e.l.f bolsters its position in mass with space gains in Walmart, Target

OAKLAND, Calif. — Cosmetics company e.l.f. Beauty is poised to grow its space in the mass channel, getting more space in Walmart’s beauty section and optimizing its assortment in Target after gaining more space earlier this year, according to its executives.

The beauty brand will be getting a 20% increase in its linear footage in Walmart, president and CFO John Bailey told analysts this week when announcing its second-quarter financial results. The expansion, part of the company’s initiative to expand its brand penetration, began in Q2 and is expected to finish in the fourth quarter. At Walmart, e.l.f CEO Tarang Amin said that there is a large potential for the brand’s growth as the retailer looks to elevate its beauty offering.

“We have less than 10% of the Walmart doors with more than 4 feet, so it's a tremendous opportunity for further expansion,” Amin said.

The Walmart expansion follows the brand’s expansion in Target, where it gained 50% more shelf space earlier this year, and where Amin said the company currently is working to optimize its merchandising and assortment. It also follows the launch of e.l.f products into 200 Ulta stores from its beginnings on Ulta.com and the introduction of e.l.f. in more than 200 Superdrug stores in the United Kingdom.

Amin, in speaking to analysts, tied e.l.f.’s growth to its constant efforts to add to its portfolio — including this year’s launch of e.l.f. Beuty Shield line of seven skincare products.

“The reason we’ve been able to grow … is first our ability to engage young diverse makeup enthusiasts. For our consumer, makeup is not a discretionary purchase,” Amin said. “Second is the business model itself. Take a look at our ability to launch something new almost every week, which gives us tremendous arsenal from which to be able to bring our retail partners a proven and validated innovation where we're not trying to guess what the next trend or fad is going to be but actually have products that are performing in the marketplace.”