Shu Uemura To Exit U.S. Market

Goodbye to Shu! L’Oréal USA will close all U.S. operations of Shu Uemura Cosmetics. The move was made after L’Oréal Group posted less than stellar results during the recession.

L’Oréal took a 35% stake in Shu Uemura in 2000, going on to acquire a controlling interest in November 2003. The brand’s current U.S. distribution was forged in 2004, although selected stockkeeping units entered the American market in 2003.

According to Carol Hamilton, president, L’Oréal USA’s Luxury Products Division, the move was made to focus on growing the larger brands in the division’s portfolio. Besides Shu Uemura, the Luxury Division contains the Lancôme, Yves Saint Laurent, Giorgio Armani, Ralph Lauren and Kiehl’s brands, as well as a number of fragrance licenses, including Viktor & Rolf and Diesel.

Shu Uemura is available in 18 countries; the decision does not affect any other market. The brand is said to do about 80% of its business in Asia.