August 6, 2013, 4:42 PM

Target will buy web skin care and cosmetics retailer DermStore.com

The retail chain says DermStore will operate as a wholly owned subsidiary.

Amy Dusto

Associate Editor

Lead Photo

Target Corp. will acquire skin care and cosmetics e-retailer Dermstore LLC, the retail chain said  today. The 26,000 products and 750 brands DermStore sells, and its expertise in selling them online, will help Target expand its share of online sales in these categories, the retailer says.

Target did not say how much it will pay for Dermstore. Target is No. 18 in the 2013 Top 500 Guide. DermStore is No. 279.

DermStore, which also operates hairenvy.com and blush.com, will become an independent subsidiary of Target under the name DermStore.com, Target says. Current CEO Dan Obegi will become president of the subsidiary, reporting to Casey Carl, president of multichannel and senior vice president, enterprise strategy, at Target.

“There is no doubt that the online beauty industry is growing rapidly, and this unique opportunity enables Target to gain insight into the superior online customer experience DermStore provides,” Carl, says. “Not only will DermStore’s 750-plus brands offer Target expanded breadth across the beauty and skincare industries, but also access to exceptional content and helpful resources we know consumers want.”

Top 500 e-retailers selling in the health and beauty category had combined web sales in 2012 of roughly $274.9 billion, up slightly from $2.748 billion in 2011, and up 42.8% over the last decade from $192.4 billion in 2003, according to Internet Retailer estimates. DermStore had 2012 web sales of about $56.5 million, up 10.1% from $51.3 million in 2011.

In March, Target announced that it would buy cooking and kitchen supplies e-retailers Cooking.com Inc. and Chef’s Catalog in two separate transactions.

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