A universally flattering lipstick is a compelling sell, but the rise of made-for-you beauty is suggesting an industry turning toward individualization.

Just as companies like Sephora and CoverGirl rolled out AR tools to let customers “try on” makeup and analyze their T-zones, personalization-focused beauty brands have emerged with the promise that their product is the right product for you and only you.

Investment in the space has grown in eight out of the 11 years between 2010 and 2021, per PitchBook data reported to Retail Dive, topping $1 billion as of September last year.

• Compare that to the $1.7 billion raised in total by the entire beauty industry by that point in 2021.
• Plus, out of 146 total deals in the beauty space, about two-thirds were in personalized beauty.

But, what does it take to formulate a product assortment that accommodates each customer’s specific needs? Retail Brew spoke to the co-founders of Pure Culture Beauty, Prose, and Proven Skincare about why they’re betting on custom products, and how they see the space growing.

First up: Prose’s Paul Michaux.

He and Arnaud Plas were working on corporate strategy at L’Oréal before they—along with real estate veteran Nicolas Mussat—started the personalized hair-care company in 2016 to tackle two problems: 1) customer segmentation and 2) plastic waste and over-production.

“The outcome of customer segmentation is that you end up trying to create a product for everyone. And that doesn’t really work. It’s trying to put people into a box,” Michaux told us. “But at the end of the day, you don’t create a platform for anyone that really works.”

What’s next: Michaux predicts more beauty brands and more tech will specialize in personalization. Prose, for example, developed its own fully stacked in-house DTC technology, which spans everything from its website to machine-learning algorithms for formula creations and routine recs.

In 2020, Prose even implemented an automated fulfillment machine, which lets the company “produce made-to-order products at scale,” Michaux explained.

• It reprograms itself for each unique bottled formula, and Prose claims it’s helped output increase by 4x and precision by 5x.
• The company, which said it’s been growing revenue by 2x–3x throughout the last three years, is currently on track to do over $100 million in revenue in 2022.

“The tech allows us to create this at scale,” Michaux said. “The trend is here to stay.”

Want more predictions? Click here to read what Pure Culture Beauty’s Joy Chen and Proven Skincare’s Ming Zhao think is coming up for the space.—JG

For the PGA Tour Superstore, 2021 was a hole in one.

The specialty retailer said sales for the year grew more than 80% from 2019 (which was then a record year for the company) and that it did more $$ in the first half of 2021 than in all of 2019.

• PGA Tour Superstore also noted that women’s apparel sales increased 59% from 2020, while women’s footwear was up 67%.
• But…it didn’t share specific figures.

Drive it home: The company credits some of this growth to upping its in-store experiences, from interactive simulators to putting greens that let customers try before they buy. It also opened its 50th store in 2021, with plans for at least eight more this year.

“Our business is not as much just coming in and buying off the rack,” Dick Sullivan, PGA Tour Superstore’s president and CEO, told Retail Brew. “We want to customize what [customers are buying].”

• Supply chains are having an effect—getting fitted for a set of clubs now takes weeks instead of days, noted Sullivan—but the company is focusing on its 150+ US suppliers to fulfill orders.

Hiring right: PGA Tour Superstore is also counting on its in-store employees to provide an unparalleled experience, rooted in educating shoppers.

• When the pandemic shut down all of its stores for 50+ days in 2020, the company had its workers go through 40,000 hours of product training.

“We want our associates to be smarter when that customer comes in and asks them the question,” Sullivan said. “We want our associates to be smarter than the manufacturer, so we said, ‘We’ll reinvest dollars—versus putting the lights on in our buildings—we’ll reinvest in trainer associates to a whole different level.’”—JS

It’s 2022, and Pinterest wants to be at the forefront of the new wave of furniture shopping. The company yesterday announced it is expanding its AR tools to include furniture and home decor.

Decked out: Pinterest users in the US can now measure and size up chairs, couches, and more right in the company’s app to make sure it’s the right fit, literally, and go from pin to purchase. (The platform is working with retailers including Crate & Barrel, Walmart, Wayfair, and West Elm.)

• With 80,000+ shoppable pins, this is Pinterest’s largest AR “Try On” shopping investment.

Making moves: Pinterest introduced its AR shopping tools back in 2020, letting users test lipstick, and followed that up with eyeshadow last year. It was only a matter of time before furniture joined the party: The company said home decor is its No. 1 category, with 3.37 billion search clicks in 2021.

• Oh, and add that shoppers are 5x more likely to make a purchase from a Try On pin than a regular pin, per Pinterest.

“These behaviors are happening across Pinterest every day, which is why we’re continuing to advance technologies like AR Try On and make Pinterest a full-funnel shopping destination that takes people from inspiration to purchase anywhere in the app,” Jeremy King, the company’s SVP and head of engineering, said in a statement.—KM

If your version of pillow talk typically includes subjects such as crypto, stocks, or a guy named Elon, we’ve got the perfect Valentine’s Day gifts for you.

Check out the Morning Brew Shop and shop the collection.

Today’s top retail reads.

Look here: Retailers turn to facial-recognition tech to tackle smash-and-grab robberies, but not without controversy. (Forbes)

Toss up: Wilson, at 108, is finally adopting a DTC strategy—and has opened its first flagship store (where throwing balls inside is encouraged) since the shift. “My ambition is to create mayhem for our store staff,” explained Wilson’s president, Gordon Devin. (Retail Dive)

The buck shops here: Dollar Tree vs. Dollar General, a photo essay showdown. (Insider)

Check it out: Want to level up your daily life? Check out Sidekick, the twice-weekly newsletter that curates recipes, productivity hacks, and content recs to help you live smarter.

What happened in the world of retail this week in…1925 and beyond? Retail Brew takes you way, way, way back.

Some companies really put on a show this week:

• On January 30, 2015, after nearly a year (and a green light from the FTC), Albertsons and Safeway finally merged, creating the second-largest grocer in the US.
• On January 31, 2016, Ernie Herrman was named the CEO of TJX.
• On February 2, 1925, the first Sears store opened in Chicago.
• On February 3, 1999, Victoria’s Secret streamed its first-ever online fashion show—drawing in about 1.5 million viewers worldwide. Oh, and this was about two months after the lingerie company even created its website.
• And on February 5, 2009, Fortunoff, the furniture, home (and jewelry?) retailer, filed for Chapter 11 bankruptcy.

Catch up on the Retail Brew stories you may have missed.

• The keys to making a subscription work
• The future of alt-meat: cleaner ingredients, whole-cuts, and a lot more competition
• Why brands should consider embracing negative reviews