Adore Beauty partners with tutch to power endless aisle capabilities for retail expansion

Adore Beauty Group Ltd. (ASX: ABY), Australia‘s premier online beauty retailer, has announced a strategic partnership with tutch, a Microsoft-backed in-store digital platform, to power its ambitious entry into physical retail. This collaboration is set to enhance Adore Beauty’s omnichannel beauty strategy, integrating digital and physical shopping experiences through endless aisle capabilities. The initiative aligns with the retailer’s bold three-year growth plan, which aims for a 30% increase in group revenue and a significant boost in market share.

The partnership signifies a pivotal moment in Adore Beauty’s evolution, as the company transitions from a pure e-commerce platform to an omnichannel beauty authority with a network of over 25 physical stores planned across Australia. This strategic shift is expected to double its EBIT margin, achieve over 500,000 in-store transactions annually, and expand its customer base by more than 100,000 each year.

Why is Adore Beauty expanding into physical retail?

While e-commerce has experienced exponential growth in recent years, physical retail remains a dominant force in the beauty and personal care industry. As of 2024, Australia’s online beauty market accounted for just 12.5% of total sales, leaving approximately 87.5% of revenue generated through traditional brick-and-mortar stores. This data highlights the limitations faced by pure-play online retailers, who risk missing out on a substantial portion of the market without a physical presence.

Recognising this gap, Adore Beauty’s CEO, Sacha Laing, emphasised the natural progression of the company’s growth strategy. Laing stated that Adore Beauty has strong foundations poised for material growth, and taking the group from a pure-play online beauty platform into an omnichannel beauty authority is a natural evolution for the company. This shift reflects an understanding that physical stores offer opportunities for brand visibility, customer engagement, and an immersive experience that online platforms cannot fully replicate.

The move into physical retail is not just about increasing revenue but also about enhancing brand visibility, customer engagement, and loyalty. By providing a tactile, in-store experience complemented by digital convenience, Adore Beauty aims to deliver a seamless shopping journey that caters to evolving consumer preferences. This approach acknowledges the modern consumer’s desire for flexibility—being able to interact with products physically while also having access to the extensive range available online.

How does tutch’s endless aisle technology enhance the in-store experience?

At the core of this transformation is tutch’s endless aisle capabilities, a technology designed to bridge the gap between online and in-store shopping. tutch’s innovative platform enables customers to access Adore Beauty’s entire product catalogue, regardless of physical shelf space limitations. Through interactive digital kiosks, shoppers can browse, research, and purchase products both available in-store and exclusively online.

The endless aisle capabilities empower customers to take control of their shopping journey. They can build a cart with in-store items while adding products from the online inventory, which are delivered directly to their homes. This approach not only enhances convenience but also maximises product availability, ensuring customers are never limited by stock constraints typical of traditional retail environments. Customers can interact with touchscreens to find detailed product information, read reviews, and compare options, creating a more informed and satisfying shopping experience.

According to Greg Jones, CEO of tutch, many retailers mistakenly view online and in-store shopping as separate experiences. However, the collaboration with Adore Beauty demonstrates that these experiences can seamlessly blend into one continuous journey, offering customers the best of both worlds. tutch’s platform eliminates the friction often associated with omnichannel retail by creating a cohesive environment where digital and physical touchpoints complement each other.

What does this mean for the future of beauty retail in Australia?

Adore Beauty’s physical retail launch, supported by tutch’s technology, marks a significant shift in Australia’s beauty landscape. The first store is set to open at Westfield Southland Shopping Centre in Melbourne, followed closely by another at Watergardens Shopping Centre. These stores will showcase how digital integration can elevate the traditional retail model, offering immersive, interactive experiences that attract and retain customers.

The introduction of endless aisle capabilities will redefine customer expectations within the beauty sector. Shoppers will no longer be restricted to the products available on shelves, enabling a more dynamic and personalised experience. This shift also supports Adore Beauty’s efforts to deepen customer relationships, as the brand can collect data from in-store interactions to further refine its offerings and marketing strategies.

The partnership with tutch is also a strategic move to future-proof Adore Beauty’s business. As consumer expectations continue to evolve, retailers that can offer a cohesive omnichannel experience will have a competitive edge. This initiative aligns with broader industry trends where the lines between digital and physical retail are increasingly blurred, driven by advancements in technology and changing shopping behaviours.

How does this partnership impact Adore Beauty’s growth strategy?

Adore Beauty’s collaboration with tutch is integral to its long-term growth strategy. By leveraging endless aisle capabilities, the company aims to achieve substantial revenue growth while enhancing operational efficiency. The integration of digital kiosks and seamless online-offline transitions will allow Adore Beauty to optimise store layouts, reduce overhead costs associated with extensive physical inventory, and improve overall customer satisfaction.

The company’s three-year strategic plan reflects its commitment to becoming Australia’s leading omnichannel beauty retailer. With a target of opening more than 25 stores, Adore Beauty expects to significantly increase its market share, tapping into customer segments that prefer in-person shopping experiences. The partnership with tutch ensures that these physical locations will not just be traditional stores but interactive spaces where technology enhances every aspect of the shopping journey.

This growth strategy also aims to create synergies between the company’s online and physical operations. Data collected from in-store interactions will inform digital marketing efforts, while the convenience of online ordering for in-store customers will drive higher transaction values. This holistic approach is designed to create a feedback loop where both channels support and strengthen each other.

What’s next for Adore Beauty and tutch?

Following the Melbourne store launches, Adore Beauty plans to accelerate its physical retail expansion across Australia. The rollout will be supported by tutch’s proven track record with other prominent retailers, including Fairchild RMN, Between the Flags, and Beacon Lighting. In these collaborations, tutch has demonstrated its ability to drive customer engagement, optimise transactions during peak periods, and enhance in-store sales performance through its innovative technology.

As Adore Beauty continues its transformation, the partnership with tutch represents a new chapter in the company’s journey. By combining the best of e-commerce with the immersive nature of physical retail, Adore Beauty is poised to redefine how Australians shop for beauty products, setting a new standard for the industry. The company’s vision extends beyond immediate revenue growth; it aims to become a leader in retail innovation, showing how technology can be seamlessly integrated into the beauty shopping experience.