Online retailer, Adore Beauty, has bought back the 25 per cent stake in the business it sold to Woolworths less than two years ago.
Kate Morris, the founder and CEO of Adore Beauty who started the Melbourne company in 1999, said the funding from Woolworths had helped the company grow, however the strategic alignment between the two businesses had shifted.
“Adore Beauty’s main objective has always been to empower beauty consumers,” Morris said. “The relationship with Woolworths certainly helped us to do this by enabling us to expand our range, reach new customers, and improve our customer experience. However, nearly two years down the track, we felt that our respective goals and priorities were no longer aligned.
“Our focus now is to keep driving the fantastic momentum that we have, and continue to build Adore Beauty as a disruptive beauty democracy in Australia. For the business to develop long-term, we believe that being an independent company puts us in the best position to take new opportunities and push the next phase of growth. We have parted ways amicably, and remain grateful for the fantastic opportunities the partnership has provided.”
Adore Beauty has added 50,000 customers over the last six months, expanded its range to more than 12,000 beauty products, and is pushing 60 per cent revenue growth year on year.
The online retailer also recently implemented Pitney Bowes Borderfree retail solution, which optimises an ecommerce site for different markets around the globe. The result is Adore Beauty can sell its beauty products to shoppers in more than 200 countries and 64 currencies.
“We have continued to see strong profitable growth and are leveraging the success of the past year to reach consumers internationally,” Morris said.
In January Which-50 reported Adore Beauty had quietly closed the doors of its Tmall storefront that it had opened on Alibaba’s global marketplace in April 2016 as a way to enter the Chinese market.
“After an initial six-month trial on Tmall Global, we felt that the marketplace environment wasn’t a good fit strategically for Adore Beauty or for the luxury brands we work with,” Morris told Which-50 at the time.