings call that 75% of the growth in beauty segment sales has come from new and premium brands like La Roche-Posay and others that appeal to consumers at all income levels. Walmart last year piloted a beauty bar in 40 stores where customers could explore new products and get advice. The beauty bar has now been rolled out to hundreds of locations, the retailer said.

The latest move focuses on a beauty-adviser employee added to 425 U.S. stores by the end of the year as stores are being remodeled. Walmart’s beauty redesign includes elevated lighting, improved sightlines, a fragrance bar and a new trending section. The beauty adviser program is being tested in select stores in Texas and Arkansas, and Walmart has said the pilot stores are delivering strong results.

Beauty advisers receive training at Walmart’s academies and can earn between $14 and $35 per hour, depending on location. The employees receive training in skincare, makeup, beauty trends and seasonal needs so they can provide customers with personalized advice.

“Through courses such as Makeup 101 and Customer Engagement 101, they took the time to truly do a deep dive into the world of beauty,” Walmart said in a post on its corporate website. “They learned the science behind skincare routines, the art of asking the right questions to understand what a customer truly needs and the techniques to help someone navigate a sea of over 7,000 products to find their perfect match.”

Three stores in Northwest Arkansas are part of the beauty pilot — both supercenter locations in Springdale and the supercenter near the Northwest Arkansas Mall in Fayetteville.

“Walmart is here to be the most trusted and accessible beauty destination for everyone to look and feel their best every day,” said Vinima Shekhar, vice president of beauty merchandising for Walmart U.S. “We’ve launched dozens of new brands in the past year, including noteworthy beauty favorites like Pretty Smart, Being and Curology, with many still to come that will be part of the premium beauty program.”

Shekhar said through Marketplace, the retailer has been able to introduce new brands, including COSRX, T3 and Beachwaver. Since the launch last summer, premium brands such as L’ange and Victoria’s Secret have seen double-digit growth, with T3 hitting triple-digit growth.

MARKET SHARE GROWTH
Walmart has quietly grown its beauty market share, and in this uncertain economy, higher-income consumers are also giving Walmart a fresh look.
Data from NielsenIQ found that the number of Walmart beauty shoppers from households earning more than $150,000 is up 13.6% year over year. Also, the number of beauty shoppers between the ages of 30 and 34 has grown 12.9% from a year ago.

NielsenIQ estimates that 76% of beauty buyers in the United States have purchased from Walmart. Although Walmart is known for value, its beauty customers aren’t just value shoppers. The data firm found that premium beauty at Walmart is also growing at a healthy clip, with 12% more buyers and trip growth rising 13% year over year.

“Shoppers are responding to elevated offerings in haircare and fragrance, and brands are proving that Walmart can scale premium just as powerfully as it scales mass,” said Jacqueline Flam Stokes, managing director of beauty and health at NielsenIQ.

She said beauty brands also pursue Walmart because of the 150 million customers who shop each week at its 4,600-plus stores, and on its $150 billion e-commerce platform that has grown by double-digits for nine straight quarters. Walmart pursues beauty brands to attract high-value beauty shoppers who are 71% women, disproportionately younger, digitally engaged and higher-income.

INDUSTRY GROWTH
U.S. beauty industry performance was nearly on par across the prestige and mass retail sides of the business in the first quarter of this year. Prestige or premium retail dollar sales grew by 6% to $8.1 billion, compared to the same period last year, as mass retail sales rose by 7% to $18.1 billion, according to Circana.

Unit sales in both segments saw low single-digit growth in the quarter compared to a year ago, largely driven by value-oriented brands.

“Mass and prestige beauty are growing at nearly the same rate for the first time in five years,” said Larissa Jenson, global beauty industry advisor at Circana. “Fragrance, facial skincare, hair treatments, and personal care products continue to benefit from consumers prioritizing self-care and wellness-driven products. We expect these areas to remain strong this year, as shoppers continue to shop across channels, seeking affordable yet high-performing beauty products that feel good and work well.”

Circana reports makeup was the softest-performing category in the first quarter among premium retailers and mass retailers. There was modest dollar growth, which was offset by declining unit demand. Lip treatments and lip liner stood out as top performers in both segments, delivering growth in dollars and units, while blush and bronzer also posted solid gains.

The hair category was the fastest-growing category by dollars among premium retailers and a top unit driver. Skincare product sales also grew with face creams, serums, and eye treatments being popular.
Circana reports that fragrance was among the strongest performers overall, with gains among mass retail of double-digit increases in women’s fragrances. Premium retailers also saw double-digit sales gains in luxury products.

Online and social shopping continue to capture the share of beauty retail, reinforcing a structural shift in how consumers discover, trial and replenish products, according to Circana.

Editor’s note: The Supply Side section of Talk Business & Politics focuses on the companies, organizations, issues and individuals engaged in providing products and services to retailers. The Supply Side is managed by Talk Business & Politics.