The Evolution of Beauty Retail in 2026

Beauty retail has evolved far beyond the transactional store. Physical spaces are now immersive playgrounds, cultural hubs and learning environments, designed to entertain, educate and emotionally connect.

From AI-powered shade matching and VR try-ons to fragrance libraries and bookstore-inspired boutiques, the most compelling beauty spaces blend technology, storytelling and sensory design to turn shopping into an experience.

In this article we explore how the sector is redefining retail.

Playful Escapism

In a market saturated with products, brands are using humour, fantasy and spectacle to cut through.

Chinese multi-brand retailer Harmay opened its inaugural airport store in Shanghai Hongqiao, designed to resemble an airport luggage carousel. Products spill from open suitcases beneath faux information boards, all set against a vintage red interior — transforming duty-free browsing into theatrical discovery.

As part of its Joy Project, Ulta Beauty launched pop up series House of Joy: cultural experiences promoting self-expression, creativity and inclusivity. The space blends hair and beauty services with photo opportunities and music, positioning beauty as communal celebration, appearing at cultural events like Miami art week and Lollapalooza.

In London, Benefit Cosmetics debuted the Benemart pop-up, reimagining its products as playful grocery items. Highlights included the “Peas, Love & Pores” tin and the “Extra Glam Infused” full-face kit packaged like olive oil: kitsch, humorous and highly shareable.

US-based Fenty Beauty opened its first standalone mainland China store as a futuristic, metallic space complete with virtual portals for VR makeup trials, merging sci-fi aesthetics with digital experimentation.

British musician Harry Styles brought his Pleasing Astro Milk Bar pop-up to Chicago, blending retro American diner design with futuristic sci-fi elements to promote the brand’s Milky Way nail polish collection.

Meanwhile, UK cosmetics brand P.Louise created a Willy Wonka-esque ticketed entry to its warehouse experience. Candy-pink and unapologetically kitsch, the space features lip gloss charm stations, makeup academies, photo opportunities and a supermarket-style shop floor.

High street retailer Superdrug is also leaning into entertainment, launching 30 Beauty Playground stores. These spaces include product testing stations, social content creation zones and brand ambassadors offering personalised consultations and live demonstrations, turning shopping into participatory theatre.

Tech-Led Personalisation

Technology is no longer an add-on, it’s embedded into the store journey.

Japanese beauty brand Kate’s Shibuya flagship integrates AI into the path to purchase. An AI-powered vending machine analyses eye colour and recommends complementary shades, automatically constructing a custom eyeshadow quad for immediate purchase.

Across the category, VR trials, digital diagnostics and automated product creation are redefining how consumers discover and customise beauty in-store.

Sensory Immersion

As digital fatigue grows, beauty retail is responding with immersive, multisensory environments designed to slow shoppers down.

Space NK introduced a Fragrance Library in London, pairing scent discovery with guided listening experiences and meditation sessions to encourage calm and digital detox.

Australian prestige retailer Mecca unveiled a 4,000 sq m Melbourne flagship that fuses retail with salon services, clinical treatments, a fragrance Scentsorium and the Meccaversity auditorium, hosting educational talks and beauty masterclasses. The space positions beauty as both ritual and learning journey.

Literary & Cultural Storytelling

Books, culture and intellectual depth are becoming unexpected pillars of beauty retail.

British brand Lush opened a standalone Perfume Library in London’s Soho, deliberately contrasting the bold aesthetic of its Oxford Street store. The minimalist space stocks just 12 scents alongside the books that inspired their creation, all available to purchase.

French-American perfumer Le Labo designed its Shanghai flagship as a reading nook dedicated to perfume literature, encouraging slower, more reflective browsing.

Chinese fragrance brand Documents launched the Yuyuan Study bookshop, housing more than 200 titles and hosting author talks. Its branding evolves in parallel with new scent releases, reinforcing narrative depth.

Luxury fashion house Saint Laurent’s Babylone concept store sells rare books, out-of-print publications, art and records curated by creative director Anthony Vaccarello, blending fashion, culture and collectability.

Meanwhile, Aesop reprised its Queer Library initiative in London, offering complimentary books by LGBTQ+ authors and allies, reinforcing its longstanding literary and community focus.

Education & Expertise

Retail is increasingly positioned as a site of skill-building and self-improvement.

Korean makeup artist brand Jung Saem Mool’s Seoul flagship combines store, academy and salon, offering masterclasses alongside professional makeovers and hair styling services.

In New York, Dr Barbara Sturm hosted an Anti-Inflammatory Workshop, blending digital skin analysis tools with juices, supplements, light therapies and treatments, reframing skincare as holistic health.

History and culture 

Finally, brands are leaning into history, wellness traditions and cultural roots to create deeper resonance.

Indian wellness brand Kama Ayurveda opened a UK flagship inspired by Keralan design. The space offers wellbeing consultations and traditional stress-relieving treatments rooted in Ayurvedic medicine, emphasising balance between mind, body and soul.

Fast-growing ancestral skincare brand N8iV Beauty celebrates Indigenous cultural identity. In 2025, it launched the Native Star boutique in San Diego, a luxury destination for Native fashion, beauty, art and lifestyle.

The Big Shift