Farfetch Plans To Shut Down Beauty Business — Retail Bum

Farfetch plans to stop selling beauty products on August 31, 2023, just a year after venturing into the beauty space.

The luxury fashion marketplace expanded its business into the beauty realm in January 2022 with its acquisition of upscale beauty retailer Violet Grey. Three months later, the company launched a select line of popular beauty brands on its platform, including those from Augustinus Bader, Charlotte Tilbury Beauty, and Dr Barbara Sturm. Later, it also began offering beauty brands such as Isamaya Ffrench and Simi Haze products.

While the company is shutting down its online beauty business, it plans to continue to own and operate Violet Grey as a standalone business within the Farfetch Group, according to Vogue Business.

The company’s exit from the beauty industry reportedly follows issues with inventory management and a slowdown in consumer demand in the U.S. While its Q1 2023 revenue rose by 8% to $556.4 million, its profit margins narrowed year over year.

Farfetch’s decision to exit its online beauty business echoes a key problem other online marketplaces and retailers face today. It is inherently difficult for these players to gain traction amidst stiff competition from giants such as Sephora and Ulta. Moreover, often, consumers turn to offline channels for…