The direct-to-consumer (DTC) magnificence increase of the 2010s reshaped how shoppers uncover, store, and interact with cosmetics. Digital-first manufacturers constructed loyal communities, bypassed conventional retail gatekeepers, and scaled at exceptional velocity, usually fueled by enterprise capital and social media momentum.
However because the trade evolves, the very mannequin that after powered speedy development is now being examined. Shifting client expectations, rising prices, and intensifying competitors are forcing many of those manufacturers into rethinking their methods and, in some instances, their complete enterprise fashions.
Disruption started with the Covid pandemic. As social distancing and distant work grew to become the brand new norm, demand for make-up declined sharply, forcing magnificence retailers and types to restructure debt, shut bodily shops, and, in some instances, file for chapter.
Whereas the sweetness sector has since rebounded, the restoration has been uneven. Now, DTC manufacturers are dealing with a brand new actuality. Development alone is now not sufficient; profitability and self-discipline matter simply as a lot.
Based in 2014 as a digital-first model, Glossier shortly rose to recognition, notably amongst Millennial shoppers. Its community-driven strategy and minimalist aesthetic helped outline a brand new period of magnificence advertising and marketing.
However regardless of its early success, the model now faces the identical pressures affecting a lot of the DTC trade, together with slowing development, rising prices, and the problem of increasing its buyer base.
Glossier confirms retailer closures
Glossier has confirmed plans to shut 9 of its 12 shops over the following two-and-a-half years, leaving solely three areas open.
This transfer is a part of a broader effort to streamline operations and refocus on long-term profitability. The corporate has framed the choice as a part of a strategic reset to shift away from aggressive bodily growth towards a extra selective, performance-driven retail technique.
Shops remaining open:
- New York Metropolis
- Los Angeles
- London
Shops slated for closure:
- Atlanta
- Boston
- Brooklyn
- Chicago
- Dallas
- Washington, D.C.
- Las Vegas
- Philadelphia
- Seattle
Glossier’s management adjustments and operational overhaul
The closures come amid vital inside restructuring.
Colin Walsh assumed the position of Glossier’s new CEO in October 2025, and through his first couple of months on this new place, he has already laid off about one-third of the corporate’s workforce and canceled beforehand deliberate product launches, based on Enterprise of Vogue.
Whereas bodily shops as soon as performed a central position in defining Glossier’s identification because the opening of its first showroom in New York Metropolis in 2016, many more moderen areas had been underperforming.
Third-party retailers have confirmed extra environment friendly, driving greater gross sales volumes with out the capital-intensive overhead required to function branded shops.
At present, Glossier merchandise are extensively distributed via main world retailers with brick-and-mortar shops, resembling Sephora, Area NK, and Mecca. The model additionally has a storefront on Amazon, reflecting a broader trade shift towards a large-scale, diversified distribution mannequin.
Glossier reveals plans to shut 9 of 12 shops.
Mike Kemp/In Photos by way of Getty Pictures
Why Glossier is conserving solely three shops
The choice to maintain simply three areas is very strategic.
Reasonably than functioning as conventional shops, these shops are being repositioned as experiential hubs designed for occasions, group engagement, merchandising experiences, and product testing.
Based on Walsh, the New York, Los Angeles, and London areas account for 55% of retailer income and 60% of latest prospects. Concentrating sources on these high-performing markets permits the corporate to take care of model presence whereas enhancing general effectivity.
Glossier’s valuation actuality verify
At its peak in 2021, Glossier was valued at almost $2 billion, backed by distinguished enterprise capital corporations that invested a mixed $266 million.
Nonetheless, that valuation was pushed much less by monetary efficiency and extra by expectations that the corporate might scale like a know-how platform, a story usually emphasised in press and investor conversations, based on Forbes.
That narrative has since shifted. Glossier’s valuation has declined considerably and is now reportedly under $1 billion.
The corporate has explored elevating further capital, together with a reported try to safe $100 million final yr and to facilitate secondary shares, based on Puck.
There have been additionally reviews of potential acquisition discussions with LVMH in 2024, although no deal in the end materialized, based on Puck.
The evolving DTC magnificence trade
Regardless of particular person manufacturers’ struggles, the worldwide magnificence trade stays resilient. Valued at roughly $450 billion, it’s projected to develop at an annual fee of 5% via 2030, based on McKinsey & Firm’s State of Magnificence 2025 Report.
Within the U.S., the status magnificence market rose 2% to $16 billion within the first half of 2025, whereas gross sales at mass retailers elevated 4% to $34.6 billion, based on Circana.
Extra protection on retail retailer closures:
- 79-year-old fast-fashion chief closing extra shops
- 125-year-old retail chain to shut extra shops in 2026
- 77-year-old jewellery large will shut 100 shops, shut 2 manufacturers
Nonetheless, development alone is now not sufficient to ensure success.
Shoppers have gotten extra selective, prioritizing product efficiency, worth, and transparency. Inflation and higher entry to data have raised expectations, pushing manufacturers to remain forward of developments to keep away from being outpaced by the competitors.
“A strong uptick in beauty spend, plus higher inflation and greater access to information, has pushed shoppers to pay closer attention to whether products deliver,” mentioned McKinsey & Firm trade analysts. “Consumers are selectively splurging across not only consumer discretionary categories but also beauty subcategories.”
For manufacturers, this implies sooner innovation cycles, sharper positioning, and a deeper understanding of client wants.
The rise of retail intermediaries
One other main disruption is the rising dominance of main magnificence retailers and marketplaces resembling Sephora, ULTA Magnificence, and Amazon.
Whereas these platforms present scale and visibility, in addition they intensify competitors. Manufacturers now compete side-by-side in the identical retail areas, making differentiation tougher and margins tighter.
For a lot of former DTC disruptors, success more and more depends upon how effectively they navigate, not bypass, these intermediaries.
Magnificence manufacturers battle to outlive
Glossier is way from alone. Throughout the sweetness sector, manufacturers are dealing with mounting stress, resulting in closures, restructurings, and elevated competitors for funding.
A number of well-known labels have shut down or undergone vital adjustments in recent times.
Magnificence manufacturers which have closed
- Pat McGrath Labs: It put its property up for public sale in late December 2025 and filed for Chapter 11 chapter in 2026, based on Hilco World and Enterprise of Vogue.
- Flower Magnificence: The model co-founded by actress Drew Barrymore closed in September 2025, based on World Cosmetics Information.
- Beautycounter: Enterprise shut down in April 2024 after getting into administration and later rebranded to Counter in 2025, based on Magnificence Impartial.
- Cowl FX and Mally Magnificence: Dad or mum firm AS Magnificence Group closed the sweetness labels in January 2026, based on TheStreet.
- Gxve Magnificence: The model based by music star Gwen Stefani steadily shut down in early 2026, based on Enterprise of Vogue.
The shutdowns of those manufacturers and Glossier’s retailer closures spotlight a broader trade shift by which even essentially the most influential DTC manufacturers should show they’ll function profitably in a extra disciplined, retail-driven atmosphere.
Associated: 48-year-old nostalgic mall retailer will shut 25 shops in 2026
