From exclusive brands and AI-powered personalisation to bricks-and-mortar investment and a growing loyalty community, Sephora ANZ General Manager George Tsoukalas has revealed the four pillars driving the beauty giant’s next phase of growth.

Sephora is growing faster than the wider beauty market in Australia — and according to ANZ General Manager George Tsoukalas, there is a clear formula behind it.

Speaking at House of Sephora 2026 in Sydney, Tsoukalas gave media a rare look inside the retailer’s performance and strategy, revealing new market share figures, digital sales data and plans for further investment across its store network.

Sephora ANZ General Manager George Tsoukalas.

The presentation came as House of Sephora returned on a significantly larger scale, bringing together more than 40 brand experiences, two major brand launch announcements and, for the first time in some time, 600 Sephora customers alongside media, store leaders, team members and Beauty Pass members.

But beyond the launches, Tsoukalas used the event to explain what is driving Sephora’s momentum in Australia and New Zealand. “We have a magic formula. It’s a global magic formula,” he said, identifying four pillars at the centre of the strategy: curation, experience, community and talent.

And the numbers suggest that formula is working.

Sephora entered Australia in 2014. Since 2022, he said the business has grown approximately one-and-a-half times faster than the wider market, while its position in makeup is even stronger. “We’re not simply growing,” Tsoukalas said. “We’re actually taking share.”

Secret #1: Curation

In an increasingly crowded prestige beauty market, Sephora’s first pillar centres on what makes it onto the shelf in the first place.

“We’re constantly looking for what’s new, what’s next, emerging trends and new voices — brands that are doing something different,” Tsoukalas said. But securing a sought-after brand is only part of the equation.

“It’s more for us than just putting the brand on the shelf,” he said, explaining that Sephora works closely with emerging brands to reach new customers and build their businesses. That model has helped Sephora establish a portfolio of global beauty names while also supporting brands closer to home.

Ultra Violette at House of Sephora.

Tsoukalas pointed to Australian brands including Ultra Violette and Bangn Body as examples of local businesses within Sephora’s ecosystem, with the retailer looking at how it can help create opportunities for brands beyond their home market.

Exclusivity remains another important differentiator. At House of Sephora, the retailer showcased two significant additions to its Australian line-up: the highly anticipated return of Marc Jacobs Beauty and the Australian arrival of minimalist US beauty brand Merit.

George Tsoukalas and myself, Michelle Ruzzene, at the Marc Jacobs Beauty activation at House of Sephora.

Australia became the third market behind the US and UK to welcome the revived Marc Jacobs Beauty through Sephora, with the brand launching online on 1 September and in stores on 2 September. Merit, founded in 2021, gives Sephora another proposition targeting consumers looking for a more considered, simplified approach to makeup, skincare and fragrance.

Merit at House of Sephora.

For Sephora, these launches are not simply about adding more brands. They are about giving consumers a reason to choose Sephora in a market where beauty products have never been easier to access.

Secret #2: Experience

If curation determines what consumers find at Sephora, experience determines how they discover it.

“Retail is absolutely at the heart of everything that we do. It’s the beating heart of Sephora,” Tsoukalas said. Stores, he explained, remain the place where customers can experience newness, ask questions, seek advice and have fun with beauty.

That commitment is being backed by further bricks-and-mortar investment.

Sephora has around 40 stores across Australia and New Zealand and Tsoukalas confirmed the retailer will continue investing in the network through new openings and renovations. At least five existing stores are expected to undergo full renovations over the coming months, as Sephora refreshes parts of a network that has now been operating in Australia for 12 years.

Yet the modern Sephora experience increasingly moves between the physical and digital worlds.

E-commerce now accounts for around one-third of Sephora ANZ’s total turnover, with close to 70 per cent of its e-commerce business coming through mobile rather than desktop.

Tsoukalas said the distinction between those channels matters far less to the consumer than it does to retailers.

“Our customer doesn’t think in channels, they think Sephora, and then they make sure that they shop where they want to shop.”

Technology is also increasingly being integrated into the physical store.

Sephora’s Beauty Scan technology uses AI-supported analysis to help beauty advisors provide personalised skincare recommendations and colour matching, including foundation recommendations.

The retailer is now completing around 2,700 Beauty Scans each week, according to Tsoukalas, and the commercial impact is significant: customers who receive a scan are spending approximately three times more than customers who do not.

Importantly, the technology is not positioned as a replacement for the beauty advisor. Instead, Tsoukalas said the human interaction remains at the heart of the service — using technology to make the consultation more personalised.

Secret #3: Community

Sephora’s third growth pillar is moving beyond transactions to create an ongoing relationship with its customers.

Beauty Pass sits at the centre of that strategy.

Tsoukalas revealed the median age of a Beauty Pass member is 31, a figure he said demonstrates a broader and more diverse customer proposition than might traditionally be associated with the retailer.

For Sephora, however, the value of loyalty is not simply measured by how many people join.

The greater opportunity lies in customer lifetime value — developing a relationship that allows the retailer to better understand what a customer wants today and what they may want in the future.

That community strategy is increasingly extending beyond traditional loyalty mechanics into events, partnerships and more inclusive retail experiences.

One example is Sephora’s Quiet Hours, held every Tuesday from 10.30am to 11.30am across stores. During the hour, elements including music and other sensory stimulation are reduced to provide a calmer environment for customers who may find a conventional retail setting overwhelming.

House of Sephora itself demonstrates how the retailer is bringing community and experiential retail together, with hundreds of consumers invited inside what was traditionally an industry-focused brand discovery event.

It reflects a broader shift in beauty retail: consumers increasingly want access not only to products, but to the worlds surrounding the brands they buy.

Secret #4: Talent

The final pillar sits behind the other three: Sephora’s people.

Across Australia and New Zealand, around 1,000 team members represent Sephora and its brand partners in stores, and Tsoukalas described them as part of the “soul” of the business.

The retailer is continuing to invest in education and employee feedback, using regular internal surveys to understand the experience of its workforce and identify areas requiring action.

It is an important part of a strategy increasingly dependent on service.

As AI, mobile commerce and personalisation become more sophisticated, Sephora’s proposition still relies heavily on the people who can introduce a customer to a new brand, explain a product, provide a personalised recommendation or turn a store visit into an experience.

That combination of technology and human expertise may ultimately be one of the more telling elements of Sephora’s strategy.

So, what’s next for Sephora?

Tsoukalas opened his presentation with a challenge to the room.

“If you think you know Sephora, I think you’re about to see something a little different.”

That difference is increasingly being built specifically for the local market.

Tsoukalas revealed Sephora is rolling out a new campaign created specifically for Australia by its Australian team, using local talent, trends and culture alongside the products consumers are currently searching for and talking about.

It comes as Sephora continues to invest simultaneously in physical retail, mobile commerce, technology, exclusives, loyalty and its workforce.

But beneath those investments, Tsoukalas’ strategy is surprisingly straightforward.

Curation gets the right brands through the door. Experience gives consumers a reason to visit. Community gives them a reason to return. And talent brings all three to life.

For Sephora ANZ, those four pillars are not only powering its current growth — they provide the blueprint for where the retailer goes next.