Sephora, the beauty retailer owned by French luxury group LVMH, is exiting the South Korean market in May.
“It is with a heavy heart that we have decided to end our operations in Korea,” Sephora Korea announced in an Instagram post on Mar. 19. Sephora Korea will gradually terminate its five brick-and-mortar stores, online mall, and mobile app stores beginning May 6.
The beauty retailer operates over 2,300 stores in 35 countries, including the U.S., France, Italy, and China. LVMH reported that Sephora achieved record performance last year as the beauty retailer’s sales and profits surged in many regions.
Backed by global success, Sephora launched in Korea in October 2019 with a flagship store in Parnas Mall in the upscale Gangnam District of Seoul. The beauty retailer currently has five stores in the country.
But Sephora struggled to gain a foothold in the competitive Korean beauty market. Experts say Sephora failed to navigate the local market dominated by domestic beauty retailer Olive Young amid challenges posed by the covid-19 pandemic, ultimately leading to the decision to pull out of the Korean market.
