Wesfarmers Health is in the process of launching a new standalone beauty and wellness retailer Atomica, set to disrupt the market for competitors Mecca and MCoBeauty.
The conglomerate is behind major retailers like Officeworks, Bunnings, Kmart and Target along with Priceline pharmacies.
Priceline has 68 stores owned by Wesfarmers and 413 that are run by franchisees which have a pharmacy attached.
The company quietly launched their pilot Atomica store in December 2024 with a complete rebrand of an existing Priceline store that did not have a pharmacy attached at Castle Towers in Sydney’s north-west.
Another four stores are expected to open before 30 June, with Wesfarmers Health managing director Emily Amos telling the Australian Financial Review there was a big market between supermarket beauty aisles and chains like Mecca and Sephora.
She said the beauty and personal care market is valued at A$13 billion which made for a big opportunity for the company.
“The average price point is $20 to $40 and people are putting several items in their baskets,” she said about Atomica, “We must continue to bring in new brands. We are very focused on affordability and accessibility.”
The new stores will retail moderate to affordable products from brands such as Bubble Skincare and Korean beauty favourite Innisfree, along with established brands like The Ordinary, La Roche-Posay, Clinique, Conserving Beauty, Hairification, e.l.f. and Milani.
"We saw a gap in the market for an affordable and accessible beauty-focused retail proposition that delivers an inspirational in-store experience with coveted international brands and locally-loved Australian brands,” said Wesfarmers Health Retail Director Richard Pearson.
Peason said the company’s latest venture has earned early success and positive feedback.
“Harnessing inclusivity is a core value of atomica, and judging by initial feedback, we have started the journey of delivering a retail format that we know Australians will love,” he said.
Retail expert Professor Gary Mortimer told Pharmacy Daily "it's a smart move".
"It is a very clever conglomerate of businesses and they have a history of leaning in and out of businesses or sectors that are doing well, then moving out when the sector doesn't look like it's going to grow or when there's too much competition," said Mortimer.
At the time of writing Wesfarmers Ltd (ASX: WES) was trading at $71.87. The company has a market capitalisation of $81.52 billion
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