Consumers in U.S., Europe and the U.K. are increasingly favoring specialist retailers when purchasing their beauty products, a UBS report showed Monday.
The shifting trend in consumer habits poses another threat to department stores at a time when they're already being impacted by a growing preference for online shopping.
"We see scope for a channel shift in favor of specialist retailers. 23 percent of consumers surveyed are planning to purchase more items at specialist stores, the highest rate among all the channels covered in our survey," UBS analysts said in its "Who's winning with specialist retailers" report, which covered data from eight million records.
Specialist beauty retailers include L'Oreal, Sephora, Boots and Estee Lauder. They offer make-up, perfumes and skin care products with a more hands-on experience than traditional department stores. According to UBS, they make up between 15 and 20 percent of the $440 billion global beauty market.
Studies show that millennials are increasingly more interested in experiences.