CoverGirl cosmetics maker Coty Inc. is making an about-face, years into a turnaround that hasn’t yet taken hold. The company is doing away with a revival plan hinged on bringing out new products as well as adding businesses, while its new strategy is to reduce debt, downsize and turn back a failed makeover of one of its best-known and most sizable brands, The Wall Street Journal reported.
The fragrance and makeup seller has floundered after acquiring many beauty brands in 2016 from Procter & Gamble Co. (P&G). Its stock has shed half of its value as of the deal and the company took $4 billion in write-downs on the P&G businesses as it grappled with digesting the brands and as drugstore staples like Max Factor and CoverGirl fell more out of favor.
CoverGirl has reportedly been losing share for years as skin-product and cosmetics shoppers have left the drugstore to shop in specialty stores like Sephora or make purchases online. Coty attributed the decline to losses in shelf space at merchants like Walmart Inc. and CVS Health Corp. as the popularity of the brand flagged and stores stocked up on competing names.
Coty tried to remake CoverGirl as it moved away from TV ads in favor of social media influencers and made the development of new items quicker. It also opened a two-story Times Square store in New York City that had CoverGirl-branded workout gear as well as sequined pillows next to blush and mascara. It also got rid of “easy, breezy, beautiful”– CoverGirl’s famous tagline. The firm has now brought back the slogan and has come back to TV advertising.
As reported in November, CoverGirl opened its first brick-and-mortar store last year. The minimalist interior focuses on a black-and-white palette, with bright colors used in limited pops to add a bit of excitement to the otherwise rather muted interior.
Inside, shoppers are invited to try on and test out a range of CoverGirl beauty products. And the space seeks to aid that experimentation with a series of high-tech features.