L’Oreal plans to close retail locations to restructure its US luxury operations as the company grapples with severe changes to consumer behaviour amid the pandemic.
The luxe division of L’Oreal USA plans to shift investment to growth areas such as e-commerce as part of the reorganisation over the next six months, the company said on Thursday in a statement in response to inquiries from Bloomberg.
The shares rose 0.7 per cent early on Friday in Paris and they’re up 6 per cent so far this year.
L’Oreal said as many as 400 roles in the luxe division would be affected in the US, the company’s biggest market. Some will have a chance to move to another position. It didn’t say how many stores would close.
“Modernising its current distribution footprint is necessary for rebuilding the organisation around the future of the consumer,” the company said. “Luxury consumer behaviour in the US has fundamentally evolved, and L’Oreal USA will be evolving its business to meet these new consumer expectations and preferences.”
The French company, which employs about 88,000 people worldwide, has been struggling through the coronavirus pandemic as people around the world are spending less on pricey perfumes and makeup as there are fewer occasions for social interaction during lockdowns.
Even though its e-commerce grew 65 per cent in the first half of the year as consumers treated themselves to fancy things while stuck at home, it wasn’t enough to offset the decrease in overall demand for beauty products and services. Comparable sales dropped 19 per cent last quarter.
L’Oreal is not the only beauty brand facing cuts. The whole sector has been grappling with rising costs, with Estee Lauder announcing in August plans to trim 3 per cent of its workforce and close 10 per cent to 15 per cent of its free-standing stores. Retailer Ulta Beauty has said it won’t be able to bring back all of the employees it furloughed in April.
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Engine: twin-turbocharged 3.5-liter V6
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PROFILE OF STARZPLAY
Date started: 2014
Founders: Maaz Sheikh, Danny Bates
Based: Dubai, UAE
Sector: Entertainment/Streaming Video On Demand
Number of employees: 125
Investors/Investment amount: $125 million. Major investors include Starz/Lionsgate, State Street, SEQ and Delta Partners
Credits
Produced by: Colour Yellow Productions and Eros Now
Director: Mudassar Aziz
Cast: Sonakshi Sinha, Jimmy Sheirgill, Jassi Gill, Piyush Mishra, Diana Penty, Aparshakti Khurrana
Star rating: 2.5/5
Mohammed bin Zayed Majlis
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Avengers: Endgame
Directors: Anthony Russo, Joe Russo
Starring: Robert Downey Jr, Chris Evans, Scarlett Johansson, Chris Hemsworth, Josh Brolin
4/5 stars
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
VERSTAPPEN'S FIRSTS
Youngest F1 driver (17 years 3 days Japan 2014)
Youngest driver to start an F1 race (17 years 166 days – Australia 2015)
Youngest F1 driver to score points (17 years 180 days - Malaysia 2015)
Youngest driver to lead an F1 race (18 years 228 days – Spain 2016)
Youngest driver to set an F1 fastest lap (19 years 44 days – Brazil 2016)
Youngest on F1 podium finish (18 years 228 days – Spain 2016)
Youngest F1 winner (18 years 228 days – Spain 2016)
Youngest multiple F1 race winner (Mexico 2017/18)
Youngest F1 driver to win the same race (Mexico 2017/18)
Dengue%20fever%20symptoms
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Killing of Qassem Suleimani
Killing of Qassem Suleimani
Company%20profile
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