Beauty retailer shares fall after major Amazon announcement

Reuters has reported that shares for a number of specialist beauty retailers have fallen after Amazon announced it will start selling products used by licensed hair stylists, barbers and beauticians.

A wide range of brands including OPI Professional, Wella Professional and more, will soon be available in a one-stop shop on the US version of e-tailer. Fast, free shipping available to customers with Amazon Business Prime accounts is predicted to be an even bigger blow.

"Shares of Sally Beauty Holdings, which targets industry professionals, sank 17%, while those of Ulta Beauty Inc fell about 3%," the article reads.

"They are the just the latest to suffer from Wall Street’s concern about moves by the world’s largest retailer into a series of niche or more regulated markets.

Last year, U.S. pharmacy chains and drug wholesalers such as CVS, Walgreen and McKesson Corp lost billions in market value when Amazon took its first step into online pharmacy by buying here small existing player PillPack."

No announcement has been made as to whether this category will be made available on Amazon Australia in the near future. We will report on further updates.