The department store is also moving forward with the rebranding of its salon business, which is expected to roll out nationwide in 2016. Penney's has said that its salon customers typically visit the store eight times a year and spend twice as much as the average customer.
Macy's in March completed its $210 million acquisition of luxury beauty retailer Bluemercury, which currently has 66 stores and another 10 planned by the end of the year. This fall, the mid-level department store will open four Bluemercury shops within Macy's stores.
Though there are no plans yet to launch the nameplate's spa services in its Macy's locations, CFO Karen Hoguet said earlier this month that the company is "absolutely" considering the idea.
With so many retailers gunning for a piece of the $11.2 billion prestige beauty market, Micallef said the ones with the most upside are those that do more than just sell products, and offer something extra.
He pointed to Saks Fifth Avenue's fragrance library, which showcases curated scents in an innovative way, as an example.
"The winners will be those that actually provide a certain experience," he said.