To learn more about Sephora’s recent initiative, be sure to attend CEW’s upcoming event, Sephora at Kohl’s: Transforming the Retail Industry with Long-Term Strategic Partnership. Click here to learn more and register.

Sephora has shared plans to mitigate racially biased experiences and unfair treatment for shoppers in the retail sector by implementing change across all facets of its operations, from employee training to merchandising mix to marketing messages to inclusivity in the workplace. This commitment is a result of the industry’s first large-scale study commissioned by the beauty retailer, Racial Bias in Retail Study, which took place from the end of 2019 to the end of 2020. While Sephora has already begun implementing many of these changes in the U.S. both in-store and online, the survey and its subsequent findings apply to the retail industry as a whole, including sectors such as apparel, electronics, automotive and department stores.

The national study was designed to identify common experiences across retail, including beauty, to create a more actionable and useful resource for all.  Comprised of academic literature reviews, cultural insights analysis and comprehensive qualitative and quantitative research*, the study offers an in-depth look at the experiences of Black, Indigenous, people of color [BIPOC] as both shoppers and as employees.

Key findings from the study show that two in five U.S. retail shoppers have personally experienced unfair treatment on the basis of their race or skin tone. And, that Black retail shoppers are two and a half times more likely than white shoppers to receive unfair treatment based on their skin color (44% vs. 17%), while BIPOC shoppers are twice as likely than white shoppers to receive unfair treatment based on their ethnicity (30% vs. 15%).

Employees were also considered in the study, revealing that one in five retail employees report having personally experienced unfair treatment based on their race at their place of work (20%)—either from customers or coworkers. And, one in three retail employees have contemplated quitting when they experienced racial bias and unfair treatment (31% for all employees; 37% for Black employees).

The research also identified five primary truths that define retail shoppers’ experiences with racial bias.

The first is that the lack of diversity across marketing, merchandise and retail employees results in exclusionary treatment before shoppers even enter a store. Survey results show that three in four retail shoppers (74%) feel that marketing fails to showcase a diverse range of skin tones, body types, and hair textures, while two in three (65%) think stores fail to deliver an equally-distributed assortment of products catering to different shoppers’ tastes and preferences. Moreover, nearly four in five retail shoppers (78%) don’t believe there is representation in brands or companies that are owned by and made for people of color.

A second retail truth is that U.S. BIPOC shoppers feel in-store interactions are driven by their skin color, appearance and ethnicity, yet retail employees cite behavioral attributes, rather than appearance, as the basis for their interactions. BIPOC retail shoppers are three times more likely than white shoppers to feel most often judged by their skin color and ethnicity (32% vs. 9%). White shoppers, on the other hand, are more likely to cite factors like age (27% vs. 12%) or attractiveness (13% vs. 7%), as the primary basis of the treatment they face. While shoppers feel they are being judged by their appearance, three in five (60%) retail employees surveyed cited behavioral attributes rather than physical attributes when determining how to approach or interact with shoppers. This gap in perception results in a significant disconnect between how shoppers and employees interpret interactions in U.S. retail.

A third retail truth is that U.S. BIPOC retail shoppers use coping mechanisms, such as shopping online, to minimize or avoid an anticipated biased experience when in-store. While many customer experience needs are universal, BIPOC shoppers have some needs that hold greater importance in helping them feel welcome. The study also showed there are clear areas where retailers can focus efforts to make the shopping experience more inclusive and welcoming for all. The findings show that BIPOC shoppers have some needs that hold greater importance in helping them feel welcome, as compared to white shoppers, in creating a positive in-store experience, including promptly being greeted and offering assistance when shoppers enter the store, telling shoppers about new products, offers, and services, and having store associates who “look like me.”

A fourth truth is that a majority of retail shoppers do not voice concerns about negative experiences directly to retailers – creating missed opportunities for feedback and improvement, and impacting future sales as shoppers take their business elsewhere. Only 30% of shoppers reacted actively to unfair treatment as a means of providing feedback to the retailer, such as publishing an online review or social post about their experience, while fewer than one in five (15%) reported raising the issue with a manager or store supervisor.

A fifth retail truth is a meaningful and long-term action is most important to U.S. retail shoppers and employees. Both expect retailers to show their commitment to change through new programs, training and tools designed to address these pervasive issues.

Sephora’s action plan will address three core areas of its operations in the U.S. The first is within marketing and merchandising, where Sephora will commit to building on its commitment to the 15 Percent Pledge, and double its assortment of

Black-owned brands by the end of 2021.It will also prominently feature and advertise Black-owned brands through a dedicated tab on the Sephora website, which is already in progress. The retailer will also evolve this year’s 2021 Accelerate brand incubator program to focus exclusively on cultivating and growing BIPOC-owned and founded brands. New marketing production guidelines that reinforce consideration of a diverse array of backgrounds, identities, ages and body types in campaigns, social media, marketing and more will also be implemented, as will the cultivation of the industry’s most diverse influencer groups through the Sephora Squad.

Following the areas of marketing and merchandising are the in-store experience and operations departments. Here is where Sephora will commit to rolling out a new greeting system across all stores to ensure a more consistent experience for all store visitors upon entry. It also looks to create new training modules required for all Beauty Advisors that better define what client engagement should look like at each point in the shopping experience and what behaviors will not be tolerated. A dashboard will be created to measure employee training compliance and efficacy. In addition, Sephora will implement new client feedback mechanisms to better identify incidents of bias, including those experienced by nonpurchasers.

Sephora also looks to build a more inclusive workplace. To meet this goal the retailer is pledging to build new recruiting, mentorship, community, and career development programs to support the sourcing, hiring and advancement of employees of color. It will also build on its Pull Up For Change commitment, update zero-tolerance policies that prohibit discrimination, and increase the frequency and depth of employee training.